Wrap Insurance
Wrap-up insurance is an all in one liability policy that serves as all-encompassing insurance that protects all contractors and subcontractors working on large projects costing over $10 million.
Wrap insurance is branched into two types, owner-controlled and contractor controlled.
Owner controlled is set up and controlled by the owner to benefit the contractors. While contractor controlled is set up and managed by the contractor to extend coverage to all the contractors and subcontractors on a given project.
Benefits of Wrap insurance:
- One Insurer
- Adequate Limits
- Constant Coverage
- Control
- No Cross Litigation
- Efficiency
- Constant Services
- Decreased Markups
- Lower Long Term Cost
What is Traditional Insurance
Traditional construction projects require each individual contractor and subcontractor have their own insurance to cover themselves. Therefore each contractor and subcontractor would go to separate insurance companies to take out a policy.
Disadvantages of Traditional Insurance
- Cross Litigation
- Inefficiency
- Duplication of Costs
- Stacking of Markups
- Higher Long Term Cost
- Multiple Users
- Inadequate Limits
- Gap in Coverage
- Uninsured Contractors
Traditional Insurance
