"It’s A Wrap!" Insuring Construction Projects Through OCIPs And CCIPs, Part 3

Part 3:  Coverage Issues under a Wrap Up Program

Part 1 explained the nature of a unified wrap up insurance program for a construction project, and contrasted it with the more traditional approach to insuring project risks.  Part 2 addressed the pros and cons of using a wrap up program.  Several key coverage issues under a wrap up program are addressed below.

            1.         Who is covered under the wrap up program?

Generally speaking, the greater the number of enrolled participants, the more successful the wrap up program is likely to be.  The owner/developer, the general contractor, and most subcontractors will be covered under the wrap up program.  Certain subcontractors may not be covered, and they may need to furnish appropriate individual coverage suitable to their roles in the project.  For example, wrap up coverage may be limited to operations at the project site and thus may exclude subcontractors or suppliers conducting off-site