How Much Does Wrap-Up Insurance Cost?
One of the most popular questions Nahai Insurance Services get is “How much will I need to pay for wrap-up insurance?” There are many variables that impact the cost of wrap-up insurance, and the price will fluctuate depending on the project and general contractors, among other factors. Here, we take a closer look into what wrap-up insurance is and the cost factors.
What is wrap-up insurance?
Construction wrap-up insurance is a liability policy that offers all-encompassing insurance that protects all contractors and subcontractors working on a construction project. There are two types of wrap-up insurance policies that you should be concerned about: Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP). Both do have their own benefits and cover similar things. In essence, a wrap-up is designed to provide comprehensive and complete coverage for all covered participants.
What determines the wrap-up insurance cost?
The cost of the wrap-up will depend on a variety of factors. To get a better understanding of how much a policy will cost, ask these questions:
- How many projects are there?
- How many different general contractors?
- How many phases/bid packages per project?
- What is the estimated number of contracts per project?
- What is the estimated term per project?
- Does the sponsor have prior wrap-up experience?
As always, insurance needs are unique and should be discussed with a knowledgeable insurance agent to determine the best fit of insurance coverage. You can save money when you choose wrap-up insurance. Want to learn more about the basics of wrap-up insurance? Here’s what you should know about wrap-up coverage as a contractor.
At Nahai Insurance Services, we focus only on doing flawless wrap-ups. We focus on the needs and preferences of a very small and exclusive group. When you’re ready to find reliable coverage, contact the experts at Nahai Insurance Services. We can assess your unique business and its unique risks, finding suitable coverage for your needs.