What Does Wrap-Around Insurance Program Mean?
A wrap-around insurance program is a policy that provides punitive damages insurance for employment practices liability (EPL) claims. It is also called an offshore wrap-around policy, because it “wraps around” an admitted EPL insurance (EPLI) policy, providing coverage only for punitive damages resulting from a claim under the EPLI policy.
This type of policy is also available in employer-provided group health insurance coverage to individuals and families who cannot afford the employer-provided minimum value coverage group health plans.
Insuranceopedia Explains Wrap-Around Insurance Program
In health Insurance, the wraparound plan covers benefits or providers not covered by the individual health insurance coverage. An employer wthat sponsors the wrap-around coverage must also sponsor another group health plan. Eligibility requirements for both the wrap-around and the primary plan are the same.
A wrap-around program is also a program designed as protection for political risk (action taken by a foreign government resulting in financial loss to companies trading or investing overseas). Coverage is provided for deprivation, acts of government, embargo, sanction, partial loss, and forced abandonment.