Wrap-Up Insurance

What Does Wrap-Up Insurance Mean?

Wrap-up insurance is a liability policy that covers all liability exposures for a large group that shares a common interest or is involved in a specific project. For example, wrap-up insurance can cover multiple businesses working together on a construction project, providing coverage for losses arising from the work done by all parties involved. This type of policy streamlines coverage by consolidating multiple liability policies into a single policy for the entire group.

Insuranceopedia Explains Wrap-Up Insurance

A wrap-up policy consolidates insurance coverage for multiple general contractors and subcontractors working on a project into a single program, which is negotiated, purchased, and managed by one sponsor. There are two main types of wrap-up policies: owner-controlled (where the project owner is the sponsor) and contractor-controlled (where the general contractor is the sponsor). These consolidated policies often include various types of coverage, such as general liability, excess liability, workers’ compensation, and builder’s risk insurance. Buying a wrap-up policy can be more cost-effective than having every contractor and subcontractor purchase their own general liability insurance and workers’ compensation policies, since the sponsor can negotiate one set of terms and limits across the whole project. Contractors weighing whether to join a wrap-up program or carry their own coverage often want to know how much general contractor insurance costs on its own first, so they can compare.

A construction wrap-up program can cover either a single project or, in the case of a “rolling wrap-up,” multiple designated projects over time.