United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-06-01 monographic deposited born digital 35 p. GA 1.13:RCED-99-155 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-99-155 P0b002ee1803a1c7d f:rc99155 DGPO 2010-08-12 2011-03-24 GAOREPORTS-RCED-99-155 machine generated eng fdlp REPORT GAOREPORTS-RCED-99-155 RCED-99-155 Insurance cost control Comparative analysis Insurance regulation Insurance premiums Liability insurance Road construction Workers compensation Construction contracts Letter Report RCED Pursuant to a congressional request, GAO provided information on the advantages and disadvantages of wrap-up insurance over traditional insurance for large transportation projects and the factors that can affect the broader use of wrap-up insurance. GAO noted that: (1) owners of transportation projects, such as transit agencies and state departments of transportation, experience a number of advantages and disadvantages when they use wrap-up insurance; (2) major advantages include savings from buying insurance in bulk, eliminating duplication in coverage, handling claims more efficiently, reducing potential litigation, and enhancing workplace safety; (3) according to insurance industry officials, wrap-up insurance can save project owners up to 50 percent on the cost of traditional insurance, or from 1 to 3 percent of a project's construction cost, depending on its size; (4) the potential disadvantages of wrap-up insurance include requiring project owners to invest more time and resources in administration; (5) project owners must hire additional personnel or pay to contract out the management of the wrap-up insurance; (6) in addition, project owners could also have to pay large premiums at the beginning of the project; (7) however, transportation officials said these costs were reasonable; (8) a number of factors can affect the broader use of wrap-up insurance; (9) perhaps the most significant barriers are state systems for workers' compensation that, in some states, effectively prevent wrap-up insurance by greatly reducing its potential cost savings; (10) another limitation is that a project must be sufficiently large, or contain at least a sufficient amount of labor costs, to make wrap-up insurance financially viable; and (11) some contractors dislike wrap-up insurance because it reduces a contractor's profits from insurance rebates. https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-99-155/html/GAOREPORTS-RCED-99-155.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-99-155/pdf/GAOREPORTS-RCED-99-155.pdf GAO/RCED-99-155 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-99-155 Letter Report GAO/RCED-99-155; Transportation Infrastructure: Advantages and; Insurance cost control Comparative analysis Insurance regulation Insurance premiums Liability insurance Road construction Workers compensation Construction contracts