What is a GL-Only Wrap-Up?
If you’re an owner with a construction project and an eye towards risk management, you may not even realize that there are a variety of different controlled insurance programs or wrap-ups to select from. A few of the choices include general liability-only, single project, full wrap, maintenance program, and rolling program, among others. Out of all of them, you may find that a general liability only wrap-up is right for your project.
A general liability-only wrap-up offers project specific general liability coverage and a single policy for all insureds. It’s sponsored by the owner or contractor and covers all eligible contractors. A GL-only policy has become popular in the construction industry for commercial construction project values as low as $10 million as well as for condominium “for-sale” projects. These type of wrap-up programs can be structured to provide coverage “for-sale” residential exposures with project dedicated limits for the owner, general contractor, and all tiers of contractors.
The administration of a GL-only wrap-up is similar to that of a full wrap-up with lower admin costs. It also means that meetings are often done over the phone, there is no payroll tracking, and reporting is less with this type of program.
A GL-only wrap-up, like all controlled insurance programs, provides substantial cost savings over traditional insurance. For example, these wrap-ups often carry a low deductible, such as $25,000 or $50,000, and they do not require collateral.
Whether you’re looking for insurance for your project, we can help. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.