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

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center