Creating a successful construction wrap-up program

In a new ACE Group whitepaper, Building a Successful Construction Wrap-Up Program, George Cesarini, Geoffrey Hall and Joseph Crowther, of ACE USA’s Construction unit, provide a detailed roadmap for creating a successful wrap-up program. The authors believe that wrap-up programs not only can help manage a project’s insurance costs and potentially reduce litigation among insureds, but that such programs also provide an effective tool to enhance safety for everyone on the job site. The roadmap includes the following steps:

• Build a strong safety culture throughout the organization: Since the wrap-up sponsor assumes the cost of insurance, it’s crucial to select subcontractors with strong safety cultures and performance records; a reputation for safety makes a company more attractive to clients and insurers
• Clear communication is key: A wrap-up program involves more than just the purchase of an insurance policy, it requires that broker, insurer, sponsor and claims work together; communication and coordination among all parties is key to a successful project
• Select expertise in construction underwriting: Wrap-up programs require substantial deductibles and represent a significant commitment from both sponsor and insurer; the sponsor should work with an insurer that has significant expertise in underwriting construction projects in addition to managing construction claims and litigation

In a successful wrap-up program, all of the participants must work together to eliminate or dramatically reduce potential exposures. Addressing those exposures requires clear communication from the very inception of the project through its completion.