Since we focus solely on the commercial real estate segment, this allows us to craft specialized insurance programs for commercial developers and owners of stabilized properties that are adding to their portfolio with new ground-up construction projects. For many projects, particularly large multiyear projects, significant savings can be realized with a WRAP or OCIP (Owner Controlled Insurance Program) which provides coverage in the name of the owner, but extends coverage to the general contractor and all subcontractors (including subs of subs).

Under the traditional model, all parties typically would need to obtain their own insurance for their work and Owners/GC’s would need to rely on risk transfer indemnification agreements, additional insured and other endorsement languages so that when a claim occurs the downstream party (and their insurer) are obligated to respond to the claim. This structure can be very problematic. An example is a subcontractor may have a policy with indemnification language, depending on the state, a multifamily exclusion may exist and all of the responsibility of damages would be left to the GC and Owner(s). The WRAP takes care of this in that all parties are covered under one GL policy to eliminate this and other gaps.

Some of the benefits of a WRAP are as follows:

• Assured coverage for all subcontractors
• One defense representation in the event of a loss
• Removal “workmanship” or “faulty” work exclusions
• Completed Operations coverage extended to the Statute of Repose
• Subcontractor premium carve-out. Subcontractors are required to deduct their insurance cost from their bid
• No fault allegations to be determined in the event of a loss
• Common goals shared by all subcontractors – cooperative risk management, safety and quality work.
• A Third Party Administrator eases troublesome subcontractor/contractor coordination