The owner, contractors, and subcontractors are all covered by wrap-up insurance. Because it eliminates the need for each contractor and subcontractor to purchase their own liability insurance, wrap-up insurance is crucial.
There may be coverage gaps or inadequate limits if there are multiple policies. Wrap-up insurance, on the other hand, is more effective at guaranteeing adequate coverage for all liability risks.
Take, for instance, an owner-controlled insurance program that the owner purchases on behalf of the contractor or builder.
Workers’ compensation, general liability, excess liability, pollution liability, professional liability, builder’s risk, and railroad protective liability are all included in the insurance, excluding add-ons.
The general contractors and subcontractors can split the cost of wrap-up insurance, which can be costly.
