Off-Site Coverage and WRAP Projects: When Enough Is Enough

Subcontractors working under WRAP policies like OCIPs or CCIPs are already familiar with the process. You enroll in the WRAP, provide a bid credit to account for insurance you’re no longer supplying, and proceed knowing your work under the WRAP is covered.

But that standard is starting to shift.

More and more WRAP administrators now demand coverage far beyond the job site. They require liability protection for off-site work, even when it falls outside the scope of the WRAP project. They also ask subcontractors to name them as additional insureds on their liability policies for work performed away from the project. Sometimes, they insist on specific ISO endorsement forms and completed operations language as part of that coverage.

These requirements are not just burdensome. They are becoming unreasonable.

The Purpose Behind WRAP Policies

WRAPs were originally designed to simplify the insurance process for large construction projects. They consolidate general liability, excess liability, and sometimes workers’ compensation coverage into a single program. When subcontractors are brought under the WRAP, they remove the cost of their own coverage from their bid and rely on the WRAP for protection. Standard liability policies include WRAP exclusions that remove coverage for work already insured by the WRAP. Sometimes, these exclusions apply even when the subcontractor does not enroll (read your policy)!

This system avoids overlapping policies, simplifies claims handling, and gives project owners peace of mind.

The Problem with Expanding WRAP Demands

Recently, WRAP administrators have begun to require subcontractors to extend coverage for work performed away from the WRAP-covered site. They request additional insured endorsements on subcontractors’ own policies for these off-site tasks, even if the administrators have no direct insurable interest in that work.

These demands often include:

• Liability coverage for off-site work tied to the project.
• Additional insured status for the WRAP administrator or project sponsor.
• Specific ISO form editions, some of which are outdated or rarely used.
• Completed operations language included in the endorsement.

These requests go beyond the original intent of WRAP programs and, in many cases, contradict how those programs are supposed to function.

Carrier Concerns Are Justified

Insurers are not ignoring this trend. They are being asked to extend protection (often broadened) to parties without insurable interest in the project, which is a serious concern.

When a WRAP exclusion applies, it is there to keep the risk with the WRAP. Adding back coverage for off-site work related to the project creates confusion about who is responsible. On top of that, when administrators demand older ISO endorsement forms that are no longer in circulation, carriers may not be able to comply.

The Subcontractor’s Dilemma

Subcontractors are forced to comply with these unrealistic insurance requirements to secure jobs. They face demands that are either unavailable or unaffordable. Many absorb extra costs or chase workaround solutions that only partially meet what is being asked.

This situation places subcontractors in a difficult and unfair position.

What Subcontractors Can Do

There are steps subcontractors can take to protect themselves:

• Understand that not every contract requirement is achievable or enforceable in the current insurance market.
• Review contracts early and raise questions when unusual demands are included.
• Work with a broker who knows construction, understands WRAP complexities, and can help document compliance efforts, including insurer declinations.

Having a knowledgeable advocate on your side makes a big difference.

The Bottom Line

WRAP policies were created to centralize coverage and simplify risk management. When administrators begin demanding coverage far beyond the project site, it creates unnecessary complications and costs. Subcontractors deserve a clear path forward with insurance requirements that reflect reality and respect the structure of WRAP programs.

If you are being asked to provide off-site coverage that does not make sense, you are not alone. There is a smarter way to navigate this, and it starts with understanding your rights and the realities of the insurance market.

Contact our agency today to connect with an experienced team member who understands these complexities and can help.