What is a key characteristic of "wrap-up insurance"?

Wrap-up insurance is designed to provide coverage for all contractors and subcontractors involved in a specific construction project under a single insurance policy. This comprehensive approach streamlines the insurance process, as it consolidates various coverages, such as general liability and workers' compensation, into one package. This bundling not only simplifies management and administrative tasks for the project but also ensures that all parties have uniform coverage, minimizing gaps that might occur when individual contractors have separate policies.

The ability to cover multiple parties aids in reducing disputes, enhances safety protocols by promoting a cohesive working relationship among contractors, and can lead to cost savings compared to purchasing separate policies. Moreover, this type of insurance is not limited to a specific type of project, as it can apply to large-scale commercial construction projects and sometimes larger residential developments, making it versatile across different construction scenarios.