Wrap-ups cover the risks associated with an overall development project from inception to harvest. Rather than each individual contributor handling their own risk management, an overall program is implemented for workers’ compensation, general liability, even professional construction management.
Either the general contractor or the owner provide the master policy, and then the subcontractors and various stakeholders join by certificate or additional insured status.
These arrangements are becoming more popular in response to the contracting industry. Multi-state mega-contractors hire smaller, even boutique firms of craftsmen to detail the project. Risk managers tend to over-request limits from these small firms, eliminating them from competing for the work. The crew installing marble in an elevator lobby does not require ten million dollars of umbrella coverage over a two million dollar general liability policy. Nor does the suspended ceiling company.
The general contractor does need high limits, as does the owner. They don’t need to eliminate the best craftsmen over a relatively inexpensive add-on to their own policies.
The solution is the wrap-up.
Each contractor contributes to the insurance pool with proportionate payments based on contract amount. Overall, everyone receives better protection for less money, fewer cross suits, and centralized, cooperative site safety rules. The wrap-up reduces paperwork associated with chasing down certificates and spot checking legitimacy of the paper work.
Negotiate a site insurance premium and control that cost. The better spread of risk should allow for some discounts. Reduce the number of safety inspectors and conflicting advice.
Set safety rules for the site in terms of proper attire, personal protection, and documentation of the safety program and claims.
Require the contractor with the most control of a work area to be responsible for that work zone. Enforce that authority.
Wrap-ups reduce administrative costs overall, provide security that all contractors are covered more than adequately, reduce claims among the contractors, lower project costs, and lessen the conflicting and time-consuming effects of too many loss control providers.
Check out wrap-up solutions for your next multi-million dollar project.
