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When your company starts working on a Wrap-Up, it’s helpful to gather all the required documentation you need ahead of time. This will help make your enrollment into the program much smoother. The quicker you are enrolled into the program, the sooner you can begin your onsite work.
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Once you’ve properly defined the risk being considered for a Wrap-Up, you’ll work with your broker to develop a marketing submission that will be distributed to the carrier’s underwriting team. The marketing submission tells the “story” of the project and ultimately determines if the carriers will accept the project and provide a quote.
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A Wrap-Up is an incredible tool that manages the risk presented by a construction project. This tool also returns a significant part of the project cost back to your bottom line. But is it right for every project?
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Real Estate development is a business process that focuses on the overall development and renovation of a property, whether that is an existing property or a brand-new one. When it comes to real estate development, it is important that the proper Wrap-Up insurance is placed prior to the start of the project. Finding the right insurance program is important to the overall success of the project’s efficiency.
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Understanding how insurance cost savings work on a Controlled Insurance Program (CIP), also known as a Wrap-Up, and who retains the risk/reward is important. There are several varieties of CIPs which differ by the coverages included as well as entities that purchase them (owner vs contractor). However, the savings potential is differentiated by one major factor; is the Wrap-Up in question providing two-lines of coverage or a single-line?
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Regardless of the structure selected for your project, implementing a CIP is a unique way to manage a multitude of insurance challenges that arise on construction projects. The CIP (controlled insurance program) structure provides significant advantages to a project which include:
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If this is your first Construction project, finding the right insurance program is the key to the project’s success. Traditionally, Project Owners require all of their Contractors to provide their own insurance in their bid. An increasingly popular insurance method is to implement a Wrap-Up Program.
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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.