What is a wrap up?
Benefits
• Comprehensive
insurance coverage for all
•
Higher limits of coverage
•
Safer construction site
•
Reduced litigation
• Elimination
of redundancies in both costs and services
• Economies
of scale
• Allows
for more competitive use of MBE and WBE
companies
When
to Use a Wrap Up
•
When is a Wrap-Up a good idea?
How
It Works
•
Gathering the players
•
Getting started
FAQ
- From Your Perspective
• Sponsor
•
Contractor (aka subcontractors)
• Broker
|
FAQ >
Sponsors
As an Owner or Contractor, how can I
benefit from a Wrap Up?
Wrap Up insurance offers:
• Comprehensive insurance coverage for all participants
• Cost control
– lower premiums
– economies of scale
– elimination of redundancies
• Reduced litigation and improved conflict resolution
• Better risk management and comprehensive loss control
• Higher safety standards – a single source, standardized
program simplifies jobsite security
• Control of insurance coverage and limits of liability
What sized projects benefit from a Wrap Up?
Owner Controlled Insurance Plans (OCIP) or Contractor Controlled
Insurance Plans (CCIP) are most effective for projects with
values larger than $100,000,000 or for projects generating
at least $1,000,000 in Workers’ Comp premiums. If your
company is handling multiple projects, you may also benefit
from a Rolling Wrap Up – a series of projects covered
under one program. There are also instances where a wrap-up
may be appropriately used to provide coverage for maintenance
contracts on large industrial facilities.
Who is excluded?
In some cases, certain contractors and subcontractors may
be excluded due to:
• the nature of their work
• not providing direct on-site labor
• short duration of work on-site
• small contract value
Often times, punch list work is also excluded from a wrap
up due to the irregularity of contractor work, which makes
claims harder to track. Claims also tend to increase in the
Punch List phase of a project since some subcontractors, in
an attempt to maintain income during down time between jobs,
have a higher rate of fraudulent claims.
What other benefits are there?
• Enhanced ability to use small/WBE/MBE contracts since
a wrap-up eliminates any concern of ability to meet minimum
insurance requirements
• Resolves insurance availability problems such as residential
exclusions, restrictions on additional insured coverage and
likely limitations to the scope of contractual liability coverage
Subcontractors sometimes dislike Wrap
Ups. Why?
• Many times subcontractors worry about receiving credits
from their insurance company when they are insured under a
Wrap Up. However, if a subcontractor completes the OCIP/CCIP
enrollment forms and provides their policy ratings pages,
CR Solutions can determine exactly what costs they would have
incurred to provide their own coverage in lieu of the OCIP/CCIP.
• Some subcontractors worry that loss experience can
negatively affect their bid more in a wrap up than in the
traditional insurance approach. In fact, Wrap Ups level the
playing field in loss experience and EMR, though both are
still factors in bidding.
• Sometimes the Wrap Up forms can seem daunting to a
subcontractor, but CR Solutions can help subs complete the
estimated insurance cost calculation with a minimum of information:
estimated payroll, contract/bid amount, and insurance policy
ratings pages.
A subcontractor can benefit from a Wrap Up with:
• protection from rate increases during the project
span
• coordinated claims
• safety programs
• higher limits
• Protection from cross litigation
Still have more questions? Don’t
hesitate to send
us a note.
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