The Advantages of Development Wrap-Up Packages


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Development tasks can contain many contractors and sometimes function on skinny revenue margins. Wrap-up applications are an important software for danger managers to contribute to a undertaking’s success. Not solely do they scale back bills, however additionally they present improved security requirements, and higher protection – making them an important software for savvy house owners and contractors.

The standard strategy of shifting danger from house owners to contractors or subcontractors by contractual agreements will be advanced and produce unexpected penalties. Not solely is a standard mannequin costlier, however legal responsibility disputes might emerge because of conflicting contractual provisions and insurance coverage phrases and circumstances. This will result in pricey and prolonged cross litigation between numerous events concerned within the undertaking.

Happily, house owners and common contractors have one other resolution – wrap-up applications that successfully handle all dangers below a single insurance coverage program.


Typically known as managed insurance coverage applications (CIP), wrap-up insurance coverage applications are centralized insurance coverage and loss management applications supposed to guard the undertaking proprietor, common contractor and subcontractors below a single insurance coverage program for the development undertaking.

Wrap-up program benefits embrace:

  • Ensures uniform protection for all enrolled contractors. 
  • Coordinated and constant loss prevention companies for all taking part contractors.
  • Coordinated medical remedy to handle accidents.
  • Broad protection with limits mandatory to fulfill investor’s necessities for all individuals.



Below an OCIP, the undertaking proprietor sponsors and controls this system.


Below a CCIP, the final contractor sponsors and controls this system.

Whereas wrap-up applications are most incessantly used for big, single-site tasks, a rolling wrap-up can be utilized to insure a number of tasks below a single program.


Wrap-up applications can present a number of advantages, together with:


Wrap-up applications are designed to cut back the general value of insurance coverage by offering what quantities to quantity reductions for your complete undertaking.

CONSOLIDATED COVERAGE: Below the standard strategy by which events procure their very own insurance coverage, it may be troublesome to find out whether or not contractors and subcontractors have obtained the proper limits and varieties of protection. Against this, below wrap-up applications, the controlling entity exerts better management over the categories, scope and limits of protection.

HIGHER LIMITS: Most wrap-up applications have excessive limits overlaying all enrolled contractors. Tasks with no wrap up have particular person limits for every contractor which can be insufficient.

CENTRALIZED SAFETY AND RISK MANAGEMENT: Program sponsors, working at the side of Kapnick, the provider, and security professionals, can keep centralized security and danger administration companies. Doing so can scale back the frequency and severity of harm and property injury claims, thereby lowering insurance coverage prices for the undertaking.

EFFICIENT CLAIMS PROCESSING: As a result of a single provider is the management level for managing claims, the method tends to be extra environment friendly below wrap-up applications.

REDUCED DISPUTES AMONG INSURED PARTIES: By overlaying all of the events on a undertaking below one coverage, wrap-up applications scale back protection disputes and subrogation points between insureds and insurance coverage carriers for lined claims that happen on the job web site.

ACCESS TO PROJECTS: For contractors and subcontractors, wrap-up applications can present them with entry to tasks that they might not have in any other case been capable of correctly insure.


At Kapnick, we may help. We have now developed a specialised workforce of in-house, development wrap-up consultants to design, implement, and handle a variety of wrap-up applications. We provide direct help not solely to the wrap-up sponsor, however to particular person contractors to help their enrollment and involvement in this system. Our workforce works exhausting to make sure our wrap-up applications are simple to navigate, serving to with enrollment and shut outs, guide help, security and claims, payroll, and naturally, putting and managing the protection.

In case you are all for evaluating a wrap up on your subsequent development undertaking, attain out at [email protected] or 888.263.4656! Our consultants could be comfortable to stroll you thru an analysis and wrap up professional forma.



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