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.

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.