Does a Wrap Up Policy Protect Trade Contractors?
Almost anywhere, construction is on the rise. Due to the increase, owners and general contractors are opting to implement more Controlled Insurance Programs (CIP or Wrap-Up) to protect their projects. Many are under the misconception that a wrap-up policy only benefits the owner and general contractor – and not the trade contractor. However, this isn’t the case. Wrap-up policies protect trade contractors. Here’s how.
Reduction of exposure.
The work performed under a wrap-up policy doesn’t count towards exposure on a trade contractor’s corporate program. The more work that is performed under a wrap-up, the less annual premium the trade contractor must pay, which can save on premiums. Keep in mind that it’s important to work with a broker who knows the industry and understands a contractor’s balance sheet.
Wrap-up policies are built on incentives for the general contractor or owner to maintain a safe working environment. This means that a strong safety program will provide the trade contractor with the safety they need, as well as making an impact on their insurance costs. A trade contractor can take advantage of free safety services and employee training. These services can have a significant, positive impact on long-term insurance costs.
Whether you’re looking for wrap-up insurance or individual insurance, we can help. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.