Wrap-Up Insurance for Large Construction Projects
As project owners know, creating and developing a large construction project can come with its own unique set of risks. Insuring all of the risks associated with large-scale construction projects can be a daunting task for the parties involved. The traditional insurance approach requires each party to procure and maintain separate coverage. Typically, the contractor and subcontractor then include the cost of insurance, plus a markup, in their project bids. In short, you may need to secure wrap-up insurance for your large project.
What is Wrap-Up Insurance?
Wrap-up insurance programs are centralized insurance and loss control programs intended to protect the project owner, general contractor, and subcontractors under a single insurance policy for the construction project. Insurers typically offer two types of wrap-up programs based on the party sponsoring the program:
- Owner Controlled Insurance Program (OCIP): The project owner sponsors and controls the program. Accordingly, the project owner is the first named insured, and the general contractor, subcontractors, and other participants are named insureds.
- Contractor Controlled Insurance Program (CCIP): The general contractor sponsors and controls the program. The general contractor is the first named insured, and the subcontractors and other participants are named insureds. The project owner is either an additional insured or a named insured, depending on the program.
A wrap-up insurance policy is a good idea for large projects for a number of reasons, including:
- Protects all the involved parties: Including the project owners, contractors, and subcontractors. A large construction project may rely on many people in the job site, and a wrap-up policy can cover them all.
- Coverage extends in a number of areas: Wrap-up policies can include coverage for general and excess liability, builder’s risk, and workers’ compensation. They can also cover environmental and professional liability or any other areas of exposure unique to your specific project.
Go straight to the experts; contact Nahai Insurance Services. We specialize in wrap coverage for large-scale construction projects and can provide you with the best policy. We’ll look at your unique build and its specific exposures to customize the right coverage to protect all project owners, contractors, and subcontractors involved. Call us today!
