What Wrap Up Exclusions Mean to You
Many contractors have a Wrap Up Exclusion in their corporate insurance policy. Yet, many do not know or understand what this really means and how it impacts them. If you are a contractor who works on wrap up projects, read on!
A Wrap Up Exclusion commonly states that anytime the contractor works on a wrap up project, their corporate insurance carrier will exclude coverage for that project. In some cases, this language can sometimes be amended by an endorsement. However, many insurance companies may not amend it because it can involve them in future claims. Unfortunately, this can be problematic for contractors who work on wrap up projects.
On a wrap up project, a contractor is usually enrolled in the insurance program for the length of their contract. Upon the completion of their work, they are ‘closed out’ of the program. However, they are still covered under the wrap up master policy for a specific amount of time after the project ends in case of unforeseen circumstances. If a claim were to rise after this period of time and the wrap up master policy was expired, the contractor would naturally look to their insurance carrier for coverage. However, if the contractor had a Wrap Up Exclusion, then they become responsible for the entire claim.
Fortunately, having a trustworthy and knowledgeable insurance carrier can help with this. Agents are able to work with insurance carriers to amend policies and remove certain language. Contractors should find insurance through a carrier who is well-versed in handling special insurance coverage.
At Nahai Insurance Services, we can assess your unique business and its unique risks, then craft you the right coverage so you can have the protection you need at the premiums you deserve. Contact us to get started on your tailored coverage.
