Large construction projects come with complex insurance requirements — and few topics in the construction industry cause more confusion than Contractor Controlled Insurance Programs (CCIPs) and Owner Controlled Insurance Programs (OCIPs), commonly known as wrap-up insurance programs.
Whether you're a project owner setting up a wrap-up program, a general contractor managing one, or a subcontractor enrolling in one, understanding exactly how these programs work — and where the gaps are — can mean the difference between being fully protected and facing a devastating out-of-pocket loss.
At J&A Insurance Agency Inc. in Kennesaw, GA, we help contractors, subcontractors, and project owners throughout Metro Atlanta navigate CCIP and OCIP programs with confidence. Here's what you need to know.
A wrap-up insurance program is a consolidated insurance policy that covers multiple parties — typically the project owner, general contractor, and all subcontractors — under one master policy for a single construction project.
The goal is to streamline insurance management, reduce coverage disputes between parties, and in many cases, achieve cost savings through consolidated purchasing power. Wrap-up programs are most commonly used on large commercial construction projects with a contract value of $10 million or more, though they are increasingly being used on mid-sized projects as well.
There are two primary types of wrap-up programs:
In an OCIP, the project owner purchases and manages the master insurance policy that covers all contractors and subcontractors working on the project. The owner controls the program, selects the coverage, and is responsible for enrolling all parties.
Advantages of an OCIP:
Potential drawbacks:
In a CCIP, the general contractor purchases and manages the wrap-up policy covering all subcontractors on the project. The general contractor acts as the program administrator and is responsible for enrollment and compliance.
Advantages of a CCIP:
Potential drawbacks:
While every wrap-up program is different, most CCIP and OCIP policies include some combination of the following coverages:
This is where many contractors and subcontractors get into trouble. Wrap-up programs frequently exclude coverages that participants assume are included. Common exclusions include:
Completed Operations Coverage Many wrap-up policies provide completed operations coverage only for a limited period after project completion — or not at all. This leaves contractors and subcontractors exposed to claims that arise after the project is finished, which can occur years later in construction defect cases.
Off-Site Operations Most wrap-up policies only cover work performed on the designated project site. If your employees are working off-site — fabricating materials, making deliveries, or performing related work elsewhere — those operations may not be covered under the wrap-up policy.
Tools, Equipment & Vehicles Commercial vehicles, tools, and equipment are typically excluded from wrap-up policies. Contractors and subcontractors are generally responsible for insuring their own vehicles and equipment separately.
Subcontractor's Own Ongoing Operations Subcontractors may still be required to carry their own general liability coverage for operations outside of the enrolled project, and some wrap-up programs require subcontractors to maintain certain coverages even while enrolled.
Professional Liability Unless specifically included, errors and omissions or professional liability coverage is typically excluded from standard wrap-up programs.
Even well-structured wrap-up programs carry risks that participants need to be aware of:
Enrollment Errors Failing to properly enroll in a CCIP or OCIP can result in a subcontractor being completely uninsured on a project without realizing it. Enrollment documentation must be completed accurately and submitted on time.
Bid Credit Miscalculations When enrolling in a wrap-up program, subcontractors are typically required to submit bids excluding the cost of insurance — known as a bid credit or insurance credit. Miscalculating this amount can cost subcontractors significant money over the life of a project.
Coverage Gaps at Project Closeout As a project wraps up and the policy period ends, coverage gaps can emerge — particularly around completed operations and warranty periods. Without proper planning, contractors and subcontractors can find themselves uninsured for claims that arise after project completion.
Audit Exposures Wrap-up programs typically include premium audits at project completion. Contractors and subcontractors who don't maintain accurate payroll and exposure records can face unexpected additional premiums at audit time.
Navigating a CCIP or OCIP enrollment — or setting one up — requires expertise, attention to detail, and a thorough understanding of construction insurance. At J&A Insurance Agency Inc., we provide hands-on guidance to contractors, subcontractors, and project owners throughout Metro Atlanta at every stage of the process.
Here's how we can help:
If any of the following apply to you, it's time to give us a call:
✅ You've been handed CCIP or OCIP enrollment documents and aren't sure what they mean ✅ You're a project owner considering setting up a wrap-up program for an upcoming project ✅ You're a general contractor managing a wrap-up program for the first time ✅ You're a subcontractor who has enrolled in wrap-up programs before but wants to make sure you're not leaving gaps ✅ You've had a claim denied under a wrap-up program and want to avoid it happening again ✅ You're bidding on a large commercial project and need help calculating your insurance credit
What size projects typically use wrap-up insurance programs? Wrap-up programs are most common on projects with a contract value of $10 million or more, but they are increasingly being used on projects as small as $5 million. Some owners and general contractors use them on even smaller projects when the risk profile warrants it.
Do subcontractors still need their own insurance if they're enrolled in a wrap-up? Yes — in most cases. Wrap-up policies cover on-site operations for the enrolled project, but subcontractors typically still need their own policies for off-site operations, vehicles, tools, equipment, and any work performed outside of the enrolled project.
What is a bid credit and how is it calculated? A bid credit is the amount a subcontractor deducts from their bid to reflect the insurance costs they won't need to incur because they're covered under the wrap-up policy. Calculating it accurately is important — undercalculating costs you money, and overcalculating can make your bid uncompetitive.
How long does completed operations coverage last under a wrap-up policy? This varies significantly by program. Some wrap-up policies provide completed operations coverage for 10 years after project completion, while others provide coverage for as little as one year or none at all. This is one of the most important details to review before enrolling.
Can J&A Insurance Agency Inc. help us set up an OCIP for our project? Absolutely. We work with project owners and developers throughout Metro Atlanta to structure wrap-up programs that provide comprehensive coverage, meet lender and regulatory requirements, and achieve meaningful cost savings.
Don't navigate the complexities of wrap-up insurance alone. Whether you're enrolling in a program, setting one up, or just trying to understand what you've been handed, J&A Insurance Agency Inc. is here to help.
📞 Call us at (678) 266-3353 📧 Email us at BizIns@jainsuranceagency.com 📍 J&A Insurance Agency Inc. | Kennesaw, GA | Serving all of Metro Atlanta
Contact us today for a FREE consultation — no obligation, no jargon, just straight answers from a local agency that knows construction insurance inside and out.
J&A Insurance Agency Inc. proudly serves contractors, subcontractors, and project owners in Kennesaw, Marietta, Acworth, Woodstock, Smyrna, Canton, Atlanta, and throughout Metro Atlanta. Contact us today for your free CCIP/OCIP consultation.