Insurance Built for Contractors

Wrap-Up Liability

Wrap-Up Liability is intended to protect everyone involved in a construction project from the threat of third-party and general liability exposures. This covers everyone under a single policy and could include each contractor and subcontractor, as well as project owners.

Wrap-Up Liability Insurance is an essential tool for large-scale construction projects involving various contractors and subcontractors, providing a streamlined approach to liability coverage that can significantly benefit multiple stakeholders. Project owners and developers can gain enhanced control over liability protection, and therefore reducing the potential gaps in coveragethat could lead to costly claims. General contractors can avoid the pitfalls of inconsistent insurance policies among subcontractors, ensuring uniformity and compliance across the project. Municipalities and government agencies can secure appropriate coverage for infrastructure and public works initiatives, ultimately protecting public interests.

Additionally, large subcontractors can participate in a centralized insurance program, alleviating the burden of maintaining separate liability coverage, ultimately fostering a more efficient and cohesive project environment.

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Wrap-Up Liability Insurance Experts

Wrap-Up Liability Insurance is essential for project owners and developers to ensure uniform liability coverage among contractors, for general contractors to streamline risk management and avoid coverage gaps, and for municipalities and public entities to safeguard large-scale infrastructure projects. Construction managers also benefit from centralized liability coverage, providing peace of mind for sizable projects such as commercial buildings, residential developments, infrastructure like bridges and highways, and facilities including hotels and hospitals.

What You Need to Know about Wrap-Up Liability

Avoids Coverage Gaps & Inconsistent Policies

When every contractor and subcontractor secures their own liability insurance, coverage can vary significantly. Some policies may have exclusions, inadequate limits, or expired coverage, leaving gaps that put the entire project at risk.

Example: A subcontractor had insufficient liability limits, and after a serious workplace accident, the project owner was sued for damages. The owner had to cover costs out-of-pocket because there was no central policy in place.

Protects Against Large Third Party Liability Claims

Construction sites are inherently high-risk environments, and even a minor accident can lead to a multi-million-dollar lawsuit. Without proper coverage, project owners and contractors could face devastating financial consequences.

Example: A pedestrian walking past a downtown construction site was struck by falling debris and suffered serious injuries. The Wrap-Up policy covered medical costs, legal fees, and settlement costs—preventing a lawsuit from crippling the project’s finances.

Simplifies Claims Handling & Risk Management

With multiple contractors and subcontractors involved in a project, claims disputes can be complex and time-consuming. A single Wrap-Up policy eliminates different insurance providers and ensures faster, more efficient claims resolution.

Example: A fire at a construction site damaged an adjacent retail building. Under traditional insurance, multiple subcontractors’ insurers would argue over who was responsible, delaying payouts. The project owner’s policy covered the claim directly, expediting repairs and avoiding litigation.

Lowers Insurance Costs for Larger Projects

Wrap-Up Insurance can lead to significant cost savings by consolidating coverage into one master policy, eliminating the need for each contractor to maintain individual liability policies. This reduces overall premiums through bulk purchasing power, the removal of individual coverage requirements for contractors, and lower administrative costs by managing fewer policies.

Example: A general contractor working on a $50 million office tower project saved thousands in insurance costs by purchasing a Wrap-Up policy instead of requiring subcontractors to carry separate liability coverage.

Ensures Compliance with Lenders

Many lenders and project owners require comprehensive liability protection before financing a project, and a Wrap-Up policy demonstrates strong risk management, making it easier to secure financing, meet contractual requirements, and reduce legal disputes. A Wrap-Up not only simplifies insurance management but also enhances the overall safety and accountability of the project.

Example: A city government refused to approve a new transportation hub project until the developer secured a Wrap-Up Liability policy, ensuring all contractors were covered under a single, uniform policy.

Wrap-Up Liability Streamlines Insurance and Reduces Your Risk

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Wrap-Up Liability