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Fact Sheet

What is a wrap-up?

A wrap-up is the consolidation of workers' compensation, excess/umbrella and general liability insurance. Purchased by the project sponsor, the insurance is used to cover the interest of the various entities brought together for a single construction project, allowing the sponsor to enforce safety and loss control programs.

Where wrap-ups occur:

Typical projects are federal, state and county projects, including highways, military bases, airports, prisons, schools. Commercial projects like hotels, shopping malls, hospitals, apartment complexes, and entertainment/sports facilities are also often involved in wrap-ups.


  • Owner-paid wrap-up insurance = Owner Controlled Insurance Program (OCIP).
  • Contractor-paid wrap-up = Contractor Controlled Insurance Program (CCIP).
  • Rolling wrap-ups are used when the same owner has several projects on multiple sites.

Wrap-up benefits to sponsors:

  • Lower insurance cost and higher liability limits than contractors can usually obtain on their own.
  • Less subcontractor litigation because everyone is covered by the same policy
  • Increased sponsor supervision of safety and loss control programs, which usually produces stringent safety programs.

Detriments for contractors and subcontractors:

  • Complicated, non-uniform insurance deduction worksheets can lead contractors to misrepresent their true cost of insurance and lose profit in the job.
  • Safety fines and penalties can start at $500 and go up to $2,500 per violation, and contractors do not typically learn about these until they have signed the contract.
  • Subcontractors may not be properly protected by a waiver of subrogation.
  • The premium on the contractor's traditional policy may go up when payroll is shifted to a wrap-up.
  • Additional administrative and accounting costs due to the need to maintain duplicate payroll records to segregate wrap-up costs from other project expenses and audits of each wrap-up insurance program in addition to traditional program audits.

Why should insurance agents care?

  • Insurance agents are losing revenue from reduced commissions on traditional insurance program premiums as more projects are being covered by wrap-ups.
  • The wrap-up situation creates an excellent opportunity for insurance agents to offer fee-based consulting services help their clients prepare proper bids and check for errors in payroll and end-of-project audits.
  • New business tool - a way to get in front of a prospective client, by reviewing wrap-up documents.
  • Possible Errors and Omission (E&0) exposure if contractor asks for advice and review.

More information

Wrap-up Expert Duke Mills has published the "Contractor Survival Guide for Wrap-Ups," a concise, easily followed manual featuring worksheets, flow charts, tips, and information on fines and deductibles. This guide is designed to protect contractors' profits due to bid errors, Experience Modification mistakes, coverage gaps and audit overpayments. While ultimate end-users are contractors and large subcontractors, the survival guide provides a valuable sales and service tool for workers' compensation and general liability insurance agents.

Wrap-up Experts offers consulting services to Florida contractors and training and education to insurance agents. Information on these services is available by emailing info@wrapupexperts.com or by calling 863-646-4642.


Duke Mills, Wrap-Up Experts, 863-646-4642 Duke@wrapupexperts.com

To schedule Duke Mills as a guest speaker for your next association meeting, contact Duke at Duke@WrapUpExperts.com or 863.646.4642

Media Contact: Helen King Knight, APR, King Knight Communications, 813-837-1701 helen@kingknight.com