What does "wrap-up insurance" provide in contract management?

Wrap-up insurance is designed to offer comprehensive liability coverage for all parties involved in a construction project, including the property owner, general contractor, and subcontractors. This type of insurance consolidates various liability policies that would typically be held individually by each contractor or subcontractor into a single policy.

Having a wrap-up insurance policy can help streamline claims processes and provide blanket coverage, reducing gaps in protection that may arise from the different policies held by various entities. This coverage is particularly useful in large projects where multiple contractors are involved, as it simplifies the management of liability risks and ensures that all parties are adequately protected under the same policy terms and conditions.

Thus, the correct answer reflects the comprehensive nature of wrap-up insurance, emphasizing its role in protecting all parties rather than just individuals or single contractors.