Wrap-up insurance could help real estate developers avoid financial disaster.
Finally! After years of slow build starts, the national economy is finally revving up. New projects are springing up and demand for residential, commercial, and public works development is on the rise. As a real estate developer, you’re probably thrilled. But before you jump on your next project, make sure you’ve protected it and your business with wrap-up insurance.
Wrap insurance is a type of development project insurance that covers all of the parties involved, from the project owner to the most minor subcontractor. Why would you benefit from this kind of coverage? Let’s take a quick look.
- Minimize the risk of lawsuits. When you have a single policy covering everyone, it’s clear which policy needs to cover any losses. This makes your claims process straightforward and eliminates the need to dispute whose coverage is responsible for which damages, which all too often leads to cross-liability lawsuits.
- Minimize the risk of loss. When each party involved in the development has their own policy, they likely don’t line up seamlessly. You run the risk of an insurance gap. That could be incredibly costly if you encounter an incident, only to find no one’s policy will step in.
- Minimize exposure for subcontractors. Generally, subcontractor policies don’t include coverage for residential multifamily projects. With your wrap policy, you can extend them this coverage, attracting the most qualified subs to your development.
- Minimize headaches. There are a lot of moving parts with any real estate development. Insurance doesn’t have to add another layer of complexity on top of it all. Streamline your coverage with wrap coverage.
If you’re a real estate developer, don’t hesitate to contact Nahai Insurance Services. We can help you assess your unique needs and determine if wrap-up insurance is right for your upcoming project. You have enough to focus on with your next development; let an expert handle your insurance needs.