Owners, Contractors, and Construction Projects Wrap Up Policies
When your clients take on huge, multi-million dollar construction jobs the last thing they need to find out is that they have serious coverage gaps to contend with. They’re going to need a liability policy that serves as all-encompassing insurance and will protect all of the contractors and subcontractors working on this large project.
You can inform them that Construction Projects Wrap Up insurance is purchased for larger construction project costing over $10 million dollars. Wrap-up insurance is available both, as an owner-controlled and a contractor-controlled policy.
Owner-controlled versus contractor-controlled
The owner-controlled insurance program, (OCIP), is purchased by the owner on behalf of the builder or contractor. The owner assumes responsibility for the various risks and exposures associated with the project. Included in this insurance program are workers compensation insurance, general liability, excess liability, pollution liability, professional liability, a builder’s risk policy, and railroad protective liability.
On the other hand, contractor-controlled insurance programs (CCIPs) indicate a consolidated insurance program that is provided by the contractors and sub-contractors overseeing the project. This typically provides worker’s compensation and general liability coverage to all enrolled contractors and subcontractors for operations occurring at a specific project site. While the cost of Construction Projects Wrap Up insurance can be expensive, it can also be divided among general contractors and sub-contractors, which in turn spreads out the cost.
Why purchase wrap up insurance?
Jobs of this scope often requires hundreds of contractors that work in tandem, and relying on the individual policies of all of these people that are on site injects an enormous amount of risk into the project. Investing in a wrap up program merely fends off gaps in coverage, such as lapsed policies and inadequate limits.
The use of a singular insurance carrier streamlines the claims process allowing injured workers to get the help they need in a much more efficient manner. Furthermore, Construction Projects Wrap Ups typically include site safety programs that strive to avoid those accidents from happening in the first place.
As a broker, it is in your best interest to speak with clients embarking on these large projects and suggest ways to better protect their investment.