Wrap-Up Insurance Program

Overview

A wrap-up insurance program is a centralized insurance arrangement used on large construction projects where a single policy covers all or most parties involved — including the project owner, general contractor, and subcontractors. Instead of each contractor maintaining their own separate insurance, the wrap-up provides uniform coverage under one policy. This approach is common on projects valued at $50 million or more, though the threshold varies by market.

How It Works

There are two primary types of wrap-up programs:

• OCIP (Owner-Controlled Insurance Program): Purchased and controlled by the project owner
• CCIP (Contractor-Controlled Insurance Program): Purchased and controlled by the general contractor

In either case, the program sponsor procures a master policy (or set of policies) that covers general liability, workers' compensation, excess liability, and sometimes builders risk for all enrolled parties on the project. Contractors "enroll" in the wrap-up, which means they remove the cost of their own insurance from their bids (a reduction known as an insurance credit) and rely on the wrap-up policy instead.

Typical wrap-up coverages include:

• Commercial General Liability (project-specific)
• Workers' Compensation (project-specific)
• Excess / Umbrella Liability
• Builders Risk (optional)
• Professional Liability (optional, for design-build projects)

Compliance Relevance

Wrap-up programs create a fundamentally different compliance dynamic compared to standard COI tracking:

• Enrolled vs. non-enrolled parties: Not all contractors may qualify for or be enrolled in the wrap-up. Non-enrolled parties still need their own insurance and COIs.
• Dual tracking: Compliance teams must track both enrollment status and traditional COIs for non-enrolled parties.
• Off-site work exclusions: Most wrap-ups only cover work performed at the project site. Off-site fabrication or work at other locations requires the contractor's own policy.
• Completed operations tail: Wrap-up policies include a completed operations tail — typically 3 to 10 years — that provides post-project coverage. Tracking this tail period is a long-term compliance obligation.

Compliance platforms managing wrap-up projects need the ability to distinguish between enrolled and non-enrolled contractors and apply different insurance requirements accordingly.