On large construction projects, insurance isn’t just a line item—it’s a make-or-break factor for cost control, compliance, and risk transfer. When every subcontractor carries separate coverage, owners and general contractors face a web of certificates, expiration dates, and potential gaps that can leave projects dangerously exposed.
That’s where Controlled Insurance Programs (CIPs), also known as wrap-up insurance, come in. By consolidating coverage under one master policy, CIPs simplify administration and reduce costs.
The key decision is choosing between an Owner Controlled Insurance Program (OCIP) and a Contractor Controlled Insurance Program (CCIP)—a choice that determines who controls coverage, who pays premiums, and who manages compliance.
But here’s the reality: Even with a wrap-up in place, excluded coverages and non-enrolled vendors create a “dual mandate” for compliance that manual tracking simply can’t handle. That’s why leading construction firms rely on certificate of insurance tracking software to eliminate coverage gaps and ensure wrap-up compliance from Day One.
Key Takeaways: What You’ll Learn About OCIP vs. CCIP
Before we dive into the details, here are the core insights this guide will unpack:
- Control and responsibility differ: Owners purchase and manage OCIPs, while general contractors sponsor CCIPs and fold costs into bids.
- Wrap-ups don’t cover everything: Auto liability, professional liability, pollution, and off-site work remain excluded and require separate tracking.
- Project size matters: CIPs typically make sense above $25M–$50M, though high-risk projects may justify them at lower thresholds.
- Compliance is still complex: Even with wrap-ups, you must track excluded coverages for enrolled contractors and maintain full compliance for non-enrolled vendors.
- Cost savings hinge on administration: Accurate bid credits and compliance controls determine whether CIPs deliver financial benefit.
- Whether you choose OCIP or CCIP, one fact doesn't change: wrap-ups still require tracking excluded coverages and non-enrolled vendors—complexity that manual processes can't handle.
Ready to see how automated COI tracking can simplify compliance and safeguard your next project? Schedule Your Demo Now.
What Are Controlled Insurance Programs?
A Controlled Insurance Program (CIP) is a single master insurance policy covering the project owner, general contractor, and enrolled subcontractors throughout construction and the completed operations period. Instead of each contractor maintaining separate policies, the CIP consolidates coverage under one program.
CIPs deliver three core benefits:
Control: The sponsor dictates coverage terms, selects carriers, implements safety protocols, and manages claims from one authority point.
Coverage: All enrolled parties get consistent, high-limit policies that eliminate coverage gaps and reduce disputes over which insurance applies.
Cost: Economies of scale reduce premiums compared to individual policies. Eliminating redundant coverage across multiple contractors cuts overall project insurance costs.
However, CIPs don't eliminate administrative work—they transform it. Wrap-ups create new compliance requirements for excluded coverages, non-enrolled vendors, and off-site operations that demand rigorous certificate of insurance tracking software.
OCIP: Owner Controlled Insurance Program
What Does OCIP Mean?
OCIP stands for Owner Controlled Insurance Program. In an OCIP, the project owner or developer sponsors, purchases, and manages the wrap-up insurance. The owner contracts directly with insurance carriers, pays premiums separately from construction contracts, and maintains authority over coverage terms, policy limits, and claims management.
When to Choose OCIP:
- Public works projects: Government entities often mandate owner controlled insurance programs for taxpayer-funded projects
- Multi-contractor developments: Projects with multiple GCs working simultaneously need unified insurance frameworks
- High-litigation environments: Condos, healthcare facilities, and projects with elevated liability benefit from owner-controlled claims management
- Maximum control priority: Owners with risk management teams want direct authority over carrier selection and safety protocols
In an OCIP structure, owners assume financial responsibility for premiums and administrative burden. Most engage third-party administrators (TPAs) for day-to-day enrollment and certificate tracking, though owners retain decision-making authority and pay deductibles when claims occur.
Subcontractors benefit through lower bids—they remove general liability and workers' compensation costs from proposals through insurance bid credits. But they must maintain separate policies for coverages excluded from the wrap-up, creating ongoing certificate of insurance tracking requirements.
CCIP: Contractor Controlled Insurance Program
What Does CCIP Mean?
CCIP stands for Contractor Controlled Insurance Program. A CCIP provides the same consolidated coverage as an OCIP, but the general contractor sponsors, purchases, and manages the program. The GC assumes financial responsibility for premiums and deductibles, typically building these costs into their contract price.
When to Choose CCIP:
- Design-build projects: When one entity holds both design and construction responsibility, CCIPs provide seamless insurance coordination
- Experienced GC with strong safety record: Contractors with proven loss control programs leverage their experience for better insurance rates
- Owner prefers delegation: Private developers without risk management staff transfer insurance complexity to the GC's team
- GC financial incentives: Since GCs pay deductibles when claims occur, poor safety directly impacts their profitability
In a CCIP, the general contractor pays premiums directly and includes costs in project bids. This structure incentivizes rigorous safety standards—the GC's profitability depends on loss prevention. The GC manages subcontractor enrollment, tracks certificates for excluded coverages, processes claims, and reports program performance to the owner.
Like OCIPs, CCIPs require subcontractors to provide bid credits while maintaining separate policies for automobile liability, professional liability, pollution coverage, and other exclusions—the same dual compliance mandate that makes certificate of insurance tracking software essential.
