CASE STUDY
Partner with an Expert
THE CHALLENGE
Broker A won the award for brokerage services from a Northeast-based Owner looking to implement an Owner Controlled Insurance Program (OCIP) on their newest project. However, they did not have the capabilities, manpower, and structure in place to provide the project’s Wrap Administration. Even though Broker A had the expertise in placing an OCIP, they now faced a real challenge on finding the right Wrap Administration team.
ON THE HUNT
When looking for the right team, Broker A knew they needed to be able to manage all the Wrap Administration for the project including subcontractor enrollments, certificate tracking, endorsements, project payroll, and most importantly the subcontractor credit verifications. Since the credit verifications significantly contribute to the direct success of any Wrap-Up, Broker A knew they needed to work with a premier Wrap Administrator.
WHY TSIB
TSIB is an expert in credit verifications. Properly verifying and tracking credit verifications is critical to any project’s success. The verifications are deducted from the contractor’s contract and used to pay the OCIP premium. These deductions are the amounts subcontractors would have paid for their corporate insurance.
The TSIB Wrap Administration team has managed more than $140B in construction volume and uses a proprietary state-of-the-art Risk Management Information System (RMIS), Wrapworks®, to keep everything organized. Broker A knew that Wrapworks not only provides real-time reporting and maintains decades of data but also provides Owner reports such as the Credit Verification report.
PARTNERSHIP BENEFITS
TSIB stepped in immediately and reviewed the General Contractor’s contract to make sure it tied directly to the Owner’s specific Wrap-Up Manual. Since the project was credit based, the subcontractor contracts included the bid gross process, which allowed the estimated insurance cost to be given to the Owner, who used that money to pay for the OCIP premiums.
As a partner, TSIB shared with Broker A where the percentage of volume (POV) was estimated to fall for the Owner’s specific project. Since the POV is a percent of the project’s construction volume, it’s used to indicate how market sensitive the program’s pricing is. The POV determines if the insurance program is priced well and helps keep the Owner within their budget. By sharing this information with Broker A, it’s a huge advantage for them and helped maintain the Owner’s best interest.
PARTNERSHIP BENEFITS
TSIB stepped in immediately and reviewed the General Contractor’s contract to make sure it tied directly to the Owner’s specific Wrap-Up Manual. Since the project was credit based, the subcontractor contracts included the bid gross process, which allowed the estimated insurance cost to be given to the Owner, who used that money to pay for the OCIP premiums.
As a partner, TSIB shared with Broker A where the percentage of volume (POV) was estimated to fall for the Owner’s specific project. Since the POV is a percent of the project’s construction volume, it’s used to indicate how market sensitive the program’s pricing is. The POV determines if the insurance program is priced well and helps keep the Owner within their budget. By sharing this information with Broker A, it’s a huge advantage for them and helped maintain the Owner’s best interest.
CONTINUED SUCCESS
After working together on this project, it was evident that TSIB was the right partner. TSIB’s credit verification capabilities increased the Owner’s bottom line by saving insurance credits.
For more than 10 years, $435M in CV, 1.25% in verified credits in NJ, the Northeast-based Owner continues to build new projects utilizing both Broker A and TSIB. Broker A has found working with TSIB necessary & beneficial to these projects, as well as others.
For more information, please visit tsibinc.com
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