What is the purpose of construction wrap up liability insurance?

The purpose of construction wrap-up liability insurance is primarily to bundle liability and workers' compensation insurance, addressing coverage gaps that may exist in typical policies held by various contractors and subcontractors. This type of insurance is designed to cover all parties involved in a construction project, which can lead to a more streamlined approach to risk management during the project's lifecycle.

By consolidating these various coverages into a single policy, a wrap-up policy reduces the potential for disputes over who is responsible for claims and simplifies administration, as there is one policy manager. This comprehensive approach can protect against a range of liabilities, including bodily injury and property damage associated with the construction process, ensuring that both general contractors and subcontractors are adequately covered throughout the duration of a project.

Being a centralized insurance solution enhances efficiency and potentially reduces costs for all parties involved in a construction project. This is particularly beneficial in large-scale projects where multiple subcontractors operate simultaneously and diverse insurance policies could create complications in coverage.