What's the Difference Between OCIP and CCIP?
The fundamental difference between OCIP and CCIP lies in who controls the insurance program and bears financial responsibility. Understanding these distinctions helps project teams select the right structure for their needs.
Project Size: Both structures typically make economic sense on projects $25M-$50M and above. High-risk sectors like condominium development may justify wrap-ups at $10M or more, though thresholds can vary by project and insurer.
State Regulations: Some jurisdictions mandate OCIPs for public projects above specific thresholds. Others restrict certain wrap-up structures. Consult insurance brokers familiar with local requirements.
The Bid Credit Challenge: Success requires strict controls over bid credits. Subcontractors must accurately remove insurance costs from bids since the wrap-up provides coverage. Without verification, you risk paying twice: once for the wrap-up premium and again for phantom insurance costs in inflated bids.
What's Covered in CIPs
Both OCIP and CCIP programs provide comprehensive coverage for core construction liability:
- Commercial General Liability: Third-party bodily injury and property damage, including completed operations (typically $5M-$25M per occurrence)
- Workers' Compensation: All enrolled contractors and subcontractors
- Excess/Umbrella Liability: Additional protection above primary policy limits
- Employer's Liability: Lawsuits from injured workers beyond standard claims
This consolidated approach delivers uniform coverage, eliminates gaps, and provides cost efficiency through economies of scale.
What's NOT Covered: Critical Exclusions
Understanding OCIP exclusions and CCIP exclusions is critical because they create separate certificate of insurance tracking requirements:
Automobile Liability: Vehicles aren't covered because they regularly leave construction sites. Every enrolled contractor needs separate commercial auto insurance.
Professional Liability: Design professionals, engineers, and architects need errors and omissions (E&O) coverage that wrap-ups don't include. Most professional liability insurance, aka errors and omissions (E&O) or medical malpractice insurance, is written on a "claims-made" basis, not an "occurrence" basis.
Pollution Liability: Environmental contamination and hazardous material handling fall outside standard CIP coverage. Contractors working with hazardous materials need separate pollution liability insurance.
Off-Site Coverage: Most wrap-ups provide exclusively on-site coverage. Work at fabrication shops, material storage yards, or other off-site locations requires separate coverage.
Non-Enrolled Vendors: Short-term vendors, specialty contractors below minimum value thresholds, and parties working outside the wrap-up period need complete traditional insurance verification.
This creates the "dual mandate" for wrap-up projects:
For enrolled contractors: Track certificates for all excluded coverages (auto, professional, pollution, off-site) while confirming they're enrolled in the CIP for covered exposures.
For non-enrolled vendors: Manage complete vendor insurance compliance using traditional certificate of insurance tracking.
Manual management of this dual mandate fails on projects with dozens of contractors. Spreadsheets can't differentiate "covered by wrap-up" from "requires separate tracking" for each vendor. Missing one expired auto liability certificate exposes the entire project to uninsured loss.
Why Automated COI Tracking Is Essential
Certificate of insurance tracking software isn't optional for controlled insurance programs—it's essential infrastructure.
What the best certificate of insurance tracking software provides:
- Customizable Compliance Rules: Configure different requirements for each vendor based on enrollment status and scope of work
- Automated Data Extraction: OCR technology scans certificates and extracts policy details without manual data entry
- Proactive Expiration Monitoring: Automated alerts at 60, 30, and 14 days before expiration prevent coverage gaps
- Real-Time Compliance Dashboards: Color-coded indicators provide instant visibility across all vendors
- Audit-Ready Documentation: Comprehensive reporting for owner oversight, carrier audits, and litigation defense
- Long-Term Protection: Maintains audit-ready documentation for completed operations coverage extending 10+ years after project completion
Common Questions About OCIP and CCIP
How bcs Streamlines OCIP and CCIP Compliance
Getting started with OCIP and CCIP compliance can be daunting, but bcs makes it seamless by delivering a certificate of insurance tracking solution that provides complete control and clarity for every stakeholder.
Here’s how bcs streamlines wrap-up insurance administration and risk compliance—so you can focus on the project, not the paperwork:
- Clearly designate which coverages are managed “within the CIP” and which require separate tracking for each vendor, reducing confusion and ensuring full accountability
- Automate certificate of insurance (COI) collection, validation, and renewal tracking—eliminating manual follow-up and missed expirations
- Integrate insurance compliance, financial screening, regulatory checks, and safety pre-qualification into a unified platform for true end-to-end oversight
- Sync directly with Procore and other construction management platforms to keep compliance data flowing through your existing workflows
- Get support on demand from US-based, licensed insurance professionals and certified risk managers—available 24/7 to handle complex wrap-up scenarios
- Deliver measurable results: 95% client retention rate and verified savings averaging 15-20 administrative hours per week
Get Started with bcs
Whether you implement an OCIP or CCIP, the compliance reality is the same: wrap-up insurance creates complexity that manual tracking cannot manage.
The dual mandate of excluded coverage tracking for enrolled parties and full verification for non-enrolled vendors demands automated solutions built for construction risk management.
Schedule a demo to see how bcs turns administrative chaos into audit-ready compliance, or start your free trial to experience purpose-built technology for wrap-up insurance administration.
For COI tracking done right, get bcs.
