- Comprehensive insurance coverage for all participants
- Cost control
- lower premiums
- economies of scale
- elimination of redundancies
- Reduced litigation and improved conflict resolution
- Better risk management and comprehensive loss control
- Higher safety standards – a single source, standardized program simplifies jobsite security
- Control of insurance coverage and limits of liability
What sized projects benefit from a Wrap Up?
Owner Controlled Insurance Plans (OCIP) or Contractor Controlled Insurance Plans (CCIP) are most effective for projects with values larger than $100,000,000 or for projects generating at least $1,000,000 in Workers’ Comp premiums. If your company is handling multiple projects, you may also benefit from a Rolling Wrap Up – a series of projects covered under one program. There are also instances where a wrap-up may be appropriately used to provide coverage for maintenance contracts on large industrial facilities.
Who is excluded?
In some cases, certain contractors and subcontractors may be excluded due to :
- the nature of their work
- not providing direct on-site labor
- short duration of work on-site
- small contract value
Often times, punch list work is also excluded from a wrap up due to the irregularity of contractor work, which makes claims harder to track. Claims also tend to increase in the Punch List phase of a project since some subcontractors, in an attempt to maintain income during down time between jobs, have a higher rate of fraudulent claims.
What other benefits are there?
- Enhanced ability to use small/WBE/MBE contracts since a wrap-up eliminates any concern of ability to meet minimum insurance requirements
- Resolves insurance availability problems such as residential exclusions, restrictions on additional insured coverage and likely limitations to the scope of contractual liability coverage
Subcontractors sometimes dislike Wrap Ups. Why?
- Many times subcontractors worry about receiving credits from their insurance company when they are insured under a Wrap Up. However, if a subcontractor completes the OCIP/CCIP enrollment forms and provides their policy ratings pages, CR Solutions can determine exactly what costs they would have incurred to provide their own coverage in lieu of the OCIP/CCIP.
- Some subcontractors worry that loss experience can negatively affect their bid more in a wrap up than in the traditional insurance approach. In fact, Wrap Ups level the playing field in loss experience and EMR, though both are still factors in bidding.
- Sometimes the Wrap Up forms can seem daunting to a subcontractor, but CR Solutions can help subs complete the estimated insurance cost calculation with a minimum of information: estimated payroll, contract/bid amount, and insurance policy ratings pages.
