SB 44, a bill that limits the use of Consolidated Insurance Programs (CIPs), commonly known as wrap-around insurance programs, would raise the cost of construction and be harmful for Nevada consumers, according to the American Insurance Association.
“Wrap-around insurance allows builders and contractors to do one-stop insurance shopping which provides better coverage at a lower rate,” said Mark Sektnan, AIA assistant vice-president, western region. “Nevada is one of the fastest growing areas in the country. CIPs have a proven track record of reducing project costs between 1 percent and 3 percent. These savings can make a big difference to a prospective homebuyer.”
SB 44, which is currently pending before the Nevada Senate Commerce and Labor Committee, would impact small and large contractors as well. CIPs prevent litigation through uniform claims-handling procedures and provide specialized coverage for each project.
This consolidated insurance mechanism provides single-site safety enforcement, which improves workplace safety and streamlines project management, thus preventing gaps or overlaps in coverage, according to the AIA.
SB 44 will restrict the use of CIPs by limiting its use to only one project at a time within one mile of the site. SB 44 also raises the base threshold of estimated costs to projects over $250,000,000.
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