Knowledge Corner

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As Wrap-Up Programs continue to become more popular, chances are, you have already found yourself enrolled in one. Make sure you have spoken to your Broker and removed the General Liability Wrap-Up Exclusion via endorsement on a blanket or project-specific basis.

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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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Over the course of a construction project, Contractors may be asked to submit two different types of payroll for work performed on a particular project or contract. These payrolls are known as Certified Payroll and Wrap-Up Payroll. While this may seem cumbersome, these two types of payroll are vastly different and are used for different purposes.

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Congratulations! You and your lower-tier Trade Contractors have finished all of your work on the project site. Today, we will discuss the closeout process for a Trade Contractor working on a Wrap-Up program. Each project is different, and it’s important to always start by reviewing the requirements of the program and/or the Wrap-Up manual.

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Wrap-Up programs often provide Excess coverage to Trade Contractors while working on the project. This allows the program Sponsor (Owner or General Contractor), to receive a “credit” for the Excess coverage from the Contractor.

An insurance credit is a money deduction from the cost of insurance. The Sponsor provides and pays for the project’s insurance through a Wrap-Up program. The Contractor’s corporate insurance costs are removed from their contract since the Sponsor is providing the insurance coverage.

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If you find yourself working on a Wrap-Up, there are often documents that need to be completed prior to starting on the project site. Typically, the first document completed is the Enrollment form, as this form helps the Wrap-Up Administrator create a Wrap-Up contract in their system. On this document, Trade Contractors often skip filling out their onsite start date. This can delay your approval, which can delay when you’re actually allowed on the project site but it can also affect your Wrap-Up insurance coverage.

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There are many insurance risks that can affect a construction project. If you’re building in New York, it’s important to know what your risks are and how to protect yourself from major losses. Keep reading to learn a couple of common risks in New York and how to mitigate them.

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You’ve decided to cover your project with a Wrap-Up Program! Congratulations! You have also partnered with a company to administer your Wrap-up. When reviewing their services, your Wrap Administrator shifts the discussion to their Wrap-Up Portal. You may be asking yourself, what in the world is a Wrap-Up Portal?

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New York’s construction industry presents many challenges from an insurance and risk management standpoint. One way the insurance industry has evolved to remain competitive with rising insurance premiums and high exposure indemnity claims is through the implementation of Wrap-Up Insurance Programs or CIP (Controlled Insurance Programs).

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Does the Wrap-Up exclusion found in many Trade Contractors’ General Liability program fill you with dread? This exclusion has historically been a troublesome risk transfer issue.