One of the most common questions CR Solutions gets from brokers is, “How much will wrap-up insurance cost?”
There are many variables that affect wrap-up insurance costs. To answer that question accurately, items needed are as follows:
- How many projects?
- How many different GCs?
- How many phases/bid packages per project?
- Estimated # of contracts per project?
- Estimated term per project?
- What would CR Solutions involvement with insurance credits be (Insurance Credit Tracking, Insurance Credit Verification, or Insurance Credit Negotiation)?
- Does the Sponsor have prior wrap-up experience?
Here is an example of the service levels wrap-up administrators can offer:
OPTION #1 INSURANCE CREDIT TRACKING
Wrap-up administrator will collect and track insurance credits as identified by each participating contractor. Regardless of the identification method chosen, administrator will not collect contractor policy information to verify the adequacy of the provided amount; the number(s) will simply be tracked in the RMIS.
OPTION #2 INSURANCE CREDIT VERIFICATION
Wrap-up administrator will collect rating/declaration pages and other policy information from each contractor of every tier. This can be done either prior to or after award. Wrap-up administrator will verify, using this policy information, that the insurance credit (either alternate or deduct) identified by the contractor, either at time of bid or during enrollment process, is either equal to or greater than what the contractor would have otherwise paid for their own insurance. The wrap-up administrator will notify program Sponsor and/or Sponsor representative of any variances between the contractor’s offered credit and the administrator calculated credit. Program Sponsor and/or Sponsor representative will be responsible for notifying administrator of the final credit amount agreed upon with the contractor. Administrator will not be involved in the discussions that lead to this final agreed upon amount.
OPTION #3 INSURANCE CREDIT NEGOTIATION
Wrap-up administrator will collect rating/declaration pages and other policy information from each contractor of every tier. This can be done either prior to or after award. Administrator will verify, using this policy information, that the insurance credit (either alternate or deduct) identified by the contractor, either at time of bid or during enrollment process, is either equal to or greater than what the contractor would have otherwise paid for their own insurance. Administrator will work with contractor to resolve any variances between the contractor’s offered credit and the credit calculated by administrator. Once an agreement is achieved, administrator will notify appropriate party(ies) of the verified and agreed upon amount.
You can save money on insurance when you wrap it up. At CR Solutions, we focus only on doing flawless wrap-ups rather than doing many things just adequately. We focus on the needs and preferences of a very small and exclusive group.
Owners, take control of your risk. Make sure your workers are covered. Make sure your contractors and subcontractors are properly insured. Get better insurance protection with no gaps. Click here to get a free consultation to see if a wrap-up is right for your project.
