Owner-Controlled Insurance Program (OCIP/WRAP) Overview
Owner controlled insurance programs (OCIPs) and contractor controlled insurance programs (CCIPs), also called wrap-up insurance policies, are all encompassing or umbrella liability policies that are intended to protect contractors and subcontractors who contribute to a large project.
What Owner-Controlled Insurance Programs Cover
An OCIP policy is purchased by a project owner, and a CCIP is purchased by a primary contractor. Both provide general policies such as workers compensation, commercial general liability, excess liability, professional liability, builders risk insurance, pollution liability, and railroad protective liability for all contractors and subcontractors that on a project that the insured chooses to include. Your OCIP or CCIP policy and the insurance policies included in it can be tailored to the needs of your project, but it is important to discuss your insurance needs with a professional.
An OCIP or CCIP can be site specific, depending on the location or locations of the project. Coverage is usually purchased per project, and the term of the policy depends on the length of the project.
Liability limits for your wrap-up insurance policy will depend on the specifics of the project, including the type of construction, the size of the project, the length of time the construction will take, the extent of the construction or demolition, the number of locations or projects that will be covered under the policy, and the number of contractors who will be insured.
Considerations for Owner-Controlled Insurance Programs
One main benefit of an OCIP or a CCIP is that by bundling so many policies together, the cost for each policy is lower than it would be to purchase individual policies for each entity working on a project.
A CCIP or an OCIP also allows small contractors and subcontractors to save on their own policies, since they are already covered under the OCIP or CCIP. This lowers the cost of contractor bids in a project, since insurance is not a factor in the price.
How to Get Started
Obtaining an owner or contractor controlled insurance program for a construction project can be time consuming, especially because each program is uniquely tailored to each project. An insurance professional at Fusco & Orsini can help guide you through the process of finding the right program for your business.