What Is Wrap-Up Insurance?

What Is Wrap-Up Insurance?

A liability coverage known as “wrap-up insurance” protects all contractors and subcontractors engaged in major projects that cost more than $10 million. Owner-controlled and contractor-controlled insurance are the two varieties of wrap-up insurance.

The owner of a project creates owner-controlled insurance for the benefit of the builder or contractor to cover all specified contractors. A contractor-controlled insurance scheme may be used by the general contractor to provide coverage to all other contractors and subcontractors engaged in the project.

What is Wrap-up Liability Insurance?

Wrap-up insurance programs, also known as controlled insurance programs (CIPs), are centralized insurance and loss control initiatives created to safeguard the project owner, general contractor, and subcontractors under a single insurance policy or collection of policies for the construction project.

Depending on who is sponsoring the program, insurers often offer two different types of wrap-up insurance programs:

Owner Controlled Insurance Program (OCIP): An OCIP is an insurance plan that is sponsored and managed by the project owner. As a result, the general contractor, subcontractors, and other participants are all named insureds, with the project owner being the first.

The general contractor sponsors and manages the program under a contractor-controlled insurance program (CCIP). The first named insured is the general contractor, followed by the subcontractors and other participants. The project owner is either an additional insured or a named insured, depending on the program.

A rolling wrap-up can be used to ensure numerous, smaller projects under one program, whereas wrap-up insurance schemes are typically used for major, single-site projects.


  • Liability coverage is known as “wrap-up insurance” and serves as comprehensive insurance to safeguard contractors and subcontractors.
  • The owner of a project creates owner-controlled insurance for the benefit of the builder or contractor to cover all specified contractors.
  • All the contractors and subcontractors engaged in the project are covered by an insurance program maintained by the contractors.

Understanding Wrap-Up Insurance

A wrap-up insurance policy’s goal is to give project participants piece of mind that they are all adequately insured. Wrap-up insurance offers comprehensive all-inclusive protection for the owner, contractors, and subcontractors. The benefit of wrap-up insurance is that it eliminates the requirement for each contractor and subcontractor to acquire their own liability insurance. There could be coverage gaps or insufficient limits if there were many policies. Wrap-up insurance, on the other hand, ensures that all liability risks are appropriately covered.

As an illustration, take into account an owner-controlled insurance plan that the owner purchases on the builder or contractor’s behalf. Workers’ compensation, general liability, excess liability, pollution liability, professional liability, builder’s risk, and railroad protective liability are all covered under the insurance when add-ons are taken into account. Even though wrap-up insurance can be expensive, the general contractors and subcontractors can split the expense.

Wrap Policy Assessment

The coverage scope is a crucial factor to take into account when obtaining an insurance policy. It can be challenging to determine how much insurance to buy and how many claims a project might be subject to. Wrap plans are helpful, but they can come with additional costs for the owner, main contractor, or subcontractor on top of a general liability policy that is tailored to the business. This additional expense can be split between the owner, general contractors, and subcontractors, and it will provide you peace of mind knowing that certain project liability risks are “wrapped-up” under one policy.

Klinedinst will assist your company in determining its insurance requirements. Our experienced wrap insurance lawyers will analyze suggested wrap coverage using their expertise in the market to inform clients about whether a policy is appropriate for a certain requirement.

Wrap Insurance Litigation

Courts have not yet extensively explored the nuances of wrap policy coverage and the resulting duties of the insurer and insured. The custom language (or “manuscript”) used by the insurers when drafting these policies may not have been interpreted by the courts. When there is just one insurer available to respond to substantial claims, coverage questions become crucial, especially when the covering insurer has either refused coverage or reserved its rights. In these situations, knowledgeable legal advice is necessary to get through the confusing coverage concerns.

Klinedinst has a lot of expertise in handling these problems. Klinedinst attorneys have decades of experience litigating disputes involving wrap policies and know how to manage the complexity of wrap policies, helping to guarantee a quick and effective conclusion for all parties.

What does wrap-up insurance cost?

You can save time and/or money by getting a good wrap-up insurance coverage in a number of ways:

  • Your insurance is centralized, saving you from wasting time coordinating with many insurance companies.
  • You could be able to receive a discount on wrap-up insurance coverage due to the enormous number of parties insured.
  • In the event of a lawsuit, you won’t need to be concerned about insurance gaps or workers who aren’t sufficiently insured.
  • Although wrap-up insurance has a lot to offer construction workers as a quick, one-step solution, estimating the cost of a policy can be challenging.

Your ALIGNED broker will be able to evaluate the application, analyze the specifics of your project, and then provide you with an estimated cost. Get in touch with us or ask for your FREE wrap-up insurance quote right away!

What is covered under bundled insurance?

Wrap-up insurance, in general, covers the liability risks related to working on construction projects. However, this coverage type is remarkable for allowing several parties to be insured under the same policy in addition to the situations it covers.

This is significant for the following reasons:

First, the construction of a new building frequently involves a number of businesses, teams, and contractors.

And second, because liability insurance is a common practice among people

Wrap-up insurance makes it possible to prevent circumstances where there are litigation challenges and liability worries brought on by coverage gaps and employees with inadequate insurance, in the event that a third party was to stray into the site, sustain an injury, and file a claim.

What is wrap-up insurance for?

The quick response is that managing liability insurance for an ongoing construction project is simpler with wrap-up insurance.

Many construction sites are rife with potential safety dangers due to heavy-duty industrial equipment, machinery operators, construction teams, and building materials. There may be several companies and contractors mentioned on the statement of claim if a third party breaks an arm or a leg while on your property.

It is simpler for the owner or the contractor to make sure that the project is fully insured when there is wrap-up insurance.


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