Wrap-Up Insurance

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Wrap-Around Insurance Program

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

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

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

    An insurance policy that protects a mortgage lender or title ...
  5. Insurance

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

    A financial professional that evaluates the risks of insuring ...
Related Articles
  1. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  2. 6 Reasons To Avoid Private Mortgage ...
    Home & Auto

    6 Reasons To Avoid Private Mortgage ...

  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

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center