This is a type of insurance program (also known as “wrap-around) where a general contractor for a large construction project purchases blanket liability and workers compensation policies for all of the contractors and subcontractors working on behalf of the general contractor. In some insurance markets, small contractors may have trouble obtaining adequate liability and workers compensation coverage. Should a loss occur the general contractor or developer is held liable for the uninsured portion of the subcontractor’s negligence or injury to the subcontractor’s employees. Therefore, the general contractor purchases wrap-around coverage that covers all contractors on the job. The general contractor holds the subcontractor’s proportionate share of the insurance premium out of the subcontractor’s payments.