Wrap-Around Insurance Program

Updated: 09 June 2023

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.

Related Reading

Go back to top