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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 webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
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Conducted on Wednesday, September 25, 2019

Recorded event now available

or call 1-800-926-7926

This CLE course will guide construction counsel, construction executives, and insurance brokers in addressing the issues and pitfalls with commercial and residential wrap 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, and how to involve entities not enrolled in the wrap and their insurers with a focus on priority of coverage and state anti-indemnity statutes.


With construction booming, contractors and developers are turning to project-specific wrap-up insurance programs to insure such projects and to rolling (multi-project) wrap-ups. Whether structured as an owner controlled insurance program (OCIP) or a contractor controlled insurance program (CCIP), the benefits of wrap-up programs include expanding the bidding pool for difficult-to-insure projects such as condominiums, the ability to tailor coverage to the construction exposures at a project and to avoid disputes among multiple insurers by covering the key players under the same program.

Wrap-up programs must be carefully negotiated and structured. And while such an approach allows the parties to tailor the insurance to the project, it is also rife with potential pitfalls. Wraps have terms, conditions, and exclusions that require analysis and negotiation, as well as specified limits of liability and fixed beginning and ending dates.

There is no standard wrap policy form, and there frequently is little case law guidance on the workings and interpretations of these programs different from the law applying to the constituent parts of the program. 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
    4. 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 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?


Jacoby, Fred
Fred Warren Jacoby

Vice Chairman
Cozen O'Connor

Mr. Jacoby is a commercial litigator with an emphasis on construction law. He has notably diverse experience and is a...  |  Read More

Masters, Jeffrey
Jeffrey D. Masters

Cox Castle & Nicholson

Mr. Masters is a litigator and Co-Chair of the firm’s Development Risk Management and Insurance Coverage...  |  Read More

Quinteros, Carlos
Carlos Quinteros

Senior Vice President
Aon Risk Services

Mr. Quinteros leads Aon’s Los Angeles Group and provides critical support and expertise on residential market...  |  Read More

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