Controlled Insurance Programs Course Outline

1. Course Overview
2. Introduction
   1. Traditional Construction Insurance Approach
   2. What Is a CIP?
   3. Wrap-Up Usage and Terminology
   4. CIP Feasibility and Implementation
3. Construction Wrap-Ups
   1. Sponsorship
   2. Benefits of a CIP
      1. Reduced Litigation
         1. Conflict Resolution
      2. Compliance with Regulatory Standards
      3. Control of Insurance Coverage
         1. Limits of Liability
      4. Solving Insurance Availability Problems
      5. Improved Productivity
      6. Cost Control
      7. Enhanced Ability To Use Small Contractors
   3. What Constraints Apply to CIP Use?
      1. Project Size
      2. Control
      3. Legal Jurisdiction
      4. Costs
      5. Ability and Inclination To Administer a Wrap-Up
      6. Runoff
   4. Mitigating Contractor Concerns
      1. Inequity in the Risk Allocation
      2. Conflicts of Interest
      3. Insurance Program Disruption
      4. Complication of Bid Preparation
      5. Inability To Receive Timely Loss Information
      6. Audit and Claims Management Problems
      7. Administrative Tasks
      8. Coordination of Coverage
      9. Risk Control Program Changes
   5. Wrap-Up Do's and Dont's
4. Feasibility Analysis and Plan of Action
   1. Who Should Perform the Study
   2. General Guidelines
      1. Jurisdictional Qualifications
      2. Adequate Size
      3. Multiple Contractors
      4. Limited Number of Sites
      5. Duration
      6. Control of Contractors
      7. Design for Safety
      8. Site Security
      9. Support for Risk Control
   3. Plan of Action
      1. Time Schedule
   4. Required Services
      1. Exposure Data and Risk Identification
   5. Qualification and Selection of Service Providers
      1. CIP Manager or Administrator
      2. Insurance Broker
      3. Broker/Administrator Compensation
      4. Insurer
      5. Risk Control
      6. Medical Services
      7. Claims Management
      8. Contractors
5. Bid and Contract Documents
   1. Bid Documents
   2. Insurance Cost Tracking Approaches
      1. Net Bids
      2. Gross Bids
      3. Two Separate Bids
      4. Choosing between the Base Bid Options
      5. Change Orders
      6. Close-Out Calculations
      7. Special Considerations
         1. Public Works Projects
         2. Residential Projects
      8. Contract Terms and Conditions
         1. Insurance Provisions
         2. Risk Control Provisions
         3. A Checklist of Contract Considerations
6. Insurance Program Design
   1. CGL and Umbrella Liability Insurance
      1. Coverage Details
         1. Insureds
         2. Cross Liability Coverage
         3. Contractual Liability Coverage
         4. Property Damage Liability
         5. Completed Operations
         6. XCU Coverage
         7. Additional Liability Coverage Lines
         8. Other Liability Coverage Considerations
   2. Workers Compensation Insurance
      1. Possible Coverage Extensions
         1. “Other States” Coverage
         2. Stop Gap Coverage
         3. Federal and Maritime Coverages
         4. Voluntary Compensation Coverage
         5. Subrogation Waiver
      2. Policy Issuance
   3. Coverage Commencement and Termination
   4. Builders Risk
   5. Rating and Risk Finance Structures
      1. Guaranteed Cost Insurance
      2. Participating Plans
      3. Loss Sensitive Plans
      4. Wrap-Up Captive
      5. Cash Flow
      6. Tax Implications
      7. Term of Adjustment
   6. Comments on Non-CIP Insurance
      1. Standard Lines
      2. Aircraft Liability
      3. Design Errors and Omissions
      4. Residual Wrap-Up Coverage
      5. Contractors’ Tools and Equipment
   7. CIP Insurance Manual
7. Risk Control
   1. Identification and Treatment of Site Hazards
   2. Lines of Authority and Reporting Requirements
   3. The Owner’s Role in Project Safety
   4. The Sponsor’s Role in Project Safety
   5. Written Risk Control Programs
   6. Specified Minimum Training for the Workers
   7. Work Area Inspections
   8. OSHA Voluntary Protection Program
   9. Violations and Penalties
   10. Substance Abuse Program
   11. Fire Protection
   12. Public Safety
   13. Project Security
   14. Industrial Hygiene and Environmental Protection
   15. Emergency/Contingency Plans
   16. Medical Facilities
       1. Coverage Sections
       2. Coverage Trigger
       3. Definition of Wrongful Acts
8. Administration
   1. Document Control
   2. Information Management
   3. Analysis and Reporting
   4. Participation in the Bidding Process
      1. Contract Negotiation
      2. Bid Evaluation
   5. Preconstruction Conference
   6. Training the Project Team
   7. Audits and Inspections
   8. CIP Program Maintenance
   9. Program Closeout