Understanding Your Risk When Considering a Wrap-Up: Part 2

This article is part of a compelling series brought to you by TSIB

Continuing from where we left off in Part 1, let’s explore the question of whether a Wrap-Up is suitable for every project. Having already outlined the two main categories of Wrap-Ups, let’s now delve deeper into determining the optimal choice.

Choosing the Ideal Wrap-Up Option
In light of the two categories, a Developer handling a substantial project worth over $250M may find it beneficial to consider a dedicated Wrap program for that specific project. Conversely, a General Contractor or Owner/Developer handling a consistent stream of smaller projects throughout the year would be better suited for exploring a rolling Wrap-Up, encompassing their entire portfolio of work.

Program Exceptions
While Wrap-Ups are typically available for various classes of work, there are some exceptions including:

• demo-only projects
• hazmat clean-up

Moreover, projects with a significant self-performing exposure where the program sponsor is responsible for over 30% of the work are generally not ideal candidates for Wrap-Ups. Beyond these exceptions, the viability of a Wrap-Up for your project will be determined by the carrier’s underwriting guidelines specific to that project.

Attention Required for Wrap-Ups
It’s worth noting that not every insured party is equipped to implement and manage a Wrap-Up effectively. Even with a top-notch broker and administrator, Wrap-Ups demand ongoing attention from the sponsor; they are far from a “set-it-and-forget-it” insurance solution.

Program Sponsor Involvement
While a proficient broker and administrator team handle the majority of the Wrap-Up placement tasks, the sponsor still plays a crucial role in tasks such as:

• claims reviews
• safety & loss control efforts
• regular stewardship reviews of the insurance program’s performance

While a Wrap-Up offers comprehensive and consistent coverage for all parties involved, it may not be the right fit for everyone. Those seeking a hands-off insurance solution are not suitable candidates for a Wrap-Up. However, for those willing to be actively involved, a Wrap-Up program has the potential to yield significant savings for the project’s budget.

Specializing in construction insurance services, TSIB focuses on both the Wrap placement and administration. Reach out to TSIB today to learn more!

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