Wrap-Up: The Development Process

Real estate developers face unique risks and complexities when it comes to construction projects. To ensure that all stakeholders thrive, including employees, clients, tenants, and partners, it is crucial to mitigate project risks effectively. One powerful tool that developers can use to achieve this is a Controlled Insurance Program, also known as a Wrap-Up.

A Wrap-Up consolidates various insurance coverages into one program, eliminating the need for individual contractors to procure their own insurance. Instead, the Owner of the project purchases insurance for the entire construction project and enrolls eligible contractors into the program. This approach helps manage project risks by providing more consistent insurance coverage, increased project-specific limits, extended completed operations coverage, increased minority and DBE participation, reduced cross-compliant litigation, and potential cost savings for the Owner.

There are two main parts to a Wrap-Up program: Placement and Administration. During the placement phase, insurance is purchased for all eligible contractors working on the project. The Administration phase involves managing administrative tasks such as reaching out to contractors daily, handling program paperwork, and ensuring contractors can start work promptly to prevent project delays. Many Owners opt to use a third-party Wrap Administration Service Team to handle this aspect of the Wrap-Up.

If you are interested in learning more about Wrap-Ups for your upcoming project, speak with James today and schedule a free feasibility study. By implementing a Wrap-Up program, real estate developers can effectively mitigate construction project risks and ensure the success of all stakeholders involved.