Wrap-Up Liability Insurance
Large-scale construction projects come with big budgets and even bigger risks. In March 2024 alone, Canada’s top 10 construction projects exceeded $4.6 billion, underscoring the high stakes for developers, contractors, and project owners. With so many parties involved, from general contractors to tradespeople and subcontractors, coordinating liability coverage can quickly become costly, fragmented, and inefficient.
That’s where wrap up liability insurance comes in. Also known as wrap up insurance or construction wrap up insurance, this all-in-one solution consolidates multiple coverages under a single policy, providing consistent, project-wide protection for all named parties.
At KASE Insurance, we help developers and builders secure the right wrap-up liability insurance in Canada, tailored to the scope, risk profile, and complexity of your project. Building new infrastructure, a high-rise condo, or large-scale renovations—KASE ensures your project is protected from day one.
What Is Wrap Up Liability Insurance?
Wrap-up liability insurance is a consolidated insurance policy that covers all the contractors, subcontractors, and other parties involved in a single construction project under one master policy. It’s typically sponsored by either the project owner (OCIP) or the general contractor (CCIP).
Unlike traditional insurance models, where each party obtains their own coverage, wrap-up insurance policies reduce gaps in protection, prevent duplicate coverage, and streamline claims processing. This type of insurance is commonly used on large public or private projects where the value or complexity of the work makes coordinated coverage a smarter, more efficient solution.
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Why Is Wrap-up Liability Policy Insurance Important?
Wrap up insurance is important because it provides unified, project-specific coverage that protects all parties involved in a construction project. This approach simplifies risk management, reduces coverage gaps, can lower total insurance costs, and ultimately provides peace of mind while working on a site.
Unified Protection
One wrap up liability policy ensures consistent coverage terms for everyone involved, minimizing inconsistencies and overlaps. This includes coverage limit, which is usually much higher.
Cost Savings
Bundling coverage can reduce overall premiums and administrative expenses compared to each party sourcing their own policy.
Improved Risk Management
Project owners or general contractors gain more control over insurance terms, exclusions, and safety protocols.
Fewer Coverage Disputes
A single policy reduces the risk of finger-pointing between insurers when claims arise.
What Does Wrap-up Liability Insurance Cover?
Wrap up liability insurance is designed to protect against a range of liability risks inherent to construction projects. Coverage typically includes:
✓ Bodily Injury & Property Damage: Commercial general liability insurance covers third-party bodily injury, property damage, and personal injury claims arising from the construction project.
✓ Completed Operations Coverage: Whether it’s a structural issue or property damage tied to faulty installation, wrap-up insurance provides protection long after work is done.
✓ Contractor’s Pollution Liability: Covers pollution-related incidents, such as the release of hazardous materials during construction activities.
✓ Employer’s Liability (if applicable): Provides protection against lawsuits filed by employees of enrolled contractors or subcontractors for work-related injuries not covered by workers’ compensation.
A wrap up insurance policy ensures all enrolled parties are covered under the same terms and limits, reducing the likelihood of disputes between contractors over whose insurance provider should respond to a claim. With centralized coverage in place, claims are resolved more efficiently and consistently.
Types of Insurance Construction Projects Should Have
Construction projects face a wide range of risks. To protect the project, stakeholders, and the public, it’s critical to have the right combination of insurance policies in place. While wrap-up liability insurance provides broad, consolidated coverage, it often works alongside other essential policies to ensure full protection.
At KASE Insurance, we help our clients understand the full picture and secure tailored protection.
Commercial General Liability Insurance
Commercial general liability insurance provides broad protection for claims involving third-party bodily injury, property damage, or personal injury caused by project activities.
Builder’s Risk Insurance
Builder’s risk insurance covers physical damage to buildings and materials during the construction period, including fire, vandalism, and weather-related events.
Pollution Liability Insurance
Pollution liability insurance protects against environmental liabilities resulting from construction work, such as soil contamination or hazardous material spills.
Professional Liability Insurance
Also known as errors and omissions insurance (E&O insurance), professional liability insurance protects architects, engineers, and consultants against claims of negligence or design flaws.
Equipment & Tool Insurance
Protects valuable machinery and tools from damage, loss, or theft while on the job site or in transit.
Workers’ Compensation Insurance
Required by law in most jurisdictions, it provides wage replacement and medical benefits to employees injured on the job.
Commercial Auto Insurance
Commercial auto insurance covers company-owned or leased vehicles used on the job site or for transporting materials and workers. It protects against accidents, property damage, and liability arising from vehicle use during construction operations.
Who Needs Wrap-up Liability Insurance?
Wrap insurance policies are ideal for large construction projects that have a value of $5 million and above. This is also highly recommended for civil works projects such as dams, bridges, water mains, and more, regardless of project value.
Industries that benefit from this type of insurance include:
General contractors managing major builds can benefit from centralized risk management through a construction wrap up insurance policy. It provides comprehensive coverage and makes it easier to enforce consistent safety practices across multiple job sites.
From electrical and plumbing to roofing and HVAC, individual trades are protected under one trades insurance policy. Having wrap-up coverage reduces the administrative burden on each subcontractor, allowing them to focus on delivering quality work.
Projects involving custom design, fabrication, or installations benefit from cohesive coverage across unique trades. This ensures specialized work is protected from liability claims without requiring individual policy management.
Large-scale developments like condominiums or mixed-use buildings require streamlined insurance across all contractors. Wrap-up policies support development timelines by simplifying coordination between construction teams and reducing delays caused by insurance issues.
Hospitals, schools, transportation projects, and government buildings rely on wrap-up policies to manage liability, reduce administrative burden, and meet strict regulatory requirements with unified coverage.
Why Choose KASE Insurance For Wrap-Up Liability Insurance
Partner with an award-winning insurance broker to implement a tailored wrap up liability program that protects your entire construction team and your bottom line.
KASE Insurance specializes in securing customized wrap up liability insurance solutions for complex construction projects in Ontario. From streamlined claims handling to robust coverage limits, our experts will guide you every step of the way.
• Customized strategy: Set up a unified wrap-up policy that fits your project needs
• Cost savings: Optimize premiums and reduce administrative overhead
• Full compliance: Meet regulatory and contract requirements across Canada
We represent your best interests—not the insurer’s—so you get unbiased advice, flexible options, and access to the best Canadian insurance providers.
Ready to secure smart, scalable protection for your next project? Get started today and learn how we can simplify risk management from the ground up.
Read what clients have to say about KASE
By far the most professional and trustworthy insurance brokerage I have known. We have been working with this firm for number of years now and I have nothing but good to say about their team and services. Stan and his team won't stop until we are fully satisfied. They are always on top of things, super fast in their assistance and very professional. I highly recommend this firm to anyone seeking for great insurance brokerage to work with. Big Thank You to Stan and Kase Insurance for many many years of great service!
Reviewer: Alex K
out of 5 stars
Stan and is team at KASE Insurance have been fantastic in explaining what insurance we needed for our business. Very hands on approach and detailed. I work highly recommend KASE Insurance for any business owner looking for great service.
Reviewer: Kyle Grooms
5 out of 5 stars
The KASE team is very easy to work with. They answer your questions quickly, walk you through the process patiently, and find you great rates. We've been working with them for a few years and we haven't felt the need to shop elsewhere because of their customer service.
Reviewer: Sasha Boersma
5 out of 5 stars