We live in an age where more people are becoming their own business owners. Work is no longer done solely by the employees. By focusing on a creating a lean team (lean team link) that focuses only on what your company does best, we learn that we will eventually have a need for contracting. Sometimes you contract work out, but depending on the industry that you are involved in, chances are you are probably often the contractor, bringing your skills and network together to rake in big money and execute amazing task.

Of course, things can go wrong. You can get hurt, or you can mess up something really important. Insurance exist solely for that reason, but it’s usually so specific. Coverage is among a very particular select set of things, and in the event that you need to file a claim and you discover that your insurance doesn’t quite cover everything you thought it did, you would be in a world of trouble.

That is why Wrap-up Insurance exist. What is it exactly? An all encompassing liability policy that protects all contractors and subcontractors on projects over ten million dollars. What does that mean exactly? Everybody that needs to be insured for everything that they need to be insured for is, drumroll please, insured. It’s a blanket policy that covers the owner, the contractor (likely you), and any subcontractors on the project. It’s insurance for sure, but it’s insurance without all of the hassle.

The best part? There are two types of Wrap-up Insurance: Owner-Controlled and Contractor-Controlled. Typically, owner controlled wrap insurance is obtained by, as expected, the owner in order to cover all of the listed contractors. Usually a general contractor would get the insurance and extend it to all other contractors and subcontractors.

So what does it cover? Policies obviously vary, but they may include

• General Liability with a broad form of endorsement
• Builders Risk
• Umbrella Liability
• Worker’s Compensation
• Commercial Vehicle
• Property Damage
• And more

Sure, this all sounds great and theory, but wouldn’t this kind of insurance be expensive? The answer, initially yes. It can be a little more expensive than other kinds of insurances initially, but the savings in the long run are worth it. Disputes are no longer a thing that happens, which can add significant cost to both contractors and owners in the event that something happens. Additionally, wrap-up insurance ensures that everything you need to have covered is covered. It is always less expensive in the long run to be prepared for an accident than to rely on the hope that nothing bad will happen.

Our world is growing fast. Industries are changing rapidly, and we face new challenges each and every day. The one thing that we have going for us is our ability to collaborate and innovate. Talks about insurance, liability and who exactly is culpable are important, but they get in the way of us doing the things that really matter: executing projects that have a real impact people can see. The real shame in life is to be unable to do that anymore because we are unable to come to an agreement.

So look into wrap-up insurance. You are a contractor not solely for the money, but because you are good at what you do, and you make an impact. And if you are an owner, you need contractors to be able to perform their job as best as they can with the least amount of stress possible. This is all possible because of wrap-up Insurance, the best thing since sliced bread.