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. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center