Texas OKs New Rule for Wrap-Up Construction Project Policies

The Texas Department of Insurance (TDI) has approved a filing by the National Council on Compensation Insurance (NCCI) to establish eligibility requirements for wrap-up construction project policies.

The changes in Item 02-TX-2016 apply to new and renewal workers’ compensation policies with effective dates on and after Jan. 1, 2017.

The commissioner’s order explains that a wrap-up is “a consolidated insurance program, an owner-controlled insurance program, or a contractor-controlled insurance program,” that “uses individual policies for each contractor or subcontractor working on the project.”

The new rule “allows contractors in a wrap-up construction project to combine their total manual premiums to qualify for a negotiated deductible under Deductible Program Rule D-2-a in the Texas Miscellaneous Rules section of the NCCI Basic Manual,” the order states.

Previously, a contractor could qualify for a negotiated deductible based on an individual total manual premium.

Source: TDI

Topics Texas Contractors Construction