Wrap-up programs provide dedicated project coverage from one insurance program, with adequate limits, consistent coverage, more control, no cross litigation, efficiency, consistent services, promotion of DBE/MBE/WBE/SBE contractors, and decreased markups.
The result is a more efficient, cost-effective risk management program covering your project. Learn more by watching the video below:
How does it work?
When sending out bid packages, the sponsor instructs all bidding contractors to identify insurance costs separately from other costs.
As the sponsor awards contracts it keeps the money it would have paid contractors to bring their own insurance.
Efficiencies and economies of scale allow the sponsor to purchase the wrap-up for less than or equal to what it would have paid all the contractors to bring their own insurance.
But the real savings are found by running a safe project, with favorable loss experience. Any loss that occurs at or emanates from the project site is paid by the wrap-up, subject to policy terms and conditions.
With each occurrence, variable costs increase, increasing the project’s insurance cost, reducing the amount that goes back to the sponsor. But wrap-ups typically improve loss experience with centralized safety programs.
After construction is complete, claims can occur and increase variable costs, further diminishing the collateral available for return to the sponsor.
Six to eight months after completion, the insurance carrier audits the project to determine final costs, as they are typically adjustable on WC payroll or Construction value, which aren’t finalized until project completion. Annually, the carrier reviews losses and security calculations to determine if collateral can be returned. Typically three to five years after completion, the insurance company begins returning collateral, decreasing the insurance cost and increasing savings for the sponsor.
Our mission is to be the best wrap-up administration group in the country and to provide innovative solutions to information management. Sponsor your next wrap-up with CR Solutions and let us “Show you the Money!
Learn more details about how to make money with a wrap up by downloading our guide, “How to Make Money With a Wrap-Up,” get your copy here.