It’s safe to say that many hazard risks exist in the construction realm, and therefore a commitment to safety is vital. Wrap-up programs require significant deductibles, and as such represent a significant commitment from both the insured (sponsor) and the insurer. As such, the sponsor must work with an insurer that has specific expertise in underwriting large construction projects and managing construction claims and lawsuits.
Wrap-up programs are more than simply just an insurance policy; it’s an all-encompassing insurance program that protects all contractors and subcontractors working on a large project ($10 million+). A successful wrap-up program allows a project owner, developer or general contractor to help manage a project’s insurance costs, potentially reduces litigation risks, and provides an effective tool to enhance safety for everyone on the job site through a consistent set of safety requirements. What factors will make your New Mexico Wrap-Up Program successful?
Implementing a Project-Specific Safety Manual
Before a project even comes out of the conception stage, a project-specific safety manual should be developed. This manual should cover the safety expectations and criteria that’s been established by the sponsor and its risk management team. It needs to clearly outline the wrap-up sponsor’s safety policy statement in addition to the roles and responsibilities of all participating parties; from the subcontractors to the construction managers.
Looking for Contractors with Strong Safety Records
Wrap-up sponsors assume the cost of insurance. Therefore, the subcontractors they select for the job should have strong safety performance records and a history of quality work while adhering to safety rules and regulations. Criteria such as the subcontractor’s experience modification rate over the past few years should also be considered, in addition to their Bureau of Labor Statistics recordable and loss time incident rates, and any OSHA fines they’ve accumulated.
Manage for Safety
Holding an employee orientation where everyone from the chief executive to the group of subcontractors is present is a perfect opportunity to share key safety regulations and to ensure appropriate safety training. Right from the beginning, a safety committee should be established that includes management and labor.
These are just a few factors that contribute to a successful Construction Wrap-Up program. It’s also important that the sponsor of such a program take the appropriate steps to prevent falls on the job, combat substance abuse, monitor for safety, investigate accidents and reward success, help workers get back on the job if inured, and more.
Daniels Insurance, Inc. provides expertise in both Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP). For more information about our construction insurance policies and more, contact us today at 855.565.7616.