What is a Wrap-Up?
A Controlled Insurance Program (CIP) or Wrap-Up is an effective way to improve the safety and reduce insurance costs of large, multiple-contractor, construction projects. With a Wrap-Up, a single sponsor (either an owner or construction manager/general contractor) purchases insurance to cover the owner, construction manager and every contractor and subcontractor working on a project.
Why a Wrap-Up?
A Wrap-Up offers a structured way to consolidate risk, translating into significant cost savings. The ROI comes from efficiencies created through simplified program administration, reduction of overlapping coverage, improved safety and claim management and streamlined operations from a single-point-of-contact. Additionally, a Wrap-Up offers the opportunity to Disadvantaged Business Enterprises by removing the standard insurance requirements which may not otherwise be attainable from smaller contractors.
When is a Wrap-Up right?
Wrap-ups provide the most benefit on construction projects employing many subcontractors. Generally, if total construction costs exceed $100 million, a Wrap-Up can provide significant savings. As a part of our consulting services, a team of Conner Strong & Buckelew professionals will evaluate a client's needs by undertaking a feasibility study to determine whether a Wrap-Up is the right fit.
What's the difference?
The average insurance cost on projects with individual contractor's providing their own coverage is between 3 to 4 percent of hard dollar construction costs. With a Conner Strong & Buckelew Wrap-up, that average is closer to 2.5 percent. So, whether your construction costs are $100 million or $2 billion, you should see significant savings.