Wrap-Up Liability Insurance Ontario
As an award-winning commercial insurance brokerage firm, Contractors Insurance is trusted by numerous contractors, tradespeople, and other professionals needing policies for their businesses. We offer our clients personalized insurance plans and bundles, and this includes wrap-up liability insurance.
Risk is often pushed down a ladder of responsibility from general construction managers to subcontractors. To protect everyone involved in a large project, wrap-up liability insurance serves as a centralized policy that covers the entire team against financial liabilities.
We have set up many clients with personalized wrap-up liability insurance, ensuring that they’re covered against risks and liabilities that they might face. With our years of expertise in the industry, you can rest assured that you’re in good hands at Contractors Insurance.
What Is Wrap-Up Liability Insurance?
Wrap-up liability insurance is an all-inclusive policy that protects everyone involved in a construction project, from the owners and engineers, to project managers, contractors, and subcontractors. This policy usually addresses and ensures that every liability is covered sufficiently.
This type of policy is also split into two types:
- Owner Controlled Insurance Program (OCIP)
- Contractor Controlled Insurance Program (CCIP)
OCIP wrap-up insurance holds project owners responsible for sponsoring and controlling the program. The project owner will be the first insured name, and the rest, such as the contractors and subcontractors, will be named insureds.
Meanwhile, CCIP wrap-up insurance holds the general contractor as the sponsor and the one who controls the program. The general contractor will be the first named insured, and subcontractors plus other participants will be named insureds. Depending on certain factors, the project owner may be named insured or additional insured.
Wrap-up liability insurance is a combination of traditional insurance policies. Depending on which type of program the first named insured goes for, the following policies are covered:
What Does OCIP and CCIP Wrap-Up Insurance Cover?
These programs will typically include one or more of the following:
Commercial General Liability (CGL) Insurance
Construction sites are hazardous places to work in. The regular use of high-powered tools, workers falling from great heights, or working in close proximity to civilian property introduces risks to you, your employees, and the public. CGL insurance covers legal and medical fees in case there’s a third-party injury, third-party property damage, or lawsuits against your business.
Builder’s Risk Insurance
Builder’s risk insurance covers all contractors who are involved in the project. This type of policy protects the building under construction and its materials from expenses borne out of theft, damage, or vandalism. It also covers tools and equipment left on-site, which may be vulnerable to theft as well. Builder’s risk insurance will help pay for the repair or replacement costs for these tools and equipment.
Umbrella Liability Insurance
This type of policy is an added layer of protection for you and your business. It extends beyond the policy limit in your existing insurance coverage. For instance, once your primary policy limit is used up, umbrella liability insurance will take over and help pay for the remaining costs. However, this only applies to third-party injuries or property damage claims and does not include some policies, such as cyber liability insurance.
Who Can Benefit From Wrap-Up Liability Insurance?
Wrap-up liability insurance will protect all parties working together on a construction site from lawsuits and other fees.
If you are one of the following, you will benefit from this type of policy:
- Project owner or developer;
- General contractor;
- Project manager;
- Subcontractor; or
Contractors Insurance has helped numerous clients in securing the perfect wrap-up liability package for their needs. If you’re still unsure about the type of program you should get, or if you need more information on any wrap-up insurance exclusion, we’re ready to assist you!
Why Ontario Contractors Need This Insurance Type
Wrap-up insurance is there to give you the peace of mind you need while working on a project—especially one that is worth millions. Aside from the blanket coverage that accounts for everyone on the team, it also takes away the need for every contractor and subcontractor to purchase their own liability insurance.
Doing so lessens the possibility of a gap in their coverage or being given insufficient limits by their policy provider.
Wrap-Up Liability Insurance Claims Examples
Claims Example #1
A piece of equipment used by a contractor gets stolen. An investigation is ongoing, but the project needs to continue, so a replacement for the equipment needs to be bought.
Under builder’s risk insurance, the equipment will be covered, and the replacement cost will amount to approximately $8,000.
Claims Example #2
A slip-and-fall incident occurred at the project site, which caused one of the workers to sustain injuries.
Under CGL insurance, the settlement amount of around $20,000 for medical costs, and $10,000 for legal damages will be covered—totalling $30,000.
Claims Example #3
You caused a road accident which resulted in the destruction of your company car.
Umbrella insurance can help pay for damages to the vehicle up to $300,000.
Leading Provider Of Wrap-Up Liability Insurance In Ontario
One of the many reasons why we can build trust and long-lasting relationships with our clients is because of our customer-centric approach. At Contractors Insurance, we offer you the following benefits:
Personalized Recommendations on Insurance Policies
With our personalized recommendations for insurance plans, we offer only the best solutions to your business: tailor-fit to your unique needs without unnecessary and costly riders.
Complete Transparency on Coverage and Limitations
Once your insurance plan is ready, we will explain everything thoroughly and with full transparency. We’ll be there to advise you on your coverage limits, its exclusions, and the events that can trigger a claim. If anything isn’t up to your liking, we’ll tweak it until you’ve got the right policy for your needs.
Straightforward Insurance Education
With so many terms and policies to be aware of, insurance itself tends to be a daunting topic for many people. This is why we avoid confusing jargon whenever we educate our clients about insurance. We want to be on the same page with them, so we can ensure that their policies are the right fit for their unique business needs.
Frequently Asked Questions About Wrap-Up Liability
Numerous factors will affect the total amount of wrap-up liability insurance, including the risks associated with your industry, the size of your business, and so on. The limit, however, can go up to $25,000,000, depending on the type of project.
A wrap-up exclusion endorsement is used to remove coverage from an existing policy, usually from a general contractor. This is to avoid any overlaps in the coverage provided for the contractor under an OCIP or CCIP program.
Ready To Get The Coverage You Need?
Contractors Insurance is an Ontario-based, award-winning insurance brokerage that is dedicated to personalizing insurance for clients. Whether you’re a new contractor or you’ve been in the industry for years, we are ready to assist you with all your insurance needs.