CCIP vs. OCIP: Choosing the Right Wrap-Up Structure for Your Project.
Compare owner- and contractor-controlled wrap-ups through governance, enrollment, claims, collateral, and completed operations.
A controlled insurance program, or wrap-up, can place enrolled project participants under coordinated insurance coverage. The sponsor may be the owner (OCIP) or the general contractor (CCIP). Neither structure is inherently cheaper or safer: the result depends on project terms, exclusions, credits, administration, and claims performance. The U.S. GAO's review of wrap-ups describes both potential savings and the added risks and management costs borne by the sponsor.
What changes with the sponsor?
| Decision | OCIP | CCIP |
|---|---|---|
| Program sponsor | Project owner | General contractor |
| Main operational benefit | Owner retains program continuity if contractors change | Contractor can coordinate enrollment with procurement and site management |
| Key obligation | Owner funds and oversees the program | Contractor funds and oversees the program |
The actual policies and contracts determine named insured status, control of claims, deductibles, collateral, and access to records. Do not assume those details from the label alone.
Compare the full economics
Request two project models: conventional insurance and a proposed wrap-up. Include premiums, broker and administrator fees, insurance credits removed from subcontract bids, retained losses, collateral cost, and the staffing needed through project closeout. Test a poor-loss scenario as well as an expected scenario. There is no reliable universal project-size cutoff or savings percentage.
Check enrollment before mobilization
The enrollment manual should say which trades and activities are included, what happens to excluded contractors, how coverage is confirmed, and who monitors changes in subcontractors. Obtain the actual policy terms and the contractor's own policy endorsements. A certificate alone does not establish the scope of coverage.
Plan for claims after completion
Compare completed-operations terms, limits, exclusions, and any state-specific limitation or repose period. A later construction-defect allegation does not automatically trigger coverage; the facts, policy wording, and applicable law matter. The sponsor should also understand how long deductible, collateral, and records obligations may continue.
Questions for the decision meeting
- Who can manage enrollment, safety coordination, and claim reporting throughout the project?
- Which party needs continuity if the general contractor changes?
- How will insurance credits and change orders be calculated and audited?
- How will enrolled subcontractors see claims affecting their experience data?
- What happens if the program ends before every exposure has run off?
For a project-specific comparison, discuss the proposed coverage and financial model.