Wrap-up Dos and Don’ts from the 29th IRMI Construction Risk Conference in DC


In early November, a few of us at VUE Software attended the 29th IRMI Construction Risk Conference hosted by the International Risk Management Institute (IRMI) at the Gaylord National convention center in Washington DC – a great opportunity to spend time with brokers of controlled insurance programs (CIPs, often called wrap-ups) for construction companies and project owners.  Being technology experts on wrap-ups, we focused on the discussion around wrap up programs and how they fit into the current and future risk management landscape and the economy in general.

Although wrap-ups originally grew in popularity during the building boom of years past, they are still a fixture in today’s slower economy, and will continue to be an important part of construction risk management. In his keynote presentation, Edmund F. Kelly, Chairman, President, and CEO of Liberty Mutual said, “Wrap-ups are good; they’re good for underwriting and useful for controlling cost and safety. They are trending up and won’t slow down.”

Here are our top 10 dos and don’ts that we’d like to share, which will help project sponsors throughout the lifecycle of their wrap-up program. (These points will be helpful to anyone currently involved in OCIPs or CCIPs, but if you are not well-versed in these programs and want further information, this site offers a helpful and thorough explanation.)

Top Ten Wrap-up Do’s and Don’ts

Adapted from Workshop M3 at the 29th IRMI Construction Risk Conference

  • DO choose a broker through a thorough selection process that identifies the agent or broker’s qualifications, experience setting up administrative procedures, communications with participants and closing out programs, as well as the technology they use to manage CIPs.
  • DON’T assume that all wrap-ups, OCCIPs and CCIPs are the same.
  • DO understand that state laws and regulations vary significantly and these programs must be tailored to fit them as well as any regional differences.
  • DON’T fail to involve contractors/subs in the purchasing decision, project scheduling, etc.
  • DO involve subcontractors in wrap purchasing decisions, project scheduling etc to assure that important nuances are not missed, and to get buy-in from subs.
  • DO include workers compensation in the CIP.
  • DON’T ignore the actual claim experience of participants when making the wrap-up purchasing decision.
  • DO solicit claim history data from participants to guide wrap-up design and purchasing decisions.
  • DON’T leave detailed information about the OCIP out of the pre-bid packets.
  • DO provide as thorough a description of the CIP coverage and other details (like contract language and insurance policies) as possible within the bid specifications. Include the OCIP manager and applicable written information in all pre-bid meetings.


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