A wrap-up is the consolidation of workers’ compensation, excess/umbrella and general liability insurance coverage for all or most of the entities working on a project. Construction companies submitting bids for the jobs are asked to deduct these insurance costs from their bids. The wrap-up administrator then purchases coverage for the job. Once engaged in the project, the contractor’s cost of insurance is deducted from the payments it receives as the project goes forward.

Wrap-ups are becoming more popular and frequently occur on government-funded projects like highways, bridges, schools, airports, prisons and military bases. Large mixed-use (hotel, office building, residential) complexes, entertainment venues and sports stadiums frequently use wrap-ups.