Wrap-Up Insurance

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DEFINITION of 'Wrap-Up Insurance '

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.

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RELATED FAQS
  1. What happens if my insurance claim falls below the deductible level?

    Though the ins and outs of health insurance are often confusing, the concept of the insurance deductible is relatively straightforward. ... Read Full Answer >>
  2. How is the deductible I paid for my insurance claim treated for tax purposes?

    The deductible you pay on your health insurance policy may be tax-deductible if you meet certain conditions. However, whether ... Read Full Answer >>
  3. What level of reserve ratios is typical for an insurance company to protect against ...

    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
  4. What risks do I face when investing in the insurance sector?

    Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>
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    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
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    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>

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