Wrap-Up Insurance

A A A

DEFINITION

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.

INVESTOPEDIA EXPLAINS

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.


RELATED TERMS
  1. Wrap-Around Insurance Program

    Provides punitive damages insurance for employment practices liability claims. ...
  2. Umbrella Personal Liability Policy

    A type of insurance policy that provides excess coverage above and beyond the ...
  3. Workers' Compensation

    A state-sponsored system that pays monetary benefits to workers who become injured ...
  4. Mortgage Insurance

    An insurance policy that protects a mortgage lender or title holder in the event ...
  5. Insurance

    A contract (policy) in which an individual or entity receives financial protection ...
  6. Insurance Underwriter

    A financial professional that evaluates the risks of insuring a particular person ...
  7. Reinsurer

    A company that provides financial protection to insurance companies.
  8. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s ...
  9. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose deaths were ...
  10. Level Death Benefit

    A life insurance payout that is the same whether the insured person dies shortly ...
Related Articles
  1. 6 Reasons To Avoid Private Mortgage ...
    Home & Auto

    6 Reasons To Avoid Private Mortgage ...

  2. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  3. Long-Term Care Insurance: You Have Options
    Options & Futures

    Long-Term Care Insurance: You Have Options

  4. Top Tips For Cheaper, Better Car Insurance
    Options & Futures

    Top Tips For Cheaper, Better Car Insurance

  5. Life Insurance: Putting A Price On Peace ...
    Insurance

    Life Insurance: Putting A Price On Peace ...

  6. Let Life Insurance Riders Drive Your ...
    Options & Futures

    Let Life Insurance Riders Drive Your ...

  7. 6 Good Reasons To Get Renter's Insurance
    Insurance

    6 Good Reasons To Get Renter's Insurance

  8. How Cash Value Builds In A Life Insurance ...
    Insurance

    How Cash Value Builds In A Life Insurance ...

  9. 6 Ways To Capture The Cash Value In ...
    Insurance

    6 Ways To Capture The Cash Value In ...

  10. Passing Boomers Will Leave A Big Economic ...
    Investing Basics

    Passing Boomers Will Leave A Big Economic ...

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center