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Glossary of WCB Terms

Wrap-Up Workers' Compensation Insurance Policies for Construction Projects


It is standard practice on large construction projects for the main general contractor to take out a workers' compensation insurance policy to cover all workers on a specific construction project job site. This policy is called a wrap-up policy. The wrap-up policy will have an expiration date that coincides with the projected completion date of the construction project.

All legal entity subcontractors are listed as separate policyholders on the wrap-up policy. The general contractor and the majority of the sub-contractors will each also have their own separate workers' compensation insurance policy. These separate policies cover these employers for workers that are performing tasks not related to the specific construction project job site. In fact, insurers routinely require proof of the separate workers' compensation policies for general contractors and their subcontractors before adding them on to a wrap-up policy.

As a result, many contractors will have two or more separate active insurance policies. A "wrap-up" indicator identifies the wrap-up policies.