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Wrap Around Risk Financing Program

Wrap-Around Risk Financing Program


Wrap-Around Risk Financing Program — a risk financing program in which two or more different risk financing approaches are combined into one overall program. Typically, a wrap-around is used for workers compensation insurance so that the most cost-effective program in each state can be used to an insured's advantage. For instance, in state A, an insured may have an exposure large enough to qualify as a self-insurer, whereas the requirements in State B may be such that another type of risk financing program is preferable.

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