👷 Contractors: Wrap-Up vs. Project-Specific Liability 🏗️🇨🇦
In British Columbia’s fast-paced construction industry, liability insurance isn’t optional—it’s essential. One common question contractors face is whether to arrange coverage through a Wrap-Up Liability Policy or a Project-Specific Liability Policy. Both provide protection, but they operate differently.
⚡ Wrap-Up Liability
- A single policy that covers all parties involved in a project—owners, general contractors, and subcontractors.
- Reduces gaps and overlaps by centralizing liability protection.
- Typically required for large-scale projects such as condominiums, infrastructure builds, or public works.
- Covers third-party injury or property damage during the course of construction.
🛠️ Project-Specific Liability
- Purchased by an individual contractor for their role in a particular project.
- Coverage is limited to that contractor’s operations and does not extend to others on site.
- More common for smaller projects or trades where a full wrap-up policy isn’t practical.
📌 Why It Matters in BC
Construction projects often involve multiple stakeholders. Without a wrap-up policy, disputes between insurers can delay claims. On the other hand, for small renovations or single-trade work, a project-specific policy may provide sufficient coverage.
✅ The Takeaway
- Wrap-Up = Broad, collective protection for major projects
- Project-Specific = Individual coverage for smaller jobs
👉 If you’re bidding on projects in BC, be clear on which coverage is required—and make sure your role is fully insured.
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