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Writer's pictureCooke Insurance

What You Need to Know About Wrap-Up Liability Insurance

Updated: Apr 20, 2023

One important life lesson we learned at the beginning of the pandemic is that we can never predict the future. It was a harsh reality for many people, as the pandemic caught us off guard and forced us to change our plans on the fly.

While it is necessary to predict the future with 100% accuracy, we can take steps to be better prepared for whatever comes our way. We can learn from our errors and ensure a backup plan if our first plan does not work out.

One excellent way to plan your future is to invest in insurance. This investment can protect you and your family from financial risks, including death, disability, and illness.

There are many types of coverage, so choosing the right kind for your needs is essential. A wrap-up liability policy is insurance coverage that protects businesses and individuals from third-party claims arising from construction projects. It is also known as builders' risk coverage or course of construction insurance.


What Is Wrap-Up Liability Coverage?


Wrap-up liability coverage protects a company or organization if one of its projects results in bodily injury or property damage. Wrap-up liability coverage can be purchased as a standalone policy or as an endorsement of a company's existing liability policy.

The main advantage of wrap-up liability coverage is that it can protect a company or organization if one of its projects results in bodily injury or property damage. Another advantage of wrap-up liability coverage is that it can help manage and control project costs. Unfortunately, it can be expensive. When deciding whether or not to purchase wrap-up liability coverage, a company or organization should consider the potential risks and benefits associated with the policy.


Basic Facts


Wrap-up liability coverage can be an essential tool for mitigating risk on a construction project. It can protect against many potential claims, including accidents, defects in quality, and even third-party claims. In many cases, this type of coverage can be purchased lower than if the organization were to buy separate insurance policies for each potential risk.

There are a few key things to keep in mind when considering wrap-up liability coverage:

  1. It is essential to ensure that the coverage is adequate for the specific risks of the project.

  2. The organization should be appropriately named as an insured on the policy.

  3. Understanding the exclusions and limitations that may apply to the coverage is essential.


Conclusion


Wrap-up liability insurance is a type of insurance that can protect businesses in Canada from various risks. It is necessary to know the coverage options and limits available under a wrap-up policy to ensure that your business is adequately protected.

Before you start your construction project, you should contact a reputable insurance company in Saskatoon, and there is no one better than Cooke Insurance. We provide financial protection against construction risks. So, contact us now for a quote!


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