What is the intended use of a "wrap-up insurance" policy?

The intended use of a "wrap-up insurance" policy is to provide comprehensive coverage for all parties involved in a large construction project under a single policy. This type of insurance consolidates the various coverages needed by different contractors, subcontractors, and sometimes even the project owner, into one policy. This approach simplifies the insurance process by reducing the administrative burden and potentially lowering costs for large projects.

By having a wrap-up policy, project stakeholders benefit from a cohesive coverage framework that protects against liability and ensures that all parties are included under the same terms and conditions. It is particularly beneficial in large construction projects where multiple contractors are working together, as it can help mitigate gaps in coverage and streamline claims processes.

In contrast, other options do not encapsulate the primary purpose of wrap-up insurance. For example, providing individual coverage for each contractor does not offer the unified approach that wrap-up insurance aims for. Exclusively covering a general contractor's liabilities or insuring small remodeling projects falls outside the scope of wrap-up policies, which are specifically designed for larger, complex construction efforts.