We were recently asked by a prospect, “What is the general consensus as to the minimum project size for a wrap-up to be feasible?” This is a question we get asked a lot.
To answer the question, it really depends on project location & type of wrap-up: bi-line (WC/GL) or mono-line (GL Only).
- For a bi-line wrap-up, single site, outside of NY, we estimate minimum project size should be $100M (Hard Cost CV).
- For a bi-line wrap-up, single site, in NY, we would say minimum project size today is ~$250M-$300M (Hard Cost CV), & financial feasibility at that volume, is questionable.
For a GL Only wrap-up, which are NOT currently available in NY & are mostly underwritten by E&S carriers, we have heard of GL-only projects less than $1M (Hard Cost CV), however these programs are mostly purchased for all of the Risk Management benefits, as they may be more costly than traditional insurance. Learn more about the benefits of GL-Only Wrap-Ups here