Understand How You Can Benefit From a Wrap Policy
The process of constructing a building involves a great number of risks to all parties, including the developers, building owners, contractors, and construction managers. Each of these parties will want to ensure they are covered by insurance policies to avoid paying for damage or injury claims out of their own pocket. Occasionally, the individual companies associated with a project will each purchase their own insurance. However, this can create unwanted gaps in coverage. By joining one single wrap-up insurance policy, all parties can reduce their overall risk and cost associated with coverage.
There are two types of wrap-up insurance policies to consider:
- Owner-Controlled Insurance Program (OCIP): This coverage is set up by the owner of the construction project for the benefit of the builder or contractor to cover all listed contractors.
- Contractor-Controlled Insurance Program (CCIP): Set up by the general contractor, this policy can be used to extend coverage to all contractors and subcontractors signed up to work on the project.
Securing the right wrap-up for your project is imperative in order to secure the peace of mind that it is wholly protected. Conventional policies may appear to be of use at first, but wrap-up policies are designed with complex construction tasks in mind. The benefits of a wrap-up policy over conventional policies include:
- There is no need to assign responsibility for third-party liability or property damage since all insured parties are covered under the same policy.
- This insurance gives you more control over the risk coverages you carry on a project, as well as determining appropriate limits.
- Subcontractors are provided coverage for multi-family construction builds. This is often excluded from individual subcontractor policies.
- The claims handling process is smoother with a wrap-up policy, which results in lower potential legal claims costs and less time spent resolving a claim.
When selecting a wrap-up insurance policy, you can tailor coverages that you want for your project. Typical coverages include:
- General Liability
- Excess Liability
- Builder’s Risk
Additional coverage can be obtained, depending on your needs. This may include:
- Workers’ Compensation
- Pollution Coverage
- Project Design Team Errors & Omissions
- Professional Liability
- Subcontractor Default Insurance
- And more!
Whether you’re looking for wrap-up insurance, we can help. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.