Insurance Programs

Partnering for Effective Risk Management

The Wrap-Up is an effective method for Sponsors to reduce insurance costs; enhance safety and claims handling procedures and protect assets by ensuring adequate limits and coverages are provided for a project(s).

The Wrap-Up strategy provides site-specific insurance coverage(s) protecting the Sponsor, construction manager, general contractor and all tiers of subcontractors. The program Sponsor obtains coverage on behalf of the parties enrolled in the program. The programs can be designed for single or multiple-site projects (Rolling Wrap-Up).

Controlled Insurance Programs (Wrap-Ups) typically include the following lines of coverage:

• Workers' Compensation
• General Liability
• Excess Liability

In addition to the Wrap-Up Coverages, the Sponsor may also consider additional coverages to control business risks associated with construction, such as:

• Builder's Risk
• Project Professional Liability
• Environmental Liability
• Delay- in -Completion
• Force Majeure
• Efficacy Insurance
• Subcontractor Default Insurance

The Controlled Insurance Program Advantage

Expanded Coverages, enhanced Risk Control & Claims Management and potential Cost Savings are the primary advantages of Controlled Insurance Programs (Wrap-Ups).

Expanded Coverage(s)

• Enhanced Coverage - The terms of coverage generally are broader than those provided by most contractors.

• Increased Limits - The dedicated project limits are typically higher than those of each contractor.

Risk Control & Claims Management

• Focused Loss Prevention - The contractors on a CIP project are required to follow one safety plan, which incorporates many risk management techniques to minimize injuries and accidents.
• Consolidated Claims Management - The CIP streamlines the claims process and reduces the likelihood of litigation between program participants.

Cost Savings

The Controlled Insurance Program may reduce the sponsor's insurance cost by as much as 35% over the coverage provided by each contractor. The factors that drive these significant savings are the economies of scale and effective risk control and claims management programs.

Additional Benefits

A CIP can also promote partnering in the following ways:

• Enhancing communication among program participants. Sponsors, insurers and contractors work together with one common goal.
• Removing insurance barriers for small and disadvantaged business enterprises (MBE/WBE).
• Protecting the general public from construction risks through coordinated planning and communications.
• Ensuring prompt and professional medical treatment for all injured workers through a single insurance provider.