What is Wrap-Up Insurance?
Why is it so important
While business insurance policies can be purchased separately, a company that takes on a project worth $10 million or more will find wrap-up insurance to be ideal. Following is an overview of what this type of insurance offers and why it is important.
A Basic Overview of
Wrap-up insurance, as the name implies, is an all-encompassing insurance policy that covers all company workers, contractors and subcontractors working on a project. This type of policy typically lasts up to ten years and includes general liability, excess liability, professional liability, pollution liability, builder’s risk and railroad protective liability. Worker’s compensation coverage is often but not always included as well.
What are the Drawbacks of
Perhaps the only drawback to purchasing a wrap-up insurance policy is the high cost. However, value far exceeds the price tag for anyone who is undertaking a large project that is likely to last for many years. Furthermore, a business owner or investor can come to an agreement with contractors and subcontractors to divide up the cost of the policy, thus lowering initial costs for the person taking out the policy while still providing ample coverage for all involved.
Is Wrap-Up Insurance Right for You?
As was noted above, wrap-up insurance is highly recommended for any business owner or investor who takes on a project that is worth $10 million or more. However, anyone who is unsure whether or not this insurance is right for his or her business should feel free to contact one of our services representatives at their convenience.
Nahai Insurance Services has many years of experience offering various types of business insurance packages and we will be happy to go over your options, talk about the pros and cons of each one and recommend the form of insurance that will best meet your needs.
Wrap-up insurance costs a lot of money but can save even more money in the long run. It provides full coverage and can prevent legal problems arising from lack of contractor’s insurance and/or disputes regarding who is to blame for an accident or mistake on the construction site. A business owner who is starting a long-term construction project or is in the middle of such a project should seriously consider all that this insurance package has to offer to determine if wrap-up insurance is a wise investment for his or her company.
What are the Advantages of Wrap-Up Insurance?
Wrap-up insurance ensures that claims are processed in a speedy, efficient manner. Because everyone involved in a construction project is covered by the same insurance policy, there is no need to determine who or what is at fault for an accident.
Wrap-up insurance also ensures that a business owner is properly covered at all times. One does not have to worry about whether or not a contractor has sufficient insurance and/or will maintain the right insurance policies for the duration of the project. Unlike general contractor’s insurance, a wrap-up insurance policy can be fully controlled and managed by the individual or business that is undertaking the construction project.