Wrap-Around Insurance Program
What Does Wrap-Around Insurance Program Mean?
A wrap-around insurance program is a policy designed to provide coverage for punitive damages in employment practices liability (EPL) claims. Often referred to as an offshore wrap-around policy, it “wraps around” an admitted EPL insurance (EPLI) policy, offering coverage exclusively for punitive damages resulting from a claim under the EPLI policy.
This type of policy can also be available in employer-provided group health insurance, offering coverage to individuals and families who cannot afford the employer-provided minimum value coverage in group health plans.
Insuranceopedia Explains Wrap-Around Insurance Program
In health insurance, a wrap-around plan covers benefits or providers not included in the individual health insurance policy. Employers offering wrap-around coverage must also sponsor another group health plan, and the eligibility requirements for both the wrap-around and primary plans are typically the same.
A wrap-around program can also refer to a protection plan for political risks, such as actions taken by a foreign government that result in financial loss for companies trading or investing overseas. This coverage typically includes protection against deprivation, acts of government, embargoes, sanctions, partial losses, and forced abandonment.
