image credit: KomootP/shutterstock.com
Wrap-up insurance programs are becoming more common in the construction industry, but many owners and contractors are unfamiliar with how they function. What is wrap-up insurance and how exactly does it work? This blog post will discuss what a wrap-up policy is, the two types of wrap-up insurance programs, and the benefits they can have for your construction company.
What is a wrap-up insurance program?
Simply put, a Wrap-up insurance program changes the way liability and workers' compensation insurance is procured for large construction projects. Traditionally, subcontractors provide their own insurance, as required by the owner, for a particular project. In a Wrap-Up insurance program, coverage for Workers Compensation, General Liability and Excess Liability is provided for the length of the program for all enrolled participants.
There are two common types of wrap-up coverage: OCIP and CCIP
1. Owner-controlled insurance program (OCIP): The program is sponsored by the Owner of the project. Benefits for this program include cost and claim control, as well as improved safety and reduced litigation.
2. Contractor-controlled insurance program (CCIP): The program is sponsored by the General Contractor. A couple of benefits for this program include premiums with all of the costs—both variable and fixed—excellent return-to-work programs, and established crisis management protocols.
What are the benefits of a Wrap-Up insurance program?
Overall, sponsors of controlled insurance programs can see multiple benefits of a wrap-up insurance program, including the following:
- Broader Coverage
- Safety
- Lower Costs
- Increased Profits
In all types of Wrap-Up insurance programs, the backing of a strong broker and successful administration play a key role! Interested in learning more about the different Wrap-Up programs available for your next construction project? Download the TSIB eBook, "The Best Fit for Your Project: CCIP vs. OCIP" today!
