OCIP VS CCIP: Owner-Controlled Insurance Program (WRAP)

OCIP & CCIP (WRAP) Overview

Owner-controlled insurance programs (OCIPs) and contractor-controlled insurance programs (CCIPs), also called wrap-up (WRAP) insurance policies, are all-encompassing policies intended to protect owners, developers, contractors, and subcontractors who contribute to a large project.

What OCIP and CCIP Programs Cover

A project owner purchases an OCIP policy, and a primary contractor purchases a CCIP. Both may provide 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 on a project 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. Still, it is essential to discuss your insurance needs with a professional.

An OCIP or CCIP can be site-specific, depending on the project’s location or location. Coverage is usually purchased per project, and the policy term depends on the project’s length.

Liability limits for your WRAP 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 OCIP & CCIP 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 policies since they are already covered under the OCIP or CCIP. This lowers the cost of contractor bids 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, mainly because each program is uniquely tailored to each project. An insurance professional at FOA can help you find the right program for your business.

Click here to request assistance with a WRAP policy today!