Just as the name suggests, wrap up policy is an insurance cover that wraps up everyone together in a single bundle. As a real estate developer, you can protect the millions of dollars you have invested in a project with just one insurance policy. Like any other investor, you expect and hope that the project runs smoothly to the end with minimum setbacks for you to get the value for your money. Unfortunately, a smooth transitioning for most businesses is usually not guaranteed.
That’s where a wrap-up policy comes in. You need a policy that can provide coverage of all the possible risks against the project and your contractors. In this case, you are fortunate to have the “wrap up policy.” Mostly it is a policy meant to cover multimillion-dollar projects usually those with a budget beyond 10 million. The policy works by providing a cover blanket protection for contractors, subcontractors and the owner.
What This Insurance Coverage Does Offer?
In spite of being expensive, this policy shall cover you in the following risks. The policy protects against property damage for all the different individuals named in the policy. It also provides for protection of tools and equipment within the job site and those that are in transit. It covers workers’ compensation so that they can get paid even when you lack the funds. It covers vehicles used during the project process against damage and liability claims. Additionally, it is a protection plan for builders in a construction site from risks such as severe damage through lightning or even fire.
What Benefits Does It Offer, Why You Need It?
As a real estate developer, you want to focus on the critical issue at hand which is completing your project and realizing your investment. You wouldn’t want the process to stall due to liability claims or lack of compensation for your employees. The wrap-up policy essentially, collectively brings together all the risks and worries and caters for them. The wrap-up policy saves up to 30% on premium costs as opposed to having single individual policies. It gives you more control over many risks under one policy, speeds up the processes of liability claims and lastly it eliminates the need for acquiring third-party responsibility. From these insights, it is evident that even though it is expensive, the wrap-up policy ensures you have a piece of mind and focus on what truly matters. Contact us today for more information about wrap-up policies.