Take Control of Your Construction Projects
Owner controlled insurance programs (OCIP), commonly known as “wraps” or “wrap-up insurance,” are changing the way contractors and owners insure large projects.
Traditionally, project owners require contractors to provide their own insurance for a particular project. With OCIPs, a single policy “wraps up” all of the worker compensation and general liability insurance for all onsite contractors, including project owners, construction managers, general contractors, and subcontractors.
Benefits of Wrap Insurance
Wrap insurance policies ensure that everyone who steps onto the job site is covered. Project owners don’t need to worry about additional insured endorsements that restrict coverage or subcontractor policies that are deficient in coverage or limits. A single policy means insurance is straightforward and more cost effective.
With OCIP, project owners typically pay one single insurance premium. In return, all participating contractors reduce their bid prices.
Contractors typically factor in the cost of insurance into their bids, marked up for profit and overhead. Because the contractors will be covered under the single wrap policy and not their own policy, the project owner (or other wrap sponsor) uses bid reductions to fund the costs of the single insurance policy.
Wrap insurance allows project owners to have more control over a project’s insurance coverage. When contractors provide their own insurance coverage, there could be varying limits and exceptions to each participants coverage.
By obtaining an OCIP, a project owner can take control over the coverage and choose higher levels of protection that subcontractors may not otherwise be able to obtain.
With traditional contractor insurance, claims are processed with multiple insurers, policy holders, and mediators. With a single wrap policy, there is only one insurer in the event of a claim. That means more efficient claims processing with fewer delays, reduced legal costs, and fewer cross-complaints.
Take control over your next project with an owner controlled insurance program, or wrap insurance, and you can have more control, more efficiency, and more cost savings than ever before. You purchase construction materials in bulk, and now it’s time to get your construction insurance coverage the same way.
Contact us today for more information on wrap insurance and to get a quote for your next project.