All construction projects require insurance. On average, about 21% of job-related fatalities occur on construction sites. Accidents can be a major problem on construction sites and accidents can lead to serious and fatal injuries.
How can you ensure that everyone is insured? One way that you can insure everyone under the same policy is through wrap up insurance.
What Wrap Up Insurance Is
Construction wrap up insurance is a loss control and insurance program that protects subcontractors, contractors and the project owner against construction risks. In many cases, every contractor and subcontractor may have his or her insurance policy. This can cost more, in the long-run and also lead to gaps in insurance policies.
Types of Wrap Up Insurance
In an owner controlled insurance program, or OCIP, the project owner is the person who sponsors and controls the program. All other contractors, including the general contractor are named insureds.
Contractor controlled insurance programs or CCIPs are policies that the general contractor sponsors. As the first named insured, he or she has control over the program. All contractors, subcontractors and others covered under the policy are listed as insureds. The owner of the project may be the named insured or an additional insured.
While wrap up insurance is typically used for large projects, you can also use it if you have multiple projects to complete.