Why
Should You Use a Wrap?
You may not have a choice. In most cases general contractors
and sub contractors won’t work on certain types of residential
projects unless there is a wrap. They don’t want to jeopardize
their business by doing work on projects that aren’t
covered under their regular general liability policy. Also,
many lenders and municipalities require wraps for certain types
of residential projects, especially multi-family and mixed-use
commercial/residential. With that said, there are some other
advantages to using a wrap, including:
- One policy to answer for
all construction-defect related claims
- No “pot of gold” for
the plaintiffs’ attorneys…removes
the incentive
- Opens the door for more potential subcontractors
to bid on
the project
- Creates an environment of cooperation
instead of
"divide
and conquer”
- Allows the developer and builder to utilize
new strategies in risk management
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