Wrap insurance, rather than traditional construction coverage, could be the best way to protect your upcoming project.
Coverage for construction projects used to be anything by straightforward. Traditional construction coverage asked subcontractors to name their general contractor as insured on their policy. Similarly, the contractor would name and indemnify the project owner in their policy. In this way, insurance coverage would (theoretically) trickle up to the project owner for full protection. There were issues, though. Here are a few reasons wrap insurance (a single policy protecting project owner, contractor, and subcontractors) is a much better option for protection your upcoming project than traditional construction coverage.
- Avoid Increased Legal Expense. When you rely on multiple policies, it’s not uncommon for cross complaints to arise if you end up in court to determine who should be held liable for an incident. With wrap insurance, there’s no need to point fingers (and waste money in the process). One single liability policy protects all parties, minimizing time – and costs – in court.
- Maintain Control. When you buy wrap insurance, you ensure that you’re not relying on John Doe’s lackluster coverage he pinched pennies while purchasing for your own protection. You get to maintain full control, ensuring you have enough coverage to avoid unexpected expense.
- Avoid Gaps in Coverage. Your contractors’ and subcontractors’ policies have been purchased to protect them, not your specific project. That means that if a incident arises related to your unique build, you could be left exposed. That is, unless you have wrap-up insurance! This coverage can be tailored to cover all the aspects of your upcoming build, minimizing your exposure to loss.
Would you like to learn more about how wrap insurance can control your costs while offering you the best protection? If so, contact Nahai Insurance Services. Our dedicated team of wrap-up coverage experts can help tailor the perfect policy to protect you.
