what is wrap up insurance 
wrap up insurance is a liability policy that serves as an all encompassing insurance that protects all contractors and subcontractors working on large projects costing over 10 million the two types of wrap up insurance are owner controlled and contractor controlled 1owner controlled insurance is set up by the owner of a project for the benefit of the builder or contractor to cover all listed contractors the general contractor meanwhile may use a contractor controlled insurance program to extend coverage to all the contractors and subcontractors signed up on the project 2understanding wrap up insurancethe intent of a wrap up insurance policy is to provide peace of mind that everyone involved in a project is insured properly wrap up insurance is sweeping blanket coverage that protects the owner contractors and subcontractors 1 wrap up insurance is important because it avoids the need for every contractor and subcontractor to obtain their own liability insurance if there were several policies there might be gaps in the coverage or insufficient limits instead wrap up insurance is more effective at making sure that all of the liability risks are covered adequately for example consider an owner controlled insurance program purchased by the owner on behalf of the builder or contractor counting add ons the insurance includes 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 the cost can be divided among the general contractors and sub contractors types of wrap up insurance coveragewrap insurance covers a number of risks for you your project and your workers policies can vary but may include this covers all liabilities for a project including bodily injury coverage against third party injuries that occur on the site or if those injuries are the result of work related activities by the contractor subcontractor or owner also it protects third party property against damage caused by anyone covered under the policy 3builders risk covers for any water weather and fire damages to a building under construction in other words builders risk is essentially the same as property insurance except this covers buildings under construction 4umbrella insurance provides coverage beyond the coverage limit for a general liability policy 5 for example let s say a general liability policy covers up to 2 million in damages and the umbrella liability policy provides 10 million in coverage if there was a 8 million dollar claim the general policy would cover first 2 million while the remaining 6 million from the claim would be covered by the umbrella policy workers compensation provides coverage for workers compensation insurance to all of the enrolled contractors or subcontractors on the project 6commercial vehicle insurance covers cars vans trucks or specialty vehicles used on the construction project against liability claims and property damage 7this covers property damage of all the parties named on your policy also equipment floaters for specialized equipment and tools can be added as well as inland marine insurance for tools and equipment that have been transported to and from the job site 8wrap up insurance policies may have specific exclusions be aware that any of the items mentioned above may be explicitly disallowed from coverage 