Premium Allocation Works

Whether builders choose to do it themselves or outsource it to a third party, successful Premium Allocation negotiations for wrap policies require comprehensive knowledge of the entire process.

DBH Resources (DBHR) allocates contributions towards the wrap premium by carefully analyzing the subcontractor’s current General Liability rates and working with the subcontractors to determine a contribution rate that is fair. When contracting with DBHR for this wrap-up service, a builder can be assured that its subcontractors will become better educated on how they can benefit by contributing towards the policy premium.

“People are still questioning whether Premium Allocation is effective and whether the builder gets money back towards the wrap-up premium,” says Mario Serna, Director of Wrap-Up Services. "When done correctly, Premium Allocation does work, and trade contractors are more accurate in their contributions when they know that a reputable third-party administrator, such as DBHR, is providing the necessary oversight.”

Effective wrap-up administration is a win-win situation for builders and subcontractors alike. wrap-ups enable subcontractors to work on projects that may have been excluded from their own General Liability coverage. And, when builders contract for Premium Allocation services with DBHR, they can recoup some of their premium dollars.