What Is an OCIP and When Does a Wrap-Up Make Sense?

A controlled insurance program (CIP), often called a wrap-up, brings certain project participants under coordinated insurance purchased by a sponsor. An owner-sponsored program is an OCIP; a contractor-sponsored program is a CCIP. The coverage included and the parties eligible to enroll differ by program. The U.S. GAO review explains that wrap-ups can offer savings and coordinated safety while shifting management costs and risk to the sponsor.

What is usually coordinated?

A wrap-up may include general liability, workers' compensation, and excess liability for enrolled parties. Builder's risk, auto, professional liability, pollution, off-site work, or suppliers may be handled separately. Read the enrollment manual and policy forms rather than assuming a standard package.

Why consider one?

Coordinated terms can make project coverage and claims administration more consistent. Buying coverage for a whole project can also change cost, but any financial case must account for insurance credits removed from bids, administration, deductibles, and collateral. There is no savings percentage or project-size threshold that applies to every project.

Where do projects get caught?

• Enrollment: Determine who is eligible, when coverage begins, and how confirmation is issued before mobilization.
• Excluded work: Check what each party must insure outside the wrap-up and whether its own policies contain wrap-up exclusions.
• Claims: Establish reporting, access to claim data, and authority to settle.
• Completed operations: Compare the tail of coverage, exclusions, limits, and applicable legal time periods.
• Financial obligations: Model retained losses, collateral, and administration after physical construction ends.

Due diligence before committing

Request a side-by-side comparison with conventional insurance and ask the broker, counsel, finance team, and administrator to agree on the assumptions. Confirm the actual policies, bid-credit method, enrollment workflow, safety responsibilities, and run-off plan. A program's value rests on those details more than its label.

If a wrap-up is under consideration, review the project economics and coverage terms.