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As an owner with a construction project and an eye towards risk management, you might not realize there are different Controlled Insurance Programs (CIPs) or Wrap-Ups to choose from. General Liability (G/L Only), Single Project, Full Wrap, Rolling Program, and Maintenance Program are the main choices. Let’s examine the benefits of a G/L Only Wrap-Up.
This CIP offers project-specific general liability coverage and a single policy for all insured. Sponsored by the owner or contractor, it covers all eligible contractors. A main benefit is that this Wrap-Up offers owners enhanced coverage protection with less administrative burden. Specifically, there is no payroll tracking, and reporting is less with this type of program. In addition, it provides the same superior risk management capabilities as a “full” wrap but without the potential financial risk associated with Workers’ Compensation.
Another benefit is their coverage flexibility. G/L Only CIPs are commonly found in hi-rise residential construction. The standard CIP market has exclusions for residential work, but G/L only insurance markets are more flexible. In fact, in some regions of the United States, a G/L only CIP may be the only way to insure a residential project. This coverage flexibility is a result of their usual placement in the Excess & Surplus lines markets where terms and conditions can vary widely.
Lastly, a G/L Only Wrap, like all controlled insurance programs, allows for cost savings over traditional insurance. For example, these Wrap-Ups typically carry a low deductible—either $25,000 or $50,000—and do not require collateral.
With their ease of administration, broader coverage and a saving potential, G/L Only Wrap-Ups have gained in popularity and grown into the commercial market as well. Interested in learning more about a G/L Only Wrap-Up? Contact TSIB today!