Construction projects can involve many contractors and often operate on thin profit margins. Wrap-up programs are a great tool for risk managers to contribute to a project’s success. Not only do they reduce expenses, but they also provide improved safety standards, and better coverage – making them the essential consideration for savvy owners and contractors.
The typical approach of shifting risk from owners to contractors or subcontractors through contractual agreements can bring unforeseen consequences. Not only is a traditional model more expensive, but liability disputes may emerge due to conflicting contractual provisions and insurance terms and conditions. This can lead to costly and lengthy cross litigation between various parties involved in the project.
Fortunately, owners and general contractors have another solution– construction wrap-up programs that effectively manage all risks under a single insurance program.
What is Wrap-Up Liability Insurance?
Sometimes referred to as controlled insurance programs (CIP), 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 program for the construction project.
Wrap-up program advantages include:
- Ensures coverage for all enrolled contractors.
- Coordinated and consistent loss prevention services for all participating contractors.
- Coordinated medical treatment to manage injuries.
- Broad coverage with limits necessary to satisfy investor’s requirements for all participants.
Read more about the benefit of construction warp-up programs in the full article here and discover how Kapnick can help through our specialized team of in-house construction wrap-up experts.