As a construction company, it is rather important to have insurance coverage to protect your business. Regarding wrap-up construction insurance, there are some things to consider to ensure you have the right coverage in place.
Continue reading to learn more.
What Exactly Is Wrap-Up Insurance Coverage?
Wrap-up insurance is a type of insurance coverage that is put in place for construction projects. This type of coverage is also sometimes referred to as an owner-controlled insurance program (OCIP) or contractor-controlled insurance program (CCIP).
Wrap-up insurance coverage can protect you from various construction project risks, such as property damage, bodily injury, and more. This type of coverage can be beneficial for the construction company and the project owner.
Is Construction Insurance Required?
There is no federal law that requires construction companies to carry insurance, though certain states may need it. Even if it isn’t compulsory, construction insurance is recommended as it can protect your business.
If you are working on a construction project, it is quite important to make sure that you have the proper insurance coverage in place. If you do not have the appropriate insurance coverage, you could be held liable for any damages.
Which Contractors Must Be Insured?
There are many different types of contractors that must be insured to protect their businesses. Some of the most common types of contractors that must be guaranteed include architects, engineers, plumbers, electricians, and more. Each of these types of contractors has its own unique risks that they face daily, and it is important for them to have the proper insurance in place to protect their businesses from these risks.
What Does Construction Insurance Cost?
There isn’t really a one-size-fits-all answer to the question of how much construction insurance costs. The price of a policy will likely depend on several factors, including the duration of the policy, the credit history of the construction company, and the level of experience of the company.
Let’s explore these points:
- The Duration of Policy. The duration of the policy is one of the most important factors that affect the cost of construction insurance. The longer the policy, the more expensive it will be. This is because the insurance company will have to pay out more money if there are more claims made during the policy period.
- The Company Credit History. The credit history of the construction company is another important factor. If the company has a good credit history, the insurance company will be more likely to offer a lower premium. This is because the insurance company will view the company as being less of a risk.
- The Level of Experience. The level of experience of the company also affects the cost of construction insurance. If the company has a lot of experience, the insurance company will be more likely to offer a lower premium. This is because the company will be viewed as being less of a risk.
Conclusion
In conclusion, it is important for construction companies to carefully consider their options for wrap-up insurance coverage. This type of insurance can provide important protection for a construction project, but it is important to make sure that the coverage is adequate.
In need of builders risk insurance? Pascal Burke Insurance Brokerage Inc. is a specialist in an array of policies that cover not only general cases but specialty contractors. Get in touch with us today!