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Presenting a CCIP Proposal Discussed at Construction Group

The sales cycle for a Contractor Controlled Insurance Program, (CCIP) or “wrap,” is typically 12 to 18 months. “But once you have a contractor intrigued, you are a consultant rather than a sales person. That opens the door.”

This was the advice at the recent Construction Practice Group teleconference from Roberto Rivera-Rodriguez of SullivanCurtisMonroe.

An important part of the sales process is to present a pro forma based on a project similar to the one on which the contractor is bidding, Rivera-Rodriquez said. He then presented a sample proposal and led the group through key portions.

Sample pro formas are available both from him and Charles Comiskey, practice group chair and senior vice president of Brady Chapman Holland & Associates.

Here are some of the comments:

“Middle-market contractors are a good market for wraps, as many think they are too small to benefit. The key is to explain to contractors that they will be ahead even in the worst-case scenario because they can control their losses. Bespoke coverage options also are an important advantage.”

“As soon as contractors get a taste for the profits available and see this as broker-driven, they are huge proponents.”

“Quality control is key to profits. Contractors are good candidates for a wraps only if they know their subs well. In one case, an employee failed to report an injury on time and the policy ended up not covering the claim.”

“As the labor shortage hits, we are starting to see more onsite losses. We’re getting the B & C teams from subs. The problem can be that you have right contractor but the wrong crew. When the economy is not as good, we get the A team.”

“Adequate markets exist, with about half a dozen available for residential projects.”


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