The main advantage of wrap-up insurance is that it combines insurance coverage for all contractors and subcontractors involved in a construction project into a single policy.
The insurance procedure is streamlined, administrative burdens are reduced, and project stakeholders may save money as a result.
In a related vein, even in the areas that they do cover, wrap-up insurance contracts frequently include a number of conditions, limitations, and exclusions.
These might, for instance, limit coverage to just certain kinds of losses or claims.
Wrap-up insurance for public development projects, for instance, is restricted by New York’s Office of General Counsel.
