Construction Wrap Insurance

The International Risk Management Institute defines Wrap Up or Controlled Insurance Programs as “A wrap up or a controlled/consolidated insurance program is a centrally procured and managed insurance and risk control program implemented for a construction project or a series of projects”. These programs can be split into two distinct categories.

Traditional Wrap Ups (Includes Workers Compensation and General Liability)

Single Program:

1. Construction values of $100 million

Rolling Programs:

1. Multiple projects on a single site $125 million over 2-3 years.
2. Multiple projects on different sites $150 million
3. Minimum size $20 million

General Liability Only Wrap Ups

These are most often used for residential construction exposures valued in the realm of $5 million, with multiple prospect programs available. The advantages of a wrap up program are your coverage is considerably broader and provides better protection. It also provides a control over your program with having one insurance carrier, creating stability and quality in that one carrier. Consolidating down to one system also allows for easier loss control as well as claims management, in turn giving a better protection to the sponsor of the program. A wrap up program typically results in a drastic savings as a the single systems simplification eliminates duplication and gaps in the coverage, while also scaling with the vastness of the project specific insurance. A proper wrap up construction program, should provide some key advantages.
  1. Risk Reduction and Loss Mitigation
  2. Claims management
  3. Constant communication
Our team of experts have decades in the industry allowing for them to make a specific, hand tailored program that fits your needs exactly. These same experts will than manage your program to ensure your continued success.

Other Possible Coverages in a Traditional Wrap Up

While a standard wrap up program consist of workers compensation, general liability, and excess liability, other coverages to consider could include:
  • Builders Risk
  • Professional Liability
  • Contractors Pollution
  • Pollution Legal Liability
  • Surety Subcontractor Default Insurance

Other Possible Coverages in a General Liability Only Wrap Up

A typical general liability coverage usually covers only general liability and excess liability excluding some other key insurances such as:
  • Automobile insurances
  • Contractors Equipment
  • Professional Negligence
These coverages are always a good place to start and look, but Reliable Risk Management will always manage your specific project and help to make a specific limits for every project to ensure you get the best coverage at the best price.

Excluded Parties

Some key things to remember are that not everyone is covered in a wrap up policy. Some typical excluded parties are:

  1. Vendors, suppliers, and delivery personnel
  2. Fabrication performed off site
  3. Design professionals (architects and engineers)
  4. Pollution, abatement or asbestos work
  5. At sponsor’s discretion, smaller contracts (e.g. $10,000 or less)
While all these various facets may seem daunting at first, Reliable Risk Management is here to work together with you on your specific project to ensure you have the best possible coverage and highest chance for success. Contact an agent today to discuss your options!