What are OCIPs and CCIPs?

An OCIP is an Owner Controlled Insurance Program and a CCIP is a Contractor Controlled Insurance Program. They can both be called Wrap up Programs.

An OCIP (Owner Controlled Insurance Program) is an insurance plan that a project owner—like a large developer or government agency—purchases to cover all of the general contractor and subcontractors on a construction project. Often referred to as a “wrap‑up” policy, here's how it works and why it's used:

Key Features of OCIP

  1. Owner-Purchased Coverage
    The project owner (or project manager) buys a single, comprehensive insurance package that covers liability and worker’s compensation for everyone working on the job site—general contractor, subcontractors, and their employees.

  2. Consistency & Control
    The owner has control over policy terms, coverage limits, insurance carriers, and loss prevention programs. This ensures uniform standards across all trades.

  3. Cost Savings Potential
    By bundling coverage, the owner may achieve bulk discounts, reduce overlapping policies, and simplify risk transfer. This can lower overall insurance costs, especially on big projects.

  4. Simplified Administration
    Contractors don’t need to individually submit for and maintain their own project-specific insurance—though they often still have general liability and auto coverage separately.

  5. Risk Consolidation

  6. Claims reporting, claims management, and loss prevention become centralized. This can improve overall risk awareness and safety oversight.

    Coverage typically included

    • Commercial General Liability (CGL)

    • Workers’ Compensation & Employer’s Liability

    • Excess/Umbrella Liability (sometimes)

    • Course-of-Construction/Builders Risk Insurance (optional in some OCIPs)

       Advantages & Challenges

      ProsCons
      Better control over coverage termsRequires strong owner coordination
      Potential cost savingsAdministrative burden centralizes on owner
      Consistency in safety standardsSome subcontractors may feel over-insured or under-insured

      OCIP vs. CCIP

      • OCIP (Owner-Controlled): Owner buys and controls insurance.

      • CCIP (Contractor-Controlled Insurance Program): Contractor (usually GC) buys the insurance for the project team.

      Who uses OCIP?

      • Project owners with large projects involving many contractors—like airports, stadiums, infrastructure jobs.

      • Owners wanting centralized risk control, consistent safety standards, and potential cost efficiencies.

      Overall

      An OCIP is essentially a construction insurance system where the project owner, rather than each contractor, provides key insurance coverage for the entire workforce on a project. It offers control and possible savings, but requires strong coordination and administrative capacity.




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