If I wrap pipes with fiberglass for insulation but I'm worried about the health risks of exposed fiberglass, is there something that I could wrap around the fiberglass? If so, what and why?
Yes, and much easier. Specially made foam insulation for pipes is readily available in many diameters and literally just snaps over the pipes via a slit in the tube. Then there is plastic covering glue that you pull off once you have the insulation over the pipe. Pull the plastic, squeeze it together and wa la you have an insulated pipe. I posted an image for 1/2" pipe, but it's available in many sizes.