Construction workers law steel reinforcing at a 18-story, office tower being built on the east bank of the Cuyahoga River in Cleveland. (AP Photo/Mark Duncan)

Construction projects are complex and potentially messy undertakings. Both the owner and general contractor face a swarm of unpredictable variables, and liability insurance can lead to a construction project's long-term success or disastrous ruin. That is according to a recent article from GlobeSt.com sister publication, ALM's PropertyCasualty360.

For potential financial advantages, coverage enhancements, collective coverage uniformity, and coordinated claims handling, a wrap-up policy may be the smartest choice for success.

What is a wrap-up?

What exactly is a wrap-up? It's a general liability and/or workers' compensation/employer's liability policy covering all participating contractors on a construction project under one primary insurance policy from the project's construction phase to its completed operations phase.

The traditional wrap-up policy approach was developed as a combined program with the same insurance carrier for both primary general liability and workers' compensation/employer's liability on mega-infrastructure projects. Once a predominantly standard market product, there is now a robust “GL-only” wrap-up market in the non-standard marketplace.

Having one party collectively purchase insurance for all contractors on a specific project was a major breakthrough in a world of individual policies. The individual approach is still widely used today, but due to varied carriers, rates, terms, conditions, coverages, and the unpredictable nature of future renewals, the wrap-up policy has emerged as a viable and often preferred alternative.

The opportunity to purchase a wrap-up extends to virtually any size project and segment of the construction industry. While most traditional wrap-ups cover projects of $100,000,000-plus, construction projects with costs smaller than $1,000,000 have been written on a GL-only wrap-up basis.

To read more about financial feasibility, check out the full article by clicking here.

For potential financial advantages, coverage enhancements, collective coverage uniformity, and coordinated claims handling, a wrap-up policy may be the smartest choice for success.

What is a wrap-up?

To read more about financial feasibility, check out the full article by clicking here.

Instant Insights /

The Swarm of Unpredictable Variables in Construction Projects

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