Knowledge Corner

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As the Sponsor (Owner, or General Contractor) for a Wrap-Up program, you should be aware of the types of reporting your Wrap Administrator should be providing. In addition to a daily report with your project’s contractors, other types of reporting are a big part of your Administrator’s duties. It starts with monthly, quarterly, and annual stewardship reports based on the needs of the Sponsor.  Critical information in these stewardship reports includes: timelines, open items and responsibilities, loss experience and claim reserves, if available, Wrap-Up Enrollment schedules, any existing or anticipated problems/challenges, and accomplishments.

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As the owner of a large construction project – whether it is a new mixed-use retail space, new hospital or new college library, there are many decisions to make to help the project run smoothly.  You have decided to utilize a Wrap-Up, or Controlled Insurance Program (CIP), for your insurance which is a great start.

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Contractor’s working on a Controlled Insurance Program (CIP or Wrap-Up) jobsite, are often required to enroll in the Wrap-Up program. When a contractor submits enrollment information, essentially, they are applying to the program’s insurance carrier for a policy. The program’s carrier analyzes the contractor’s information and the history of any claims. Then the carrier approves or rejects the enrollment based on the level of risk they are willing to incur by insuring the contractor. If the contractor is approved, the carrier will issue the company an insurance policy.

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Having an effective closeout strategy is critical to successfully completing your Wrap-Up program. The overall process of a program closeout starts as soon as early trades complete their work on the project.