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Wrap-Up Insurance: Definition & Overview

Updated: November 24, 2022

Different types of insurance policies are going to serve a wide range of purposes. But at the end of the day, each type of policy is designed to help protect you should something unfortunate occur. And there are policies for individuals and for businesses. 

Yet, there can sometimes be a need to have a broad range of coverage depending on the type of business you operate. Wrap-up insurance might be the perfect solution if you engage in regular construction projects. Keep reading our article to learn all the information you need about wrap-up insurance.

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    • Wrap-up insurance is a type of insurance that offers protection for an organization’s entire project.
    • Wrap-up insurance consists of two types: Owner-Controlled Insurance Packages (OCIP) and Contractor-Controlled Insurance Packages (CCIP).
    • An OCIP allows for better cost control and risk management, but it can be difficult to get contractors to sign up for the program.
    • A CCIP provides more flexibility than an OCIP but can be more expensive because each contractor has to purchase their own policy. When choosing a wrap-up insurance policy, it is important to consider the specific needs of your project.

    What Is Wrap-up Insurance?

    Wrap-up insurance combines all the different types of coverage needed for a construction project. And it does so into one comprehensive policy. This means that instead of each contractor having their own separate insurance policies, they are all covered. Wrap-up insurance puts them under the same umbrella policies.

    This type of liability insurance is a policy designed to protect contractors. As an all-encompassing policy, wrap-up also protects subcontractors.

    There are a couple different kinds of wrap-up insurance you want to be aware of. These are OCIP (owner-controlled insurance program) and CCIP (contractor-controlled insurance program).

    The project owner initiates OCIP for the builder’s or contractor’s benefit. These wrap-up insurance packages provide coverage for all contractors listed.

    An OCIP usually includes general liability, professional liability, and environmental impairment liability. Also included are workers’ compensation, and automobile liability coverage.

    We’ll explain the other kinds of wrap-up insurance momentarily. Ultimately, the plan you choose to go with needs to provide adequate protection and coverage.

    Bottom line; wrap-up insurance is a vital tool for managing liability risks on construction projects. It is important to choose the right policy for your project and to make sure all parties involved have protection.

    The nice thing about this insurance is that it provides coverage gaps. This ensures that you get the protection needed in one plan. Even better, you don’t have to enlist in several through different insurance providers.

    Why Wrap-up Insurance?

    Wrap-up insurance can be an important tool for managing risk on construction projects. Imagine the convenience of having all of your insurance needs in one handy plan. You’ll have the peace of mind that your team is safe and protected on the job site.

    Moreover, you’ll have additional protection in various forms, assuming you choose the right plan for your needs. With that said, it is important to choose the right policy for your project. Also, take time to make sure all parties involved are adequately protected. It’s important that you don’t leave anyone out.

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    What Is a Wrap-up Insurance Program?

    A wrap-up insurance program is an insurance policy that protects contractors and subcontractors. There are two wrap-up insurances: OCIP and CCIP.

    OCIP is an owner-controlled insurance package. CCIP is a contractor-controlled insurance program package.

    An OCIP is a policy that is purchased and managed by the project owner.

    The main advantage of an OCIP is that it allows for better cost control and risk management. This is because the owner can negotiate rates with the insurer and choose the coverage limits.

    A CCIP extends coverage to all the contractors and subcontractors signed up for the project. The main advantage of a CCIP is that it provides more flexibility than an OCIP in terms of the types and levels of coverage.

    Types of Wrap-up Insurance Program

    Wrap-up liability insurance comes in many different forms. Take a moment to familiarize yourself with the following types.

    General Liability (Broad Form Endorsement)

    Broad Form Endorsement provides protection for bodily injury, property damage, and personal injury that occurs on the job site. It also covers any legal fees associated with defending against a claim.

    Builders Risk

    What do you get when you purchase builders’ risk insurance? You’re protected against damage to the property during construction. It can also cover loss of income if the project gets delayed due to damage.

    Umbrella Liability

    This type of insurance provides extra protection above the limits of the general liability policy. It can cover claims excluded from the general liability policy, such as libel and slander.

    Professional Liability (Errors & Omissions)

    This type of insurance protects against claims of professional negligence. It can cover any damages awarded to the claimant, as well as any legal fees associated with defending against the claim.

