Wrap Up Reconciliation
Stephenson + Brook’s Wrap Up Reconciliation Service involves the auditing of all pertinent wrap up payroll that should have been included within the appropriate time frame(s) of the relevant Experience Modification Rating (EMR). We confirm that all claims reported are consistent with the policy periods of the wrap up projects. If there is additional payroll to be included, or incurred claim amounts to be adjusted, we will calculate the impact of these changes to the EMR, and discuss with the client in order to determine the best way to proceed.
Wrap Up Workers’ Compensation Insurance Policies for Construction Projects, explained:
It is standard practice on large construction projects for the main general contractor to take out a workers’ compensation insurance policy to cover all workers on a specific construction project job site. This policy is called a wrap up policy. The wrap up policy will have an expiration date that coincides with the projected completion date of the construction project.
All legal entity subcontractors are listed as separate policyholders on the wrap up policy. The general contractor and the majority of the subcontractors will each also have their own separate workers’ compensation insurance policy. These separate policies cover these employers for workers that are performing tasks not related to the specific construction project job site. In fact, insurers routinely require proof of the separate workers’ compensations policies for general contractors and their subcontractors before adding them on to a wrap up policy.
As a result, many contractors will have two or more separate active insurance policies. A “wrap up” indicator identifies the wrap up policies.