Cost Savings is one of the main benefits of implementing a Wrap Up. In order to make more money, companies must be creative and find ways to cut project costs. Typically, you don’t want to cut cost in key areas like hiring quality contractors to perform the work or using quality materials to build the project. So, what better way to save than cutting the cost of insurance?
Just over 10 years ago, Wrap-Up Administration was managed by using paper forms submitted via fax and enrollments tracked via simple excel spreadsheets. Administrators were manually creating weekly reports, and companies were hiring entry-level personnel or third-party administrators for routine data entry. This left a great margin for error.
A wrap-up is the consolidation of workers’ compensation, excess/umbrella and general liability insurance coverage for all or most of the entities working on a project. Construction companies submitting bids for the jobs are asked to deduct these insurance costs from their bids. The wrap-up administrator then purchases coverage for the job. Once engaged in the project, the contractor’s cost of insurance is deducted from the payments it receives as the project goes forward.
I recently came across a blog post on the website for Cobb Strecker Dunphy and Zimmerman, a commercial insurance and surety company that services the construction industry, among others. The post was titled When Bigger is Just Bigger, and one section in particular struck a chord.
As an advisor to the construction industry providing OCIP software and CCIP software, I always enjoy speaking to risk management executives at owner organizations and contractor sponsors. After all, our software is ultimately designed to provide better service to these firms. It’s great to hear directly from the source what they are looking for in their wrap-up administration service, so we can think about how to incorporate these needs into our product.
This year, as in years past, the IRMI Construction Risk Conference did not disappoint. The event was a wonderful opportunity to greet familiar faces and meet new ones in the industry, and to be informed on the state of wrap-up programs in construction.
VUE Software will be joining 1000-plus attendees at this year’s IRMI Construction Risk Conference, to be held in Orlando, FL from November 11 – 15. The Conference is a premier forum to network with industry experts gathered with a purpose to improve construction risk and insurance programs.
From November 14 to 17, 2011, San Diego was home to the 31st IRMI Construction Risk Conference. Representatives from VUE Software, a proud sponsor of the event, attended to participate in conversations about this year’s most important construction risk management issues.
We are excited to network with industry professionals at the 30th IRMI Construction Risk Conference, to be held in Orlando, FL from November 14-18. VUE Wrap-Up Management will be one of four sponsors featured in the conference’s Products and Services Showcase.
As the 30th IRMI Construction Risk Conference came to a close yesterday, we were struck by some key takeaways. As a provider of wrap-up administration technology, we were drawn to sessions about OCIPs and CCIPs, presented by key specialists such as Kathleen Creedon of Wrap Strategies and Richard Resnick of Aon.
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.