The WRAP-UP Liability policy is also known as an Owner Controlled Insurance Program (OCIP). Under this concept, the owner or contractor purchases a policy which covers the owner, the general contractor, and all their respective Subcontractors.

The subcontractors are required to deduct the cost of the liability insurance from their bids since it is being provided for all parties by the project owner. The wrap up administrator will audit the bids to make sure this has been followed.

The policy normally will be purchased to cover projects with construction costs of $3,000,000 or more although some policies are beginning to emerge to address the needs of smaller projects.. Underwriters usually write such policies for 24 or 36 month terms to allow for the construction and sale of the project. Some commercial projects may not require such long time frames and the period needed will be negotiated accordingly.

The rating trend lately has shown some competitiveness.  Rates that were running 11.5?% of construction costs a year ago are now closer to 8.3%.  On larger projects, we have seen some that were as low as 3.5% of construction costs.

The deductible or Self Insured Retention chosen by the applicant also influences the rates that will be paid.   For larger projects, larger deductibles or retentions are often used, resulting in very low rates.  This allows us to spend some of the money to get higher limits.

Most programs will provide a basic policy of $2,000,000 limits.  We have been able to get excess limits of $5,000,000, $10,000,000, and $20,000,000 excess of primary on a following form basis. This allows us to accommodate the needs of larger projects and of men of means who have a lot at risk.

Most companies use the application form posted on this website, supplemented by loss runs for five to seven years from the general contractor, a copy of the construction budget, and a copy of the soils report, including a plot plan of the project.

Our firm has been involved in providing Owner Controlled Insurance Plans for large building projects in the Los Angeles area for over 30 years.   We welcome your inquiries.