Construction projects are complex and potentially messy undertakings. Both the owner and general contractor face a swarm of unpredictable variables, and liability insurance can lead to a construction project's long-term success or disastrous ruin. That is according to a recent article from GlobeSt.com sister publication, ALM's PropertyCasualty360.
For potential financial advantages, coverage enhancements, collective coverage uniformity, and coordinated claims handling, a wrap-up policy may be the smartest choice for success.
What is a wrap-up?
What exactly is a wrap-up? It's a general liability and/or workers' compensation/employer's liability policy covering all participating contractors on a construction project under one primary insurance policy from the project's construction phase to its completed operations phase.
The traditional wrap-up policy approach was developed as a combined program with the same insurance carrier for both primary general liability and workers' compensation/employer's liability on mega-infrastructure projects. Once a predominantly standard market product, there is now a robust “GL-only” wrap-up market in the non-standard marketplace.
Having one party collectively purchase insurance for all contractors on a specific project was a major breakthrough in a world of individual policies. The individual approach is still widely used today, but due to varied carriers, rates, terms, conditions, coverages, and the unpredictable nature of future renewals, the wrap-up policy has emerged as a viable and often preferred alternative.
The opportunity to purchase a wrap-up extends to virtually any size project and segment of the construction industry. While most traditional wrap-ups cover projects of $100,000,000-plus, construction projects with costs smaller than $1,000,000 have been written on a GL-only wrap-up basis.
To read more about financial feasibility, check out the full article by clicking here.
Construction projects are complex and potentially messy undertakings. Both the owner and general contractor face a swarm of unpredictable variables, and liability insurance can lead to a construction project's long-term success or disastrous ruin. That is according to a recent article from GlobeSt.com sister publication, ALM's PropertyCasualty360.
For potential financial advantages, coverage enhancements, collective coverage uniformity, and coordinated claims handling, a wrap-up policy may be the smartest choice for success.
What is a wrap-up?
What exactly is a wrap-up? It's a general liability and/or workers' compensation/employer's liability policy covering all participating contractors on a construction project under one primary insurance policy from the project's construction phase to its completed operations phase.
The traditional wrap-up policy approach was developed as a combined program with the same insurance carrier for both primary general liability and workers' compensation/employer's liability on mega-infrastructure projects. Once a predominantly standard market product, there is now a robust “GL-only” wrap-up market in the non-standard marketplace.
Having one party collectively purchase insurance for all contractors on a specific project was a major breakthrough in a world of individual policies. The individual approach is still widely used today, but due to varied carriers, rates, terms, conditions, coverages, and the unpredictable nature of future renewals, the wrap-up policy has emerged as a viable and often preferred alternative.
The opportunity to purchase a wrap-up extends to virtually any size project and segment of the construction industry. While most traditional wrap-ups cover projects of $100,000,000-plus, construction projects with costs smaller than $1,000,000 have been written on a GL-only wrap-up basis.
To read more about financial feasibility, check out the full article by clicking here.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
