6 Tips to Remember When Enrolling in a Wrap-Up
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You’ve bid the job and won and it’s a wrap-up. Now what? You’ve heard the horror stories about wrap-ups and the large amount of paperwork and requirements, but never experienced it for yourself. Here are some tips on what to look for when enrolling in a wrap-up.
First, is the sponsor holding orientation meetings? A wrap-up is only as good as its communication process and orientation meetings are critical for understand your roles, responsibilities and reporting requirements.
Next, were you provided a wrap-up manual? The manual is one of the main components along with your contract. Have you shared the manual with your broker? Not the enrollment form, which we’ll get to shortly, but the entire manual? Your broker needs to understand what the wrap-up is providing in order to properly advise you.
It’s time to enroll. Take a deep breath, close your eyes and count to ten. It’s not that intimidating. Some useful tips:
- Rates – It’s important to disclose all rates and credits when completing the form. Should you not include credits you’re receiving, the amount the sponsor is going to take as a deduct/credit is going to be more than the credit you’ll receive from your carrier at audit.
- Declaration/Rate Pages – A fair deduct is one that reflects your rates and a good administrator will ask for your rate pages to confirm your rates. If you don’t provide these, the administrator may use their own rates which are probably higher than yours.
- Change Orders – Be clear on whether the credits taken by the sponsor apply to subsequent change orders; if they do, account for this accordingly.
- Loss Sensitive Programs – If you’re on a loss sensitive program, disclose the loss projection loss rate being used by your carrier. The enrollment form shows the administrator if you’re on a loss sensitive plan and if you try to show just your expense rate you’re creating more work for everyone involved, especially your team. Your broker can assist you with this if you’re not familiar with the concept.
- Excess/Umbrella Credit – Every administrator has heard the “my umbrella is flat” story so don’t go down that path. Ask you broker to help generate a “rate” or provide an appropriate premium based on your bid. Your umbrella premium is a function of your underlying premiums and the administrator knows this. As with the second point, if you don’t provide this information, they will generate a premium deduct for you.
- Communication – Please ask questions. If you’re unsure, reach out to the administrator. This is part of the enrollment process and they welcome questions as it makes it a much smoother process.
Enrolling in a wrap-up may be a little time consuming, but as with anything, this can be kept to a minimum if you understand upfront what you’re facing and lean on those who can help you.
- Wraps-Ups: Not Just for the Big Guns
- Wrap-Up Flyer
- Alternative Risk Flyer
- Guaranteed Cost vs. Loss Sensitive
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