Be Aware of What Wrap-Up Insurance Provides
Over recent years, wrap-up insurance policies have become increasingly common. Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP) are types of wrap-ups that are for specific projects or project groupings with construction values of $100 million or more. They wrap-up workers’ compensation and general liability insurance for all of the on-site contractors and owners of the project site, providing easy and simple coverage.
While the coverage offered under the wrap-up is often broader than a contractor’s own policy, wrap-ups still present unique challenges. When you win the job bid and become an enrolled member in the wrap-up, ask the project owner for a copy of the insurance policy. As a member, you are entitled to receive this document. Be sure to review it thoroughly with your broker since it’s the smaller detail that is often the most important. You may want to consider the following:
- Additional coverage: Should you purchase completed operations coverage to safeguard your business after the project has been completed and the wrap-up has expired? You may consider asking your insurance carrier to endorse your policy for difference-in-conditions (DIC) coverage to protect you against losses that exceed the wrap-up coverage.
- Claims procedures: Understand the steps you must follow to be covered by the wrap-up in the event a claim is made.
- Deductibles: If a claim must be made, who pays the deductible? Are there limits? How will disagreements between yourself and the wrap-up owner be resolved?
Keep a copy of the wrap-up document in your files. If there are disagreements between the project owner and the contractor, the contractor may need to rely on the wrap-up to file a claim and resolve an issue.
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.