General Liability Wrap InsuranceIf this is the first time that you're checking into Wrap policies, you've come to the right place. Due to recent changes in the marketplace there are many new options that were not available as early as last year.
If you already have experience with Wraps, you may be surprised to find what SCIS can do for you. Specialty Contractors Insurance Services, Inc. has General Liability Wrap Programs that start as low as $50,000 for $1,000,000 of coverage. All we need is a moment of your time & you'll find it's time well spent.
Wrap OverviewA Wrap, also known as an OCIP or CCIP (Owner-Controlled Insurance Policy or Contractor Controlled Insurance Policy), is a commercial general liability insurance policy issued for a specific project which includes coverage for the builder/developer, general contractor, and subcontractors performing trade work on the project. It will typically include third-party liability coverage for the period of time the construction project is going on, as well as extended "construction defect" coverage for the structures once they have been completed and sold, for a period of up to ten years post-construction. Limits in coverage start at $1,000,000 per occurrence, with additional coverage available in increments of $1,000,000 (for additional premium of course). All wrap policies are not the same. In fact, each insurance company uses unique "manuscript" wording in their policies which may limit coverage. You will have choices when it comes to the type of coverage you buy. It is important to work with a broker that understands the differences in coverage and can explain how they effect the cost of each policy. That broker is SCIS. When considering all of the companies involved in order to complete a construction project, it can be overwhelming. There's the developer, general contractor, sub contractors, architects, engineers, suppliers…the list can go on. All of whom are expected to provide their own insurance for the project. This, of course, made sense…the company responsible for the loss, their insurance should step up to the plate. Here's where the problems arose…with the numerous companies involved in each construction project along with the differences in each insurance policy wording & the interpretation by the courts, it became a game of "Dog Eat Dog". This was most evident in cases involving multi-unit residential construction (i.e. condos, townhouses, & large tract subdivisions). Homeowners associations, along with the support of multiple homeowners, sued the builders who sued the sub contractors who sued suppliers… and so on. Before long insurance carriers for both general contractors and sub contractors alike excluded all coverage that had anything to do with these types of projects. This resulted in developers without contractors to do the work…which in turn resulted in the "Wrap". In many cases general contractors and sub contractors can't work on certain types of residential projects unless there is a wrap, therefore you may not have a choice. Their current insurance almost always specifically excludes multi-unit residential & mixed use commercial/residential projects & they are not willing to jeopardize their business by working on a project without insurance. Also, many lenders and municipalities require wraps for these certain types of multi-unit residential & mixed-use commercial/residential projects. Besides the fact that there are no options other than a wrap, there are some advantages to using a wrap, including:
What Does it Take to Get a Quote? Choose the right broker... one with experience and knowledge of the wrap marketplace. Premiums are high enough for these types of policies, no need to waste more money because you took a chance with a broker who is unfamiliar with wraps. First impression matters! Once insurance company underwriters deem your project as "risky" it will take a miracle to change their minds. SCIS makes sure that your project makes a great first impression. After the underwriters have labeled your project as a good risk and see that you're represented by a company they know specializes in wraps, they'll be more willing to apply discounts to your quote and do whatever it takes to get it sold. SCIS has access to every wrap program available in California, Nevada, Oregon, Colorado, and soon…Washington. Let us help you put more of your profit into your pocket instead of the insurance companies'. Just fill out the contact us form and we'll contact you same day. If you're ready for a formal quote, please complete the application or give us a call @ (877) 987-5667. What does the Application Consist Of? Most insurance companies that offer wrap policies in California have the same basic requirements:
How Do The Insurance Company Requirements Vary? Every insurance company that writes wrap policies in California has unique set of "underwriting guidelines." Based on the specifics of your project there will be some companies that will be a better fit than others, for example one company will only look at projects where there are no more than 16 units per structure, while others prefer much larger projects. Each company also has its own "minimum premium" which sets the bar on what the lowest price available is. It is always our goal to get your premium as close to the minimum premium as possible. There are a number of outside risk management services that may be required by insurance companies when you purchase a wrap. These requirements vary depending on the insurance company and include:
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