Wrap Risk Management

Developing your Wrap-Up starts here.

Risk management is the process of identifying, assessing, and controlling risk. Every business implements some type of risk management procedure that involves prioritizing risk. A large construction project creates challenges where Owners or General Contractors must develop appropriate programs that address these constantly changing risks while implementing those programs and procedures company-wide. Be it contractual, procurement, or operational — it isn’t an easy task.

A critical risk mitigation tool for a large construction project is a Wrap-Up. At TSIB, our unique and extensive experience placing billions in construction volume annually, gives us in-depth understanding of Wrap-Up Risk Management. Specifically, our Wrap-Up Risk Management approach consists of three distinct categories:

Program Design:

We can help you evaluate all forms of risk financing options and coverage analysis, from retention and deductible programs to captives that include group and single cell options to excess placements. We specialize in both Corporate and Wrap-Up placements, as well as alternative covers like Professional, Pollution, and Builder’s Risk.

Operational Assessment:

Our knowledgeable construction professionals understand the construction industry and how contractors’ daily work can affect risk. We use this information to help you evaluate appropriate controls and procedures to address these challenges. From business development and subcontractor procurement to construction operations, we can provide you a third-party assessment that builds the proper risk management controls you need.


We understand the core business of our clients. Whether it’s a construction firm, real estate developer, public entity, hospital, or higher education institution, we have experience creating successful Wrap-Up risk management programs for their projects. These programs must be integrated not only with the construction field staff but with all facets of a construction operation. We can help you evaluate and identify procedures that you can readily apply and monitor. Our unique construction and Wrap-up perspective affords us the ability to seamlessly integrate programs into the day-to-day operations of a construction project without taking the focus away from the project.

Wrap-Up Risk Management Program Example

In the following example, TSIB developed a program for a large general contractor that wanted to evaluate and maximize their Wrap-up Program. We implemented six measured steps to complete this process:

  • Examination of the Wrap-up program and how it aligns with the risk management and financial goals of the firm. The goal of this stage is to establish a baseline of Wrap-up potential in terms of utilization, profitability, and overall risk management effectiveness.

    This initial review includes:
    • Review of existing project’s size, scope, geography, and relevant statutory elements. Generalized information only required (no project names for example).
    • Comparison of sold insurance program against project scope. We want to analyze your Wrap-up Insurance Financial Deal to identify potential conflicts with your Wrap-up projections.
  • We suggest studying each part of the Wrap-up Process from estimating and sales, through procurement and operations, to final project completion and closeout. The goal of this stage is to identify current challenges and identify opportunities for process and program improvement to increase utilization and performance.

    To maximize the results of this step, we may need to interview individuals within your company in the following business functions:

    • Business Development: What are the different way(s) that Wrap-up is discussed in proposals to clients? What language is used when speaking about Wrap-ups? How does your sales team handle questions regarding coverage, or comparisons against traditional insurance cost or Owner Controlled Insurance Programs?
    • Estimating: Essentially “how is the Wrap-up priced”? What considerations are established and how is Wrap-up pricing implemented into the overall project cost?
    • Project Management/Project Executives Exposure: What is the current ‘in-the-field’ experience with the Wrap-up? What challenges may be presenting themselves that lead to a negative experience with the operational team?
    • Project Level Accounting: What are the financial challenges experienced during construction and post-completion in terms of cash flow, documentation, financial reconciliation, etc.?
  • Review established operational controls that are critical to effective Wrap-up implementation and performance. The goal of this stage is to identify areas for enhancement from the perspectives of ease-of-field implementation as well as program performance.

    Our team will focus on the following areas of review in this stage:

    • Procurement and Trade Contractor Pre-qualification
    • Safety Operations and Coordination with Wrap-up Projects Claims Management Process & Controls
    • Claims Special Handling Instructions
    • Wrap-up Administration
    • On-site Operational Controls & “Gatekeeper” Functions
  • The General Contractors Wrap-up insurance program needs to reflect the overall strategic and implementation needs determined in Sections A-C above. The goal of this stage is to evaluate the alignment between strategic needs and Wrap-up insurance structure and coverage.

    The TSIB team will review:

    • Overall program structure including deductible level, program aggregate, financial terms, program agreements, etc.
    • Wrap-up policy(s) coverage terms & conditions
    • Supporting insurance program terms & policy documents (e.g. Builder’s Risk)
    Review of Existing Projects 0–30
    Comparison of Sold Program Against Project Scope 0–30
    Business Development 30–60
    Estimating 30–60
    Project Management/Project Executive 30–60
    Project Level Accounting 30–60
    Review of Pre-qualification 0–30
    Safety/Claims Coordination with Wrap-up Controls 0–30
    Claims Special Handling Instructions 0–30
    Wrap-up Administration 0–30
    On-site Controls and “Gatekeeper” Functions 0–30
    Review of Overall Program Structure 60–90
    Wrap-up Policy(s) Coverage Terms & Conditions 60–90
    Supporting Program Terms 60–90
  • Upon completion of the review and analysis, TSIB will present our findings in a deliverable organized as follows:

    • Executive Summary
    • Review of General Contractors Wrap-up, Program Objectives & Utilization Potential
    • Analysis of the Current Program Design
    • Analysis of Processes & General Contractor Departmental Impacts
    • Recommendations for Program Enhancement Including:
      • Design
      • Structure
      • Documentation
      • Operations
      • Implementation
  • After review and discussion of the project deliverables, TSIB is available to assist the General Contractor Risk Management Team in developing an implementation plan of incorporation of recommended program enhancements into the existing General Contractor Wrap-up framework.

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