What is 'Wrap-Up Insurance '
Wrap-up insurance is a liability policy that serves as all-encompassing insurance which protects all contractors and subcontractors working on a large project. Wrap-up insurance is intend for larger construction project costing over $10 million. Two types of wrap-up insurance are owner-controlled and contractor-controlled.
BREAKING DOWN 'Wrap-Up Insurance '
For example: The owner-controlled insurance program (OCIP) is purchased by the owner on behalf of the builder or contractor. Included in the insurance are workers compensation, general liability, excess liability, pollution liability, professional liability, builder's risk, and railroad protective liability. While the cost of wrap-up insurance can be expensive, it can also be divided among general contractors and sub-contractors, thus spreading the cost.