wrap-around risk financing program

A wrap-around risk financing program has two or more different risk financing approaches that are combined into one overall program.

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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.