Wrap-up insurance — formally known as an Owner-Controlled Insurance Program (OCIP) or a Contractor-Controlled Insurance Program (CCIP) — is a single policy that covers every contractor on a project. Instead of each contractor carrying their own GL, workers' comp, and excess liability policies, the project owner or general contractor purchases one program that wraps everyone into a single policy. This is most common on large construction and land development projects.

For tree service companies, you will encounter wrap-up programs primarily on large commercial land-clearing projects, utility corridor maintenance contracts, and municipal or state highway projects. When you are enrolled in a wrap-up, you are typically required to exclude that project from your own GL and workers' comp policies. Your own policies are still active for all your other jobs — but the wrap-up project is carved out and covered by the wrap-up policy instead.

Being enrolled in a wrap-up has several practical implications. First, your own premium should decrease because the payroll and revenue associated with the wrap-up project are excluded from your policies. Make sure your agent adjusts your estimates accordingly. Second, any claims that occur on the wrap-up project go against the wrap-up policy's loss history, not yours — which protects your own EMR and loss runs.

However, wrap-ups also have drawbacks. The coverage terms of the wrap-up may be different from (and potentially narrower than) your own policy. You may have limited input into the claims handling process since the wrap-up insurer controls it. And the administrative burden — enrollment paperwork, payroll reporting to the wrap-up administrator, and coordination between your own policies and the wrap-up — can be significant. Always have your agent review the wrap-up manual before you enroll to understand your obligations and confirm that the coverage adequately protects your operations on the project.