Beach & O'Neill Insurance Associates offers exclusive access to some of the most popular WRAP products offered in California and Nevada. WRAP insurance can fall under the definition of either being an Owner Controlled Insurance Program (OCIP) or Contractor Controlled Insurance Program (CCIP). Under a WRAP policy generally the developer of a project, or general contractor, takes out a project specific policy to cover all subcontractors on one master policy which includes both premises liability and product completed operations coverage. Because the WRAP is a policy specifically taken out for a scheduled, or listed project, it is not intended to be renewed once the project is complete. For this reason, all WRAP policies we offer include a 10 year completed operations extended reporting period.
Generally WRAPs are taken out for either large projects where the developer or contractor wants direct control over the insurance for the project, or in situations where the market does not support traditional insurance for high risk projects. Projects that are good candidates for WRAP coverage include:
- New ground up condo or townhouse projects
- Tract home developments or infill subdivions
- Loft style housing, or mixed use projects integrating commercial and residential elements in the project
- Unusual projects like co-housing developments or other types of planned unit developments
- Large commercial projects or large high valued homes
"Pay as you sell" WRAP Products
One of the things that sets our WRAP products apart from other products offered in the market is the ability to offer "pay as you sell" WRAP coverage. Under this type of WRAP, your premises liability coverage is funded upfront for the length of your policy term, but your product and completed operations premium is deferred until the units are completed and sold. "Pay as you sell" WRAPs can be customized for different situations and we have written policies that charge the product liability premium by either individual unit closing, phase, or release. Under this type of policy, the upfront costs to build the project are much lower because the product liability premium can be spread out over the lifetime of the project. For more information on this, and other innovative WRAP projects, please contact our office.
WRAP Service and Support
When purchasing WRAP coverage for your project, you should let us help. We write Construction WRAPs with all major providers and have direct market access in some cases which can make a big difference when comparing the overall costs of a WRAP. More importantly, we understand WRAPs and the many moving parts that affect how these types of policies are serviced. For example we can assist with the following:
- Understanding the function of the OCIP Adminstrator and assisting with the integration of contract documents with the OCIP addendums
- Understanding how to set up the OCIP addendum insurance requirements, bid credits and deductible provisions
- Assisting with OCIP enrollments and situations where subcontractors wish to "opt out" of coverage provided by the WRAP
- Assistance with understanding the Third Party Peer Review (TPPR) quality control requirements. TPPR is generally an underwriting requirement for many WRAP carriers that include construction documentation and inspections at certain milestones in a project's lifespan prior to completion.
- Understanding the role third party backed warranties play in the risk management process and in relation to WRAP products offered
When it comes time to consider a WRAP for your project, contact us at Beach & O'Neill Insurance Associates to see how we can help you. We understand the complexity of how WRAP policies are priced, and how they are serviced. We can help you make choices on the best type of product for your project. Contact us today and let us show you how our innovative WRAP projects can save you money and help you get your project going up and out of the ground.