Wrap-up Exclusion Applies Even if Insured Not Enrolled in Wrap-Up Program

    The Supreme Court of New York, Appellate Division, found that the lower court properly determined that the wrap-exclusion applied to the insured even though it was not enrolled in the Wrap-up Insurance Program for the project. Skanska USA Building Inc. v. Harleysville Ins. Co., 2023 N.Y. App. Div. LEXIS 1893 (N.Y. App. Div. April 11, 2023).

    The CGL policy was issued to Fred Geller Electrical, Inc., the named insured on the policy. The policy’s exclusion provided that coverage did not apply “to ‘bodily injury’ . . . arising out of . . . your ongoing operations . . . when a consolidated (wrap-up) insurance program has been provided by the prime contractor/project manager or owner of the construciton project in which you are involved.” Becasue the underlying accident arose out of Geller’s ongoing operations and a wrap-up insurance program had been provided for the construction project, the wrap-up exclusion was triggered, precluding coverage. Geller need not have actually enrolled in the wrap-up program in order for the exclusion to apply.