Industry Deep-Dive · 14 min read

OCIP and CCIP Wrap-Up Insurance: A Construction Guide

A wrap-up is a centralized insurance program covering designated project participants for specified risks. An owner-controlled insurance program (OCIP) is sponsored by the project owner; a contractor-controlled insurance program (CCIP) is sponsored by the general contractor. Neither automatically covers every firm, operation, or loss, so the program manual, policies, enrollment records, bid credits, and contractors' remaining corporate coverage must be coordinated.

About the author

Reza Azar · Senior Insurance Broker · OnePark Risk

OCIP versus CCIP

OCIP: the owner procures and controls the designated project program.
CCIP: the general contractor procures and controls the designated project program. IRMI describes a CCIP as a wrap-up sponsored by the construction manager at risk, general contractor, or prime contractor that holds the trade subcontracts, with the sponsor administering enrollment, payroll reporting, claims, and safety and carrying the large deductible (IRMI, Have You Thought about a Contractor Controlled Insurance Program?, 2005).
Both may centralize GL and workers' compensation; exact included lines vary.
Sponsor control affects administration, loss information, collateral, and closeout—not whether a loss is covered.
Contractors still need corporate policies for non-wrap work and excluded exposures.

What a wrap-up may include

Typical programs may include project-specific general liability, completed operations, workers' compensation, and excess liability. IRMI describes a CCIP completed-operations extension that typically runs about three years beyond construction, with the sponsor carrying the deductible through that period (IRMI, Have You Thought about a Contractor Controlled Insurance Program?, 2005). Some add pollution or other lines; many do not. Builder's risk, professional liability, auto, tools and equipment, cyber, and off-site operations often remain outside unless expressly scheduled. The actual policies override summaries and manuals.

Enrollment and tier management

Identify eligible and excluded contractors before bids are finalized. A program's insurance manual or contractual addendum defines Enrolled Parties and Excluded Parties, and programs typically exclude hazardous-material remediation contractors, design professionals, material suppliers and manufacturers, equipment rental companies, truckers and haulers, parties that perform no labor at the site, and subcontractors below a contract-value threshold (IRMI, "Excluded Parties" in Wrap-Up Insurance Programs, 2020).
Enroll every required tier before mobilization and maintain payroll or exposure reports; enrollment requires completed paperwork and written confirmation from the administrator before coverage is in effect (IRMI, "Excluded Parties" in Wrap-Up Insurance Programs, 2020).
Issue evidence of wrap coverage and communicate what corporate insurance remains required.
Track lower-tier additions, off-site work, warranty work, and project transfers.
Reconcile final exposures and preserve completed-operations evidence at closeout.

Bid deductions and insurance cost

Because enrolled contractors should not charge the project for insurance supplied by the wrap, bid documents commonly request an insurance deduction or credit; in a CCIP the sponsor negotiates those insurance deducts from the trade bids (IRMI, Have You Thought about a Contractor Controlled Insurance Program?, 2005). The methodology must distinguish wrap-covered exposures from retained costs, deductibles, corporate overhead, auto, equipment, and excluded operations. There is no universal savings result; project size, losses, administration, collateral, and program design determine economics.

Common exclusions and gaps

Excluded contractors, trades, or firms below an enrollment threshold
Off-site fabrication, transportation, and work outside the project boundary
Auto liability and contractors' equipment
Professional services and design error
Pollution unless affirmatively added
Warranty or punch-list work after enrollment ends
Completed-operations terms shorter than contractual obligations—a gap the corporate policy will not fill where CG 21 54 excludes the project's products-completed operations hazard (CG 21 54 01 96)

Corporate and wrap policy coordination

A contractor's corporate GL often contains a wrap-up exclusion for operations enrolled or eligible for enrollment. The ISO form is CG 21 54, Exclusion—Designated Operations Covered by a Consolidated (Wrap-Up) Insurance Program: it removes bodily injury or property damage arising out of the contractor's ongoing operations or operations within the products-completed operations hazard at the scheduled project where a wrap-up has been provided by the prime contractor, project manager, or owner, and it applies whether or not the wrap-up provides identical coverage, has limits adequate to cover all claims, or remains in effect (CG 21 54 01 96). The narrower CG 21 53, Exclusion—Designated Ongoing Operations, can instead remove only the ongoing operations at the wrap project so the corporate policy keeps completed-operations coverage (IRMI, designated operations exclusion endorsement). Conversely, the wrap may exclude work that the corporate policy expects the wrap to cover. Compare both forms, define who handles deductibles and claims, and confirm excess attachment. Other-insurance language and state workers' compensation requirements also require review.

Underwriting and feasibility inputs

Construction value, schedule, location, delivery method, and project description
Estimated payroll and subcontract cost by trade and tier
Safety program, site controls, and loss history
Participant count and enrollment administration plan
Requested limits, completed-operations period, retentions, and collateral capacity
State-specific workers' compensation, licensing, and program requirements

Governance, safety, and closeout

Centralized insurance does not transfer each employer's safety obligations to the sponsor. OSHA construction standards and resources remain the federal starting point (https://www.osha.gov/construction), and BLS occupational injury data can inform loss analysis (https://www.bls.gov/iif/). Closeout should reconcile exposures, resolve enrollment exceptions, distribute final evidence, retain policy documents, and establish a completed-operations claim channel.

What is the main difference between an OCIP and CCIP?

The sponsor: an owner sponsors an OCIP, while a general contractor sponsors a CCIP. Scope and coverage must still be read from each program's policies.

Does enrollment eliminate the need for corporate insurance?

No. Contractors generally retain insurance for non-wrap projects, excluded operations, auto, equipment, and other lines not included in the wrap.

Are all subcontractors automatically insured?

No. Eligibility and enrollment conditions apply, and some trades or tiers may be excluded. IRMI notes that enrollment requires completed paperwork and written confirmation from the administrator before coverage is in effect, so written confirmation is essential before work begins.

Who pays a wrap-up deductible?

The policies and contracts allocate deductibles or loss charges. Participants should understand the allocation before bidding; it is not uniform across programs.

Does a wrap-up cover completed operations forever?

No. Coverage has defined policy periods, limits, aggregates, and terms; IRMI describes a typical CCIP completed-operations extension of about three years beyond construction. Compare the completed-operations period with contract requirements and applicable state law, and remember that CG 21 54 on the corporate policy excludes the project's completed operations whether or not the wrap-up remains in effect.

Is a wrap-up always less expensive?

No. It can centralize controls, but economics depend on project exposures, losses, administration, collateral, and policy structure.

Frequently asked questions