Developing together

This post is part of a series sponsored by TSIB.

Construction projects come with unique risks and complexities that are distinctly different from your overall insurance needs as a real estate developer. Whether your project is office, commercial, industrial, mixed-use or retail, are you sure your risks are covered? Mitigating project risks is critical to ensure your stakeholders, including employees, customers, tenants and partners, can thrive.

managed insurance programs, or summary, Wrap-Up is a powerful tool that real estate developers can use to mitigate risk on their construction projects. Wrap-Up consolidates numerous insurance coverages into one program. Instead of having the various contractors working on the project procure their own insurance, as the project owner, you purchase insurance for the entire construction project and enroll qualified contractors in the program. Wrap-Up helps manage project risk by providing:

• More consistent insurance coverage
• Increasing project-specific limits
• Expanded scope of completed work
• Increased participation of ethnic minorities and DBEs
• Fewer cross-compliance lawsuits
• Potential cost savings for owners

The Wrap-up Program has two parts: deployment and administration.

Placement
Insurance is purchased during the placement phase of wrap-up: the project owner or their broker negotiates and purchases insurance coverage for all eligible contractors working on the project.

management
The administrative phase of the wrap-up can be overwhelming. This involves managing all administrative needs, from daily contact with the contractor to program paperwork, document creation, and more. This is a critical part because it allows the contractor to start work when it matters most and prevents project delays. Many owners choose to outsource this part of the wrap-up to a third-party wrap management services team.

Want to learn more about Wrap-Ups for your upcoming project? talk Contact James today to schedule a free feasibility study.