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Avoiding Gaps in Wrap Insurance Coverage for Construction Projects

Conflicts and Reservations; Subrogation; Insufficient Limits; Reservations of Rights; Deductibles and Retentions; Insolvency

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, February 27, 2024

Recorded event now available

or call 1-800-926-7926

This CLE course will guide construction counsel, construction executives, and insurance brokers in addressing issues arising from the use of wrap-up insurance programs and the coverage issues that often arise--including potential coverage gaps and eroding or inadequate limits--from the perspective of both the insurer and the insured. The panel will discuss practical alternatives to transfer risk outside of the wrap-up. The panel will also address how to involve entities not enrolled in the wrap and their insurers with a focus on priority of coverage and state anti-indemnity statutes.


Wrap-ups, also known as owner-controlled (OCIP) or contractor-controlled (CCIP) insurance policies, are designed to reduce costs, provide greater control over loss prevention, and minimize litigation on construction projects by centralizing some of the project participants' key insurance coverage(s) into a single project-specific program. Owners, developers, and contractors frequently utilize wrap-up insurance programs to insure their construction projects and to better limit unforeseen coverage gaps.

Wrap-up programs must be carefully negotiated and structured. And while such an approach allows the parties to tailor the insurance to the project, wrap-ups can present potential pitfalls. There is no standard wrap-up policy form, and there is little case law guidance on the workings and interpretations of these programs. Savvy counsel must recognize innovative options and potential issues at the outset.

Listen as our authoritative panel of experienced construction insurance counsel addresses the issues and pitfalls with wrap insurance programs, the coverage issues that often arise, including coverage gaps and eroding or inadequate limits, practical alternatives to transfer risk outside the wrap-up, and strategies to involve non-enrolled entities and their insurers.



  1. Overview of commercial and residential wrap-up insurance programs
  2. Common issues with wrap-up insurance
    1. Program structuring and coverage issues
    2. Terms, conditions, limitations, and exclusions
    3. Interaction with indemnity provisions and other risk transfer provisions in construction contacts
  3. Practical considerations and strategies


The panel will review these and other key issues:

  • What coverages are typically included and which are generally excluded?
  • What are the primary issues and pitfalls with wrap-up insurance programs?
  • What are the most common coverage issues that arise?
  • How does policy language impact coverage and what coverage gaps could result?
  • How do wrap-ups relate to construction defect issues?
  • How are additional insured and contractual indemnification issues resolved?
  • What are practical alternatives to transfer risk outside of the wrap-up?
  • What are the strategies for involving non-enrolled other entities and their conventional, non-wrap insurers?


Bobotek, James
James P. (Jamie) Bobotek

Pillsbury Winthrop Shaw Pittman

Mr. Bobotek guides clients through all phases of development and construction of commercial properties, including...  |  Read More

Musitano, John
John R. Musitano, Jr.

Musitano Law

Mr. Musitano is founder and principal of Musitano Law PC in Southern California, specializing in insurance,...  |  Read More

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