A new whitepaper published by Chubb looks into the cost, benefits, and efficiencies associated with maintenance owner-controlled insurance programs, also known as “wrap-up” insurance – particularly in the context of plant projects.
In a typical industrial plant project, each individual maintenance provider is required to secure its own workers’ compensation and general liability insurance for the job, based on contractual requirements.
But Chubb’s new paper found that if plant owners secure wrap-up insurance to protect all contractors and subcontractors, they can save an average of up to 60%, compared to buying policies for each and every contractor.
“Based on learnings from use within the construction industry, wrap-ups provide owners the opportunity to enhance the quality of their coverage for projects and realize greater consistency in policy terms and conditions,” said Chubb executive vice-president of construction major accounts Stephen Buonpane.
“Wrap-ups allow an owner to tailor coverage and limits to the site’s unique needs and preferences. This is especially important with general liability coverage, since risks can vary significantly from industry to industry and from plant to plant,” Buonpane added.
“Construction and industrial operations are highly technical. Chubb understands these unique risks, and how to make loss control practices more robust.”
The whitepaper also concluded that wrap-up insurance provides the following benefits:
- Elimination of gaps or overlaps in contractor coverage
- Easier coordination and plan administration
- Streamlined claims handling
- Long-term stability via a single carrier handling claims