Purchasing power equals better coverage, which means a more comprehensive insurance policy that covers every aspect of the job site. This translates to no gaps in coverage or expired subcontractor policies.
Available insurance coverage under the OCIP/CCIP typically includes:
- Workers Compensation and Employers Liability (Injury to Employees)
- General Liability/Completed Operations (Injury to Third Parties or Third Party Property Damage)
- Excess/Umbrella Liability (Provides high limits of insurance) not additional coverage but additional limits
When appropriate the following can be included
- Builders Risk (1st Party Property Damage to property that will become a permanent part of the project)
- Professional Liability (Covers liability arising out of architect, design, and engineering errors)
- Environmental Liability (Covers liability arising out of environmental impacts)
- Contractor Default Insurance (Covers default of subcontractor, a replacement for surety bonds)
Dealing with an ever changing market, residential exclusions
Large multifamily residential complexes and subdivisions are becoming more and more difficult to cover. Many insurance carriers have dropped residential coverage for contractors due to excessive claims, or the residential coverage is still available but at a prohibitive price. The purchasing power of a wrap-up allows the coverage to be purchased and allows smaller contractors access to bid on a project otherwise unavailable to them.
Subcontractors will still be required to carry certain insurance coverage for the protection of themselves and the project team. These include:
- Contractors Equipment (Cranes, Mobile Equipment, Small Tools)
- Auto Coverage
- Workers Compensation for activities unrelated to this project
- General Liability for activities unrelated to this project
- Excess / Umbrella Limits as required by contract
