This post is part of a series sponsored by TSIB.
We continue where we left off in Part 1, looking to answer, is a Wrap-Up right for every project? Now that we have previously identified the 2 main categories of a Wrap-Up, we can now dive deeper into the specifics of determining the best option.
Determining the Best Wrap-Up Option
Considering the 2 categories, a Developer with a large project of $250M+, may want to explore a separate Wrap program just for that one project. Whereas a General Contractor or Owner/Developer with a steady flow of smaller projects throughout the year would be best served by exploring a rolling Wrap-Up. This option would allow them to enroll their entire portfolio of work.
Program Exceptions
At the time of this writing, Wrap-Ups are generally available for all classes of work with some exceptions such as:
- demo-only projects
- hazmat clean-up
In addition, projects with a heavy self-performing exposure, where the program sponsor is physically performing significant portions of the work themselves (over 30%), are unlikely to be good prospects for Wrap-Ups. Outside of these exceptions, the feasibility of a Wrap-Up for you, will be determined by the underwriting guidelines of the carrier considering that specific project for coverage.
Wrap-Ups Need Attention
Lastly, it bears mentioning that not every insured is cut out to deploy and manage a Wrap-Up. Even with the best broker and administrator, Wrap-Ups still require a lot of attention by the sponsor; a Wrap-Up is not a “set-it-and-forget-it” type insurance program.
Program Sponsor Involvement
A good broker and administrator team will carry most of the work needed to place the Wrap-Up. Both parties will keep it running efficiently but the program sponsor still needs to be involved in tasks such as:
- claims reviews
- safety & loss control efforts
- regularly scheduled stewardship reviews of the insurance program’s performance
Even though a Wrap-Up provides superior and consistent coverage for all involved, it’s not the best program for everyone. Anyone looking for that “set-it-and-forget-it” insurance solution isn’t a good candidate for any Wrap-Up. However, for those who don’t mind some involvement, a Wrap-Up program has the potential to return a large amount of money in savings to the project’s bottom line.
As a highly specialized construction insurance services brokerage, TSIB focuses on the Wrap placement and the Wrap Administration. Reach out to TSIB today and learn more!
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