    Key Exclusions

    There are some types of losses that are not covered by wrap-up insurance. These exclusions vary by policy, but common exclusions include:

    • Intentional acts
    • Violation of law
    • Workers’ compensation
    • Claims arising from asbestos exposure
    • Environmental damage

    Workers Compensation Insurance

    Workers compensation insurance covers medical expenses and lost wages for employees who get injured on the job. Wrap-up insurance policies often exclude workers’ compensation coverage. This is because it’s required by law in most states.

    Commercial Vehicle

    This insurance covers vehicles used for business purposes. As such, you’ll have protection against auto damage. Wrap-up insurance policies typically exclude commercial vehicle insurance. This is because it is not required by law and you can buy it on its own.

    Property Damage

    Insurance that covers damage to property. Wrap-up insurance policies exclude property damage because it is not required by law and you can get it on its own.

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    Benefits of Wrap-up Insurance

    There are several benefits of wrap-up insurance, including:

    Reduced Paperwork and Hassle: All the different types of coverage get consolidated into one policy. As such, there is less paperwork for both the contractor and the construction company.

    More Predictable Costs: With a wrap-up policy in place, the cost of insurance is much more predictable since it’s known upfront. This can help with budgeting and cash flow planning.

    Better Coverage: A wrap-up policy often provides better coverage than what the contractors would be able to get on their own. This is because the insurer can tailor the coverage to the specific needs of the project.

    Faster Claims Processing: All the paperwork gets consolidated, making claims processing faster. This is especially beneficial if there is an accident on the construction site.

    Better Protection: Wrap-up insurance offers better protection than traditional insurance. Why? Because it covers all parties involved in the project.

    Lower Costs: Wrap-up insurance can also be cheaper than traditional insurance. This is due to the owner being able to negotiate rates with the insurer.

    Easier Risk Management: Wrap-up insurance makes risk management easier because the owner is in control of the project’s insurance coverage.

    Time Saved: Wrap-up insurance can save time because the owner only has to deal with one insurer.

    Customized Coverage: You can choose to customize wrap-up insurance to fit the needs of your project.

    Claims Control: The owner has more control over the claims process with wrap-up insurance.

    Flexibility: Wrap-up insurance is flexible and you can tailor it to the specific needs of your project.

    It’s worth pointing out that there are a few disadvantages of wrap-up insurance to be aware of, including:

    • More Expensive: Wrap-up insurance can be more expensive than if each contractor had their own separate policy. However, this cost is often offset by the other benefits of having a wrap-up policy in place.
    • Requires Upfront Planning: A wrap-up policy needs to be in place before the construction project begins. This means that there needs to be communication and coordination between all of the different parties involved in the project from the very beginning.

    Project Size Requirements for Wrap-up Insurance

    You can usually expect insurance companies to offer wrap-up policies for projects starting at $10 million. But, as with any insurance policy, there are certain project types and sizes that may be better suited for a wrap-up program.

    The first step is to contact an insurance broker who specializes in construction insurance deals. They will be able to help you assess your specific needs and determine if a wrap-up policy makes sense for your project. Some factors you might want to consider include:

    • The size of the project
    • The type of project
    • The location of the project
    • The experience of the contractors involved
    • What insurance gaps you need covered
    • The financial stability of the contractors involved

    Moreover, your insurance agent can help you compare the costs and benefits of OCIPs and CCIPs to determine which type of policy is right for you.


    A wrap-up insurance policy is a type of liability insurance. It’s all-encompassing insurance protecting contractors and subcontractors. When choosing a wrap-up insurance policy, it is important to consider the specific needs of your project. You should also compare the costs and benefits of OCIPs and CCIPs to determine which type of policy is right for you.

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    Wrap Up Insurance FAQs

    What size project is required for a wrap-up insurance policy?

    Most policies are for large construction projects, with a minimum of $10 million.

    Is a wrap-up insurance policy right for my project?

    It depends on the specific needs of your project. You should compare the costs and benefits of OCIPs and CCIPs. This will help you determine which wrap-up insurance packages are right for you.

    What is wrap up administration?

    Wrap-up administration is the process of setting up and managing a wrap-up insurance program.

    What is a wrap up exclusion?

    A wrap-up exclusion is a type of insurance coverage that is not included in a wrap-up insurance policy.

    What is the difference between owner-controlled insurance and contractor-controlled insurance?

    Owner-controlled insurance programs (OCIPs) are insurance programs that are created and controlled by the owner of a construction project.

    Contractor-controlled insurance programs (CCIPs) are insurance programs that are created and controlled by the contractors working on a construction project.


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