The Ultimate Wrap-Up Risk Guide You NEED to Read 🚨

Are Wrap-Up Insurance Policies Right for Your Project?

Exploring the world of construction insurance can be daunting, especially when considering the benefits of a Wrap-Up policy. In Part 1 of this series, we delved into the basics, but now it’s time to explore whether a Wrap-Up is the best fit for your specific project. Let’s dive in and uncover the key considerations.

Determining the Best Wrap-Up Option

1. For a Developer embarking on a large-scale project exceeding $250 million, a separate Wrap program tailored to that project may be the optimal choice. This approach allows for targeted coverage and attention to detail.
2. On the other hand, General Contractors or Owner/Developers overseeing a steady stream of smaller projects would benefit more from a rolling Wrap-Up. This versatile option enables the enrollment of an entire portfolio of work for comprehensive coverage.

Program Exceptions

While Wrap-Ups are widely available for various classes of work, there are exceptions to be mindful of:

• Demo-only projects and hazmat clean-up endeavors may not align with Wrap-Up policies.
• Projects with a significant self-performing exposure, where the program sponsor physically undertakes over 30% of the work, are typically not ideal candidates for Wrap-Ups.

Wrap-Ups Need Attention

A Wrap-Up insurance program demands active involvement and attention from all parties. It’s worth noting that:

• Deploying and managing a Wrap-Up requires substantial effort and dedication; it’s not a “set-it-and-forget-it” solution.
• While a competent broker and administrator handle most operational aspects, sponsors must remain engaged in critical tasks such as claims reviews and safety initiatives.

Wrap-Up Programs Are Not One-Size-Fits-All

Although Wrap-Ups offer superior coverage and potential cost savings, they may not suit every project or sponsor.

• Those seeking a hands-off insurance solution are likely better off exploring alternative options.
• However, sponsors willing to invest time and effort in the Wrap-Up process stand to reap substantial benefits in terms of project savings.

In conclusion, while Wrap-Up policies may not be the perfect fit for every project, they remain a valuable insurance tool for those willing to engage actively. For expert advice and assistance with Wrap placement and administration, reach out to TSIB today. Let’s navigate the intricacies of construction insurance together.

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