- Posted at 9:34, November 09, 2013
- By Russ Bleemer
A big insurer is pushing a wide-ranging “construction wrap-up program” as essential to safety and project completion.
The Ace Group late last week released “Building a Successful Construction Wrap-Up Program,” an unusual report/sales brochure on managing risk. It’s “a comprehensive strategy to manage the associated risks of a particular construction project while also helping to reduce costs related to those risks and exposures, including the cost of insurance.”
“Construction wrap-up programs can provide a number of benefits to owners, developers, general contractors and subcontractors not only in terms of cost savings, but also in helping to eliminate potential exposures,” said co-author Geoffrey Hall, a senior vice president at ACE Construction.
The report says that under a construction wrap-up program,
an owner, developer or general contractor procures insurance on behalf of all the parties working on a project, instead of each subcontractor purchasing its own
insurance and indemnifying the contractor. Wrap-up programs not only help to manage a project’s insurance costs and potentially reduce litigation among insureds; they also provide an effective tool to enhance safety for everyone on the job site by providing a consistent set of safety requirements. For that reason, it’s crucial that the wrap-up insurer have the underwriting, risk engineering and claims expertise necessary to understand the extent of the risk.
The program advocates “a strong safety culture” can save lives . . . as well as litigation costs, among several areas addressed by the construction wrap-up management system.
“While even the most safety-focused company cannot prevent all accidents, it’s crucial to have a unified claims strategy and work with insurers experienced in the construction marketplace,” said Joseph Crowther, Vice President and ACE Construction Claims Client Executive, another coauthor, in the ACE release.”
The sales brochure is worth a look, here.
ACE Construction focuses on property and casualty insurance and a range of risk management tools. It's a division of ACE USA, and part of the ACE Group, which is based in Zurich and one of the world's biggest insurance companies.