By: Darren O'Connell - Contractor/Construction Insurance Broker
Rhodes & Williams Insurance Brokers
Large construction projects present many difficulties because of increasing costs, lack of control, and rising litigation. Ensuring all of these issues are addressed while obtaining proper insurance coverage can be intimidating at best. In addition to all of the exposures you personally face as an owner or general contractor, you also have to deal with potentially different forms of insurance coverage for all of your subcontractors. That means having to review their insurance for terms, conditions and exclusions to ensure they are providing adequate limits and coverage or face a potential uninsured loss.
Given this overwhelming scenario, it's no wonder that wrap-up insurance programs have steadily increased in popularity. With a wrap-up program, the owner or general contractor supplies a single insurance program for all parties involved in the project for duration of the project term. When the owner purchases the wrap-up protection, the program is often referred to as an Owner-Controlled Insurance Program (OCIP). If the general contractor purchases the wrap-up insurance, it is known as a Contractor-Controlled Insurance Program (CCIP). However, keep in mind that regardless of what name it is referred to, the coverage is still underwritten by an insurance carrier.
There are some significant benefits to using this type of insurance.
Wrap-up insurance programs can be a cost-effective way to get the proper insurance against the risks and exposures that are inherent to your particular project. It also provides a tool for quality control by giving you the ability to coordinate the performance standards for all the subcontractors who will work for you.
Contact a Rhodes & Williams insurance broker now for more information about wrap-up insurance programs.
James P. ClyneRead more »