Wrap-up Liability Insurance For Construction Projects
Whether it’s a new build, addition or major renovation wrap-up liability insurance for construction projects is an important way to protect against bodily injury or property damage to third parties that could occur during a construction project. With construction work being done pretty much everywhere and particularly when it is happening in and around populated areas its important to understand how specialized construction insurance called wrap-up liability insurance for construction projects works and the benefits.
What is Wrap-Up Insurance for Construction Projects?
Wrap-up insurance allows a construction company owner or contractor to protect his or her business and various other contractors involved in a construction project under one single policy. Wrap-up liability insurance for construction projects can be purchased for a portfolio of work or projects or it can be purchased on a project specific basis. In addition, wrap-up liability insurance for construction projects can also be, and often should be, purchased by the owner of the property where the construction is taking place.
What Are the Benefits Of Wrap-up Liability Insurance For Construction Projects When Purchased By Contractors?
The business owner (lead or general contractor) purchases wrap-up liability insurance for construction projects for all contractors and subcontractors involved in a construction project or projects. Buying wrap-up liability insurance for construction projects for all participants provides peace of mind to all parties that appropriate insurance is in place for all parties involved in the project. Also, by having a single insurance carrier for the project, the risk of claims is lower and claim resolution tends to be less expensive. In addition, when contractors buy wrap-up liability insurance for a specific project it helps keep their operating commercial general liability free from losses., which can be particularly useful for higher risk projects.
What Are the Benefits Of Wrap-up Liability Insurance For Construction Projects When Purchased By The Property Owner?
General contractors typically do and should carry commercial general liability insurance for their operations and the work of their subcontractors so having the general contractor place wrap-up liability insurance for construction projects on each project can be redundant and will increase the project cost. However, when wrap-up liability insurance for construction projects is purchased by the property owner the policy is in their name and the limits of that policy are dedicated to only the owner and not shared/replied upon by all the parties involved. In addition, when the property owner purchases the policy themselves they avoid any markups or insurance surcharges that a contractor might include in their project pricing.
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