Large construction projects involve numerous contractors, subcontractors, vendors, and stakeholders. Managing insurance requirements across multiple parties can be challenging, especially when projects involve significant budgets and complex risks.
That's where Wrap-Up Insurance Programs, commonly known as CCIPs and OCIPs, can play an important role.
At J&A Insurance Agency Inc., we help developers, project owners, investors, and general contractors throughout Georgia evaluate Contractor Controlled Insurance Programs (CCIPs) and Owner Controlled Insurance Programs (OCIPs) as part of their overall construction risk management strategy.
A Wrap-Up Insurance Program provides centralized insurance coverage for eligible contractors and subcontractors working on a specific construction project.
Rather than each contractor relying solely on their own insurance policies, a wrap-up program can provide project-specific coverage under a single coordinated insurance structure.
Wrap-up programs are often considered for larger projects where enhanced risk management, claims handling, and insurance coordination are priorities.
A Contractor Controlled Insurance Program (CCIP) is a wrap-up insurance program sponsored and administered by the project's general contractor.
Under a CCIP, the general contractor typically purchases and manages the insurance program for eligible contractors and subcontractors participating in the project.
CCIPs are commonly utilized by large general contractors managing complex projects with multiple subcontractors.
An Owner Controlled Insurance Program (OCIP) is sponsored and administered by the project owner, developer, investor, or public entity.
With an OCIP, the owner purchases the insurance program and provides coverage for eligible contractors and subcontractors involved in the project.
OCIPs are frequently used on large commercial developments, institutional projects, mixed-use developments, and public construction projects.
The primary difference is who sponsors and controls the insurance program.
| CCIP | OCIP |
|---|---|
| Controlled by General Contractor | Controlled by Owner/Developer |
| Insurance purchased by GC | Insurance purchased by Owner |
| GC manages administration | Owner manages administration |
| Often used by large contractors | Often used by developers and property owners |
| Focused on contractor-led projects | Focused on owner-led projects |
Both approaches can provide centralized coverage and enhanced risk management when properly structured.
While every project is unique, wrap-up programs are often considered for:
Project size, duration, contractor participation, and overall risk profile are all factors when determining whether a wrap-up program is appropriate.
Developers and commercial real estate investors often have substantial capital invested in a project. A well-structured OCIP or CCIP can help provide greater oversight of project-related insurance and risk management activities.
Benefits may include:
For many investors and developers, effective risk management is just as important as construction budgeting and scheduling.
Wrap-up programs can be highly effective, but they require careful planning and administration. Coverage structures, enrollment requirements, safety programs, claims procedures, and contractual obligations should all be reviewed before implementation.
At J&A Insurance Agency Inc., we help Georgia developers, project owners, investors, and general contractors evaluate construction insurance strategies, including CCIPs, OCIPs, Builders Risk, General Liability, Excess Liability, Workers' Compensation, and other project-specific insurance solutions.
If you're planning a large construction project in Georgia, now is the time to evaluate whether a CCIP or OCIP may be appropriate for your risk management strategy.
📞 (678) 266-3353
📧 BizIns@jainsuranceagency.com
J&A Insurance Agency Inc.
Serving Kennesaw, Atlanta, Metro Atlanta, and construction projects throughout Georgia.