Overview
A wrap-up (also called an OCIP/CCIP or project policy) insures a construction project rather than individual firms working on it.
Rather than each contractor buying standalone policies, a single program covers the project’s workforce, contractors, subcontractors, and certain project exposures for the policy term.
Key takeaways
- Wrap-ups centralize coverage so every party shares consistent limits and safety rules.
- Decide early whether the policy will be owner controlled or contractor controlled because that determines who manages costs, audits, and claims.
- Watch for completed-operations tail, deductible allocation, and subcontractor administration when evaluating program risk.
How it works
A sponsor (owner, contractor, or construction manager) purchases a policy that names the project and lists participating contractors and subcontractors.
The controller administers the program: they manage prime-subcontractor enrollment, safety enforcement, premium allocation, audits, and responsibility for deductibles and excess premiums.
Because multiple trades are pooled, the premium is prorated across participants based on payroll, contract value, or agreed formulas, which lets smaller subcontractors work without buying their own high-cost policies.
What it may cover (and what it may not)
Typical wrap-ups include workers’ compensation, general liability, umbrella/excess liability, and property or specific project coverage for on-site risks.
Coverage details and exclusions vary; you should compare policy forms, limits, and exclusions and review topics such as long-term completed-operations exposure and loss-sensitive features.
For related program types and specialty considerations, see Entertainment Wrap Ups and Termination of Work Coverage for more context on project-focused insurance options.
Also review broader construction insurance topics like contract risk transfer and classification auditing at Insurance overview: construction, energy efficiency, fleet maintenance, and workers' compensation.
Common mistakes to avoid
Assuming a wrap-up automatically lowers total cost is risky; administration fees, high deductibles, and audit adjustments can change net expense.
Failing to assign responsibility for completed-operations tails can leave owners or contractors exposed to claims years after work finishes.
Not maintaining an accurate, auditable subcontractor roster or skipping safety program enforcement reduces the primary benefits of a pooled program.
Questions to ask an agent
Who will be the policy controller and what are their responsibilities for deductibles, audits, and excess premium payments?
How does the program handle completed-operations claims and is there an option to purchase tail coverage after project closeout?
What are the enrollment requirements for subcontractors, and how are premium allocations calculated and audited?
Next steps
Start by mapping project participants, contract values, and payroll estimates so you can model premium allocation and deductible exposure.
Request policy forms, a sample enrollment agreement, and the loss control/claims handling procedures for review before committing to a program.
If you want a formal quote or to talk to an agent, gather current payroll, contract values, and a subcontractor list to speed the process.
Frequently Asked Questions
Who pays deductibles under a wrap-up?
The policy controller is typically responsible for deductible payments, but the contract or enrollment agreement will specify how those costs are allocated among participants.
Can a subcontractor still carry a separate policy?
Some programs allow subcontractors to maintain separate coverage if it meets the program’s required limits and endorsements, but duplication is usually avoided.
How long does completed-operations coverage last?
Completed-operations exposure can continue for years; the policy’s terms determine the tail period and whether separate tail coverage is available for the owner or contractor.