In one of our recent reviews of wrap-up exclusions on a subcontractor’s policy, we came across this language, and it’s very limiting – for both enrolled and excluded contractors.
Take a look – you’ll notice the highlighted section states their GL coverage does not apply for work related to the project, at or away from the project site.
This is not acceptable because the wrap-up only applies to on-site operations for enrolled subs. There is a gap in coverage if the sub is enrolled and has offsite operations related to the project. If the sub is excluded and has this endorsement on their policy, any work they do (on or off the project site) would not be covered. That’s an issue.
Key takeaway: Make sure you read the language on your subcontractor’s wrap-up exclusion. Look out for this endorsement or wording, and request that it be removed or replaced with more acceptable language.
This past year we helped numerous GCs and owners modernize their wrap-ups, resulting in cost savings for better coverage with no gaps. Teaming up with the highest quality wrap-up administrator will make all the difference to the success of your program. Thinking about a wrap-up for your project – let’s talk! Get a consultation here
If you have any questions regarding anything wrap-up related visit our You Ask. We Answer page. We love hearing from our readers!