# OCIP vs CCIP: Which Wrap-Up Program Is Right for Your Project?
Wrap-up insurance programs — where a single insurance policy covers an entire construction project and all of its participants — have become standard practice on large construction projects. But wrap-ups come in two flavors: Owner-Controlled (OCIP) and Contractor-Controlled (CCIP). Understanding the difference is essential before deciding which program is right for your project.
What Is a Wrap-Up Insurance Program?
A wrap-up (also called a consolidated or single-project insurance program) replaces the patchwork of individual insurance policies that each contractor and subcontractor would normally carry for a project. Instead of a GC, 30 subcontractors, and 15 sub-subcontractors each carrying their own GL and workers' comp, a wrap-up program covers everyone under one umbrella.
The result: consistent coverage for every project participant, elimination of coverage gaps between contractors, and typically significant cost savings versus the sum of individual contractor policies.
OCIP: Owner-Controlled Insurance Program
In an OCIP, the project owner (developer, public agency, corporation) purchases and administers the wrap-up program. The owner becomes the named insured, and all contractors and subcontractors are enrolled as additional insureds.
How OCIP works:
The owner contracts with an insurance broker to design the program, then bids the insurance as a separate line item in the project budget. Contractors who bid on the project are required to "carve out" the OCIP-covered exposures from their bids — meaning they don't need to include the cost of GL and workers' comp in their prices for enrolled project work.
The owner enrolls each contractor and subcontractor as they're brought onto the project. Workers' comp payrolls are tracked, GL exposures are monitored, and the owner (or a third-party OCIP administrator) manages the program administration.
Who benefits from OCIP:
- **Project owners** who want to control project risk at the top level
- **Public agencies** that require consistent coverage for liability and accountability
- **Real estate developers** on large projects ($20M+) where economies of scale make OCIP cost-effective
CCIP: Contractor-Controlled Insurance Program
In a CCIP, the general contractor (not the owner) purchases and controls the wrap-up program. The GC becomes the named insured, and subcontractors are enrolled.
How CCIP works:
The GC decides to purchase a CCIP rather than requiring individual certificates from subcontractors. The GC's broker designs the program, and subs are enrolled as they're hired. Subcontractors carve out their CCIP-covered exposures from their sub-bids.
Who benefits from CCIP:
- **General contractors** who want to control coverage and claims for their project team
- **GCs on design-build projects** who have both construction and professional liability exposure
- **GCs who struggle to obtain certificates** from subcontractors or who find sub coverage inadequate
Cost Savings Analysis
Both OCIP and CCIP typically produce cost savings of 1–3% of total project value versus the aggregate cost of individual contractor insurance. On a $50M project, that's $500,000–$1.5M in savings.
The savings come from:
1. Economies of scale: One large policy costs less per dollar of coverage than many small policies
2. Elimination of duplicative coverage: No need for multiple policies covering the same project perils
3. Better claims control: Consolidated program means fewer coverage disputes between contractors' insurers
4. Dedicated project underwriting: Underwriters evaluate the project holistically, not each contractor's individual risk profile
OCIP vs CCIP: Key Differences
| Factor | OCIP | CCIP |
|--------|------|------|
| Who purchases | Project owner | General contractor |
| Who administers | Owner or third-party administrator | GC or their broker |
| Control over claims | Owner | GC |
| Coverage period | Usually full project plus 10-year completed ops | Usually full project plus 3-5 year completed ops |
| Scope | All contractors including GC | GC and all subcontractors |
| Best for | Large projects, public works, developers | GC-controlled projects, design-build |
When to Use OCIP
- **Public projects**: Government agencies increasingly mandate OCIP for large public works contracts
- **Large commercial developments**: Projects $20M+ where cost savings justify administrative overhead
- **High-subcontractor-count projects**: OCIPs eliminate the burden of collecting and monitoring sub certificates
- **Projects with complex risk**: Where owner wants full control over project liability
When to Use CCIP
- **GC-controlled projects**: Where the GC, not the owner, has primary control over construction risk
- **Design-build projects**: GC can wrap professional liability into the CCIP alongside GL/WC
- **Projects with high-risk subcontractors**: GC can better control sub risk through enrollment
- **Projects where owner declines to purchase OCIP**: Owner won't buy but GC wants wrap-up benefits
Administration Requirements
Both program types require:
- **Enrollment**: Each contractor/subcontractor completes enrollment application before beginning work
- **Payroll tracking**: Workers' comp requires accurate payroll data by employee classification
- **Certificate management**: OCIP/CCIP certificates issued in lieu of contractor-specific certificates
- **Claims reporting**: All project incidents reported to program insurer (not individual carrier)
- **Audit**: At project completion, final payroll audit determines actual workers' comp premium
The administrative burden is real. OCIP/CCIP programs require dedicated administration — either in-house or through a third-party OCIP administrator. Under-administered programs create enrollment gaps and claims disputes.
How to Get Started
The earlier you begin the OCIP or CCIP process, the better. Most programs require 60–90 days of lead time before groundbreaking to:
1. Design the coverage program (GL limits, WC rates, builder's risk structure)
2. Select and bind the carrier(s)
3. Communicate enrollment requirements to project team
4. Establish reporting and certificate issuance procedures
If you're planning a project and considering a wrap-up program, contact us 90–120 days before construction begins.
---
Project-Specific Contractor Insurance is a division of Contractors Choice Agency specializing in OCIP and CCIP design and placement. [Contact our wrap-up specialists today.](/contact)