Why a contractor controlled insurance program (CCIP insurance) could be the right choice for you.
If your current construction project is large scale or is of a unique nature, it’s a good idea to consider wrap-up insurance to protect it. This coverage protects you as the project owner, your contractor, and subcontractors. Should the responsibility to get this policy fall to you or your contractor, though? Here are just a few reasons why it’s a good idea to get a contractor controlled insurance program – or CCIP insurance – to protect your construction project.
To begin, allowing your contractor to procure your project’s wrap-up coverage takes that need off your plate. It makes sense to see the purchasing of this insurance as an extension of your contractor’s duties. Since your contractor is responsible for maintaining a safe jobsite, he or she should also be responsible for the coverage that would kick in should those safety protocols fail to prevent an accident.
Secondly, when your contractor controls your insurance program, he or she is incentivized to make sure there are no issues with the project now or in the future. Wrap-up insurance generally includes coverage for completed operations. This type of protection extends for a time after the project is completed (e.g. 10 years). If you have CCIP insurance, your contractor will be responsible for the deductible that arises should you need to call on that coverage. If you’re the one controlling the policy, you would face that expense. That, in turn, would make it very difficult to wrap up your project costs until that completed-operations coverage expires.
CCIP insurance is a great way to transfer responsibility of coverage to your contractor while still ensuring you have the protection you need as project owner.
For all of your wrap-up insurance needs – including CCIP insurance – contact Nahai Insurance Services. We’re the only specialized wrap-up insurance brokers working on a nationwide basis, so we’re experts on the best coverage for your project. Don’t leave your next build exposed; call us today!