Project Coverage Methods: Traditional Insurance vs. CIP
Providing insurance for a Construction project can seem overwhelming at times! Basically, there are two options that you have: the Traditional Insurance Approach and a Consolidated Insurance Program (CIP) also known as a Wrap-Up. So how can you be sure that you are properly protected?
Traditional Insurance requires each contractor on the project to provide their own insurance and include the cost of the insurance in their bid. However, CIP’s consolidate insurance coverage for all project contractors into one insurance program.
Here are some points to consider when choosing between CIP or Traditional Insurance:
- Coverages and Limits required for the project.
- CIP Advantages vs Challenges.
- Traditional Insurance complexities and potential gaps.
Overall it’s important to remember that each method has its own positives and negatives. Depending on your project's goals, your Insurance Broker should be able to advise you on which option makes the most sense for the success of your company and project.
Are you looking to to learn more about CIP and traditional service? Download our latest eBook to learn about the differences between CIP and Traditional insurance. Find out which is the right fit for your next construction project. If you have any additional questions, please give TSIB a call today at 201-267-7500!
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