C-Risk specializes in the design and implementation of wrap-ups, both
owner controlled insurance programs (OCIP) and contractor controlled insurance programs (CCIP). We provide consulting to
construction industry clients that require assistance with wrap-up feasibility studies, program structure,
implementation requirements, or administration procedures. C-Risk will assist clients with the formation of an effective
wrap-up strategy and provide advice on project-specific wrap-ups, or multi-year, multi-site, wrap-up insurance programs,
a.k.a., "rolling wrap-ups".
Just as design-build projects have proliferated over the years, wrap-up insurance programs are being used more and more
on large commercial and public construction projects. Wrap-ups provide the program sponsor, owner or contractor, with some definite
advantages over a conventional insurance program. The most significant being the potential insurance cost savings, broader coverage,
higher limits, better claim management, and more effective safety and loss control.
Wrap-up insurance programs have traditionally included general liability/excess liability and workers' compensation/employers' liability
as standard components. However, GL-only wrap-ups have recently been designed for projects in States with workers' compensation troubles,
and for residential construction projects in order to mitigate construction defect/general liability claims and provide general liability
insurance coverage through OCIPs and CCIPs for trade contractors who cannot obtain adequate coverage or liability limits to work on certain
types of residential projects, such as condominium development projects.
Like everything else in the construction industry, planning is a critical component of a successful wrap-up insurance program.
There are many ways to structure wrap-ups, but the critical success factor is the capabilities of the people who are
responsible for program design, implementation and administration. Any owner or contractor evaluating the feasibility of implementing a
wrap-up should seek help and guidance from a competent insurance and risk management professional.
C-Risk has determined that success on most wrap-ups can be achieved through the integration of risk management and loss control,
with project management and contract administration. Our expertise in construction operations, project controls, and
risk management processes, enables us to provide an integrated risk management strategy for a successful wrap-up program solution.
Additional information regarding the design, development and implementation of wrap-up insurance programs is
available in the Articles section of the
C-Risk Reference
Library. There are two articles on OCIPs by C-Risk's President, David L. Grenier, that were originally published in the September/October 2000 and January/February 2001
Construction Financial Management Association (CFMA) Building Profits journal entitled, "Owner-Controlled Insurance Programs - Part
1", and "Owner-Controlled Insurance Programs - Part
2".
These articles provide a comprehensive review of OCIPs and CCIPs, as well as a roadmap for construction professionals
to utilize in the evaluation and determination of their wrap-up project and/or program requirements.
A critical component of any wrap-up insurance program is the capability and functionality of the risk management
information system (RMIS) in order to effectively manage and coordinate the wrap-up administration processes.
There are a variety of wrap-up administration systems currently available in the marketplace, but only a few offer
an integrated solution for performing data correlation and provide the user collaboration capability.
One application service provider (ASP) providing an effective internet-based relational database management system to assist owners, contractors,
and insurance agents and brokers with the administration of OCIPs or CCIPs is
Acacia Technology & Management, Inc.
Acacia's desktop version of their Coordinated Insurance Management System
(CIMS) program was first deployed in 1998
and has been made available as an interactive web application called CIMS®.
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For additional information about how C-Risk can assist you with your wrap-up insurance programs, please contact us at
