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Is this the first time your company needs to enroll in a Wrap-Up program? As you fill out the paperwork, you will need to know what your Risk ID number is.

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Wrap-Ups are a great risk management tool for large construction projects. There are many moving parts of a Wrap-Up program, which can seem overwhelming if you do not have the proper structure in place. The key elements of a Wrap-Up that create this structure include Program Design, Financial Risk, Administration, and Claims Management.

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A Controlled Insurance Program (CIP, also known as a Wrap-Up) is a smart risk management tool for any construction project. However, before the first shovel hits the dirt, you have a big decision to make—who will be the Sponsor for your project?

The Sponsor is responsible for the Wrap-Up’s key elements, like Program Design, Financial Risk, Administration, and Claims Management. With an OCIP, the Owner is the Sponsor for the project. With a CCIP, the General Contractor is the Sponsor for the Project.

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Once you have decided to utilize a Wrap-Up program on your construction project, it’s important to decide who will Sponsor the program. Determining the best Sponsor is crucial, as this sets your project up for success.

The Sponsor is responsible for the Wrap-Up’s key elements, like Program Design, Financial Risk, Administration, and Claims Management. With an OCIP, the Owner is the Sponsor for the project. With a CCIP, the Contractor is the Sponsor for the Project.

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On Thursday 11/20/2020, the Cal/OSHA Standards Board approved emergency regulations for a COVID-19 Prevention Plan that will go into effect on Friday 11/27/2020. This regulation will apply to all Contractors and become effective for 180 days, with possible extensions.

During this 180 day period, the Board may proceed with regular rule-making actions, including a public comment period.

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You have decided to utilize a Controlled Insurance Program (CIP, also known as a Wrap-Up) for your construction project. That’s great! Now deciding who will be the Sponsor for your project is crucial for its overall success.

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Wrap-Up Insurance Programs are an attractive alternative to insure a project. These programs allow for the Purchaser (typically an Owner, Developer, or General Contractor) to reduce the overall costs of insurance while simultaneously reducing administrative costs and consolidating the management activities of the program. These products are designed to streamline the insurance process between a single Purchaser, Broker, and Underwriter. Below are 6 types of Wrap-Up Programs:

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What is an EMR? The best way to understand EMR (Experience Modification Rate) is to think of it as a Credit Score. With a Credit Score, there are Credit Bureaus that analyze your past and present borrowing history as a way to ascertain your future risk. An EMR, also referred to as (EMOD or XMOD), works in a similar manner. In its simplest definition, an EMR compares your Workers’ Compensation claims history to other companies similar in size within the same industry. A company’s EMR has a direct impact on its final Workers’ Compensation premium costs as well.

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This article was written by TSIB’s Andrew Waterbury and is published in the ABC Southern California Monthly Newsletter, The AGGREGATE, November Edition. Andrew is the Director of Surety at TSIB’s Santa Ana, CA, office servicing Orange County, Lost Angeles County, and Riverside County.

The fiscal year-end for many companies is just around the corner. Subsequently, now is a good time to begin tax planning while keeping in mind how your year-end financials will look when presented to your banks and Surety companies. Banks utilize year-end financial statements to underwrite your credit facilities as well as Surety carriers to establish your bond program throughout the year.   

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In the construction industry, Surety bonds are often an important part of a project. They help keep a project on track and ensure that there is a backup plan in place for an Owner, in case a Contractor cannot complete their work. In this situation, a Surety bond is a guarantee by a Surety company to fulfill the obligation of a defaulting Contractor. Bonds protect the Project Owner against a loss as a result of the Contractor's failure to meet this contractual obligation. Here are a few ways that surety bonds can help project owners minimize their risk.