Owner - Contractor Controlled Insurance Programs
We specialize in large Owner Controlled or Contractor Controlled "Wrap-Up" Insurance Programs. Under a Wrap-Up all contractors and sub-contractors are insured under a single uniform program that stresses loss prevention and claims management.
The key to the success of a wrap-up is control, control of the structuring and implementing the essential insurance lines, control of sub-contractors in all tiers through their contracts, control of site security, control of loss prevention programs and claims management, and control of the administration of your brokers/carriers wrap-up team.
Large premium savings can be realized by aggregating one's purchasing leverage on a major construction project. Most of our engagements arose from owners/developers looking to minimize the cost of construction. Since acquiring this expertise, we have also been retained by major general contractors looking to utilize the purchasing technique for their own advantage.
Wrap-Ups may not make sense for all projects. When it does however:
- Economies of scale traditionally produce significant premium savings.
- Project management is streamlined by coordinating a number of on-site functions (loss control, safety, security, record keeping, etc) under a single authority.
- In most cases, insurers are willing to offer broader coverage than would otherwise be available to individual contractors and subcontractors.
- There is less inclination for cross-litigation involving two or more contractors on the project, and less likelihood of subrogation claims and cross-liability suits among subcontractors and their insurers.
- Owners obtain broad protection for enrolled contractors and subcontractors at all tiers.
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