This post is part of a series sponsored by TSIB.
Construction projects present unique risks and complexities that differ significantly from your overall insurance needs as a real estate developer. Are you sure your risk is covered, whether it’s an office, commercial, industrial, mixed-use or retail project? It is critical to mitigate any project risk so that your stakeholders – employees, customers, tenants and partners – are successful.
A controlled insurance program or Wrap upis a powerful tool that real estate developers can use to reduce the risk of their construction project. A wrap-up bundles a variety of insurance coverages into one program. Instead of the various contractors working on your project purchasing their own insurance, you, as the project owner, purchase insurance for the entire construction project and enroll eligible contractors in the program. Wrap-Ups help you manage your project risk by providing:
- More consistent insurance coverage
- Increased project-specific limits
- Expanded coverage of completed operations
- Increased minority and DBE participation
- Less cross-compliance litigation
- Potential cost savings for the owner
A graduate program consists of two parts: placement and administration.
placement
Insurance is taken out during the placement phase of the wrap-up. The project owner or their broker negotiates and purchases insurance coverage for all eligible contractors working on the project.
Administration
The management phase of the summary can be tedious. This includes managing all administrative requirements, from daily contact with contractors to managing program records, developing documentation and more. This is an important part as it ensures your contractors can start work when it matters, thereby preventing project delays. Many owners choose to have this part of the wrap-up handled by an external wrap administration service team.
Want to learn more about wrap-ups for your upcoming project? Speak to James today and arrange an appointment for a free feasibility study.
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2024-05-29 16:04:49
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