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The Unique Risk of Construction Wrap-up Policies

The Unique Risk of Construction Wrap-up Policies. Agenda. Presenters History of Wrap-up Policies CIP Terms & Types Differences: General vs. Wrap-up Policies Advantages & Disadvantages Discussion Points Ethical Considerations. Presenters. Brian Trusky

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The Unique Risk of Construction Wrap-up Policies

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  1. The Unique Risk of Construction Wrap-up Policies

  2. Agenda • Presenters • History of Wrap-up Policies • CIP Terms & Types • Differences: General vs. Wrap-up Policies • Advantages & Disadvantages • Discussion Points • Ethical Considerations

  3. Presenters • Brian Trusky • Vice President, Loss Prevention - Moss & Associates • Thomas Martyn, Esq. • Law offices of Martyn, Toher, Martyn (LM) • Thomas McBride, Esq. • Partner, Delaney & O’Brien

  4. Market History of Wrap-up Policies • Origination of Policy Type • Why existing insurance products didn’t fit need • Period of use • Areas of Historic Use • Commercial Developers • Government Projects • Large Public Projects • Ex:

  5. CIP Terms & Types • Controlled Insurance Program (CIP) • Centralized and controlled insurance and risk program • Sponsored by contractor or project owner • Covers owner, and participating contractors and subs • Maintains overall responsibility for worksite& safety • Claim management & involvement • CIP Sponsor • The party who purchases the Wrap Up policy • CCIP • Contractor is the sponsor • OCIP • Owner is the sponsor

  6. CIP Terms & Types • Maintenance CIP • Ongoing contract work for ongoing facilities • CIP remains in place • Contracted work added as it occurs • Rolling CIP • Ongoing CIP • Insure multiple construction projects • Other Types • Residential, Environmental, GL only, International…

  7. Why CIP Over Traditional CGL? CIP CGL Insured buys insurance from contractors Different brokers and carriers Various coverage and limits among all parties Various rates Various safety approaches Litigation and claim vulnerabilities • Sponsor buys insurance for contractors • One broker and one carrier • Uniform coverage and limits • One rate • Uniform safety approach • Select litigation and claim dashboards can be mitigated • Better Monitoring of Settlement/Closeout

  8. Project Close-Out • Close-Out vs. Termination • Factor: High Unemployment rate • (need additional bullets)

  9. Ethical Conflicts/Considerations • How to identify the client • Areas of potential GC/Sub conflict of interest • Understand claims handling and reporting needs of case • Do you need separate handling of case? • Different Claims handler • Different attorneys • Addressing cross-claim issues • Why a unified defense might not be possible • Terminating CIP Program

  10. Questions?

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