IDENTIFYING A POTENTIAL WORLDWIDE CONTROLLED INSURANCE PROGRAM
Check to see if your project meets the criteria in our When is a Wrap-Up a Good Idea? section.
Interested in learning about international wrap-up programs? CR Solutions has programs in place in 28 countries. Download our informative guide, A Guide to Worldwide Wrap® Programs click here
Find out the benefits of Worldwide Wrap® vs Traditional Insurance with this guide, download instantly here.
THE OPPORTUNITY
We live in a pivotal decade where construction has gone global. Today, successfully planning, financing, constructing and operating large-scale construction projects is completely different than it was 10 years ago. Mega projects have become a multinational enterprise. With over 83 percent of growth in global gross domestic product (GDP) expected to occur outside the United States over the next five years, and the rapid urbanization of emerging markets, it is imperative that more U.S. metros and firms (particularly middle market firms) expand their presence abroad.
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CR Solutions has programs in place in 28 countries
Growth in the global construction industry is on an unprecedented trajectory, fueled by the growth of cities and accelerated development in emerging markets. In an increasingly global society, construction projects are no longer bound by borders, bringing both an interconnectedness and a complexity. For the first time ever, rising economies are hosting the majority of the world’s construction projects. In less than a decade, emerging markets have gone from posting a third of the world’s construction work to just over half of the industry’s total revenue. And in the next ten years, nearly two thirds of all construction activity will take place in these rapidly developing nations.
As opportunities for cross border project delivery continues to evolve, so do the complexities. More global projects likely bring an increased level of risk. When the complexity of multiple jurisdictions is introduced, different legal exposures, contractual obligations, tax and compliance issues, and cultural norms such as worker safety, must be taken into consideration.
Still, one claim against a single contractor can put billions of dollars at risk. “The complexities in today’s projects: a multitude of international firms performing design, construction, and maintenance services, longer supply chains, thousands of workers in camps on foreign soil, and constructing along accelerated delivery schedules, all give rise to the chances of litigators winning their claims. A short while ago, litigators were limited to one or two countries. Now, with numerous international firms involved in a single project, there is a greater chance that lawsuits will have a more costly settlement. A refinery project in Angola may have designers that are European, financiers from the United States, and a joint venture general contractor from Asia. Because one member of a large team is from the United States, the American court system becomes a viable jurisdiction.”
THE SOLUTION
For those looking to lead in this increasingly global industry, world-class risk management strategies are key. The most effective protection for construction firms looking abroad is the ability to make well-informed decisions in identifying and mitigating both domestic and foreign risk exposures. That is why it is vital for global construction firms to understand the intricacies involved— for all— from project conception to completion.
FOR THE WORLDWIDE WRAP® SPONSOR
- “Turnkey” Solution to Sponsors that want to control their own GL construction exposures.
- Named Insured Status
- Fixed Costs for Term of the Project
- Limits Dedicated to the Project (Premise & Completed Operations Tail)
- Consistent Coverage
- Enhanced Safety and Claims Performance for the project
- Ability for Sponsor to hold direct contracts with subcontractors (as necessary)
Worldwide Wrap® is a wrap-up product that will be offered to Sponsors (either General Contractors or Owners) that want to control the General Liability exposures of their projects. By having the project insured with Worldwide Wrap®, it allows for confirmation that the GL Coverage in place on the project is adequate in terms of coverages & limits available. Worldwide Wrap® can offer primary and excess coverages with up to $100,000,000 in capacity on an occurrence basis.* Aggregates can apply per project and defense costs are outside the limits. Policies can be written for the full project term and can include product/completed ops extensions up to 10 years.* Worldwide Wrap® can also be endorsed to include any contracts the Sponsor holds directly with subcontractors, a fairly common practice on construction projects. With this product, asset protection is available throughout the course of construction operations and continues after the project has been put to its intended use. *Disclaimer: All parameters are subject to underwriting considerations and assessments and are subject to change. Additionally, local placed policies are also subject to local regulation in these jurisdictions.
Find out the benefits of Worldwide Wrap® vs Traditional Insurance with this guide, download instantly here.
