Insurance is not the most glamorous topic in construction, but it is an absolute necessity. If you are a General Contractor evaluating your insurance options, then you need to consider a contractor-controlled insurance program (CCIP) to provide wrap-up style coverage for your project.

Picture this: it is a torrential downpour outside, and you have to walk ten blocks to your destination. You have two options.

  1. Put on insulated base layers, leather shoes, water resistant/proof pants, a raincoat, a water resistant/proof hat, then step outside and hope that no water seeps in the cracks before you make it to your destination.
  2. Just grab an umbrella and head out the door.

That is the difference between a contractor-controlled insurance program and traditional insurance models in the construction sector.

This article provides an in-depth exploration of CCIP insurance, advantages, and disadvantages of CCIP policies, CCIP coverage, and a comparison between OCIP and CCIP insurance.

Slash Contractor Controlled Insurance Program (OCIP)Costs with myComply

Key Takeaways

  • A contractor-controlled insurance program (CCIP) is a wrap-up policy that provides insurance coverage to all parties enrolled in a construction project and is managed by the General Contractor.
  • For contractors, CCIP insurance leads to cost reductions, greater project control, simplified claims management, and safer project sites.
  • Some of the potential disadvantages to contractors under a CCIP policy include greater administrative burden, the risk of false claims, and more complicated bidding.
  • Basic CCIP coverage spans general liability insurance, workers’ compensation, and excess liability. However, several additional coverages can be added.
  • The closest substitute for a contractor-controlled insurance program is an owner-controlled insurance program (OCIP). OCIP insurance is administrated by the Asset Owner (naturally) and shifts a lot of the administrative burden upstream. However, it also gives General Contractors less control over their insurance coverage and safety tactics.
  • myComply is a leading loss prevention solution that helps General Contractors to secure insurance discounts by ensuring that all workers are trained, onboarded, and qualified to be on site. Talk to one of our product experts today to find out more!

What is CCIP?

A contractor-controlled insurance program (CCIP) is a form of wrap-up insurance that is designed to protect Asset Owners, General Contractors, and Subcontractors from risk on the construction site. A CCIP consolidates several different coverages into one package that is then managed by the General Contractor.

A CCIP policy is popular in the construction space as it eliminates the need for every contractor on a project to secure numerous coverages for themselves. It also protects the General Contractor from the risk of Subcontractors that may carry insufficient coverages in the event of an incident.

Learn More: Traditional vs. Wrap-Up Insurance: What You Need to Know

Read on to explore some of the advantages and disadvantages to CCIP insurance, specific coverages, and how the CCIP stacks up against owner-controlled insurance programs (OCIPs).

CCIP Insurance: Advantages and Disadvantages

Though CCIP insurance is a better solution than traditional insurance models, there are some inherent drawbacks and advantages for the various parties involved in upholding, abiding by, and administrating the insurance program.

Here are the advantages and disadvantages of CCIP insurance for Owners and Contractors:

Advantages of CCIP Insurance

For Asset Owners For General Contractors
  • Stronger protection. As compared to a traditional insurance model, which can leave gaps and create risk exposure for Asset Owners; OCIPs and CCIPs provide much more complete coverage.
  • Hands-off coverage. Under a CCIP, the Asset Owner is named as an “additional insured” and is granted a wide variety of coverage from the policy with minimal administrative requirements.
  • Reduced number of insurers. Having a smaller number of insurers (or a single insurer) reduces gaps and simplifies litigation in the event of determining a responsible contractor.
  • Greater insurance limits. Wrap-up policies have much higher ceilings than traditional insurance programs, meaning that Asset Owners can rest assured knowing they their projects are covered from top to bottom.
  • Greater project control. By administrating wrap-up insurance at the General Contractor (GC) level, GC’s can control and manage their entire safety program, right down to insurance requirements.
  • Cost effectiveness. Rather than requiring Subcontractors to procure their own insurance coverage, a CCIP policy bundles it all into one, which reduces project overhead by preventing additional charges flowing upstream from each Subcontractor.
  • Safer project sites. Projects with CCIP insurance demand better safety procedures and loss prevention measures which serves to reduce incidents on-site.
  • Increased Subcontractor bidding potential. When GCs ensure their projects with a CCIP, it expands the potential Subcontractor bidding pool to other skilled trades that may not have been able to secure enough coverage independently for certain project work.
  • Simplified claims management. One policy means one channel for insurance claims. A CCIP policy can create administrative burden at the onset but can reduce administrative work in the event of insurance claims.
  • Customized coverage. General Contractors have a lot more control over their project coverage when it is bundled into one policy. This allows them to secure greater protection in some areas or limit coverage in others.

Disadvantages of CCIP Insurance

For Asset Owners For General Contractors
  • Opportunity cost. When Owners secure OCIPs, they have the opportunity to build rapport with insurance providers, which can lead to dividends in the form of rate reductions or other financial incentives. When the General Contractor manages insurance through a CCIP, this opportunity for the Asset Owner is lost.
  • Worse coverage. When Asset Owners manage insurance through an OCIP, they can ensure that all their desired coverage is met. However, under a CCIP, they are subject to the coverage obtained by their General Contractor.
  • Extended liability. It is possible for the Asset Owner to still face liability beyond the coverage included in the CCIP, generally pertaining to damages occurring after the completion of the project.
  • Greater administrative burden. CCIP policies are not light weight on the administrative end. General Contractors must manage all administrative documents from Subcontractors, control enrollment in the program, and relay all this back to the insurance provider.
  • Financial risk exposure. Though unlikely, on the off chance that a claim exceeds what is covered by a CCIP policy, the GC would be held liable.
  • The risk of false claims. Since wrap-up policies, like a CCIP, are no-fault; some Subcontractors may take advantage of their coverage by claiming damages that may not have occurred. This can damage a GCs reputation with insurers and increase premiums on future projects.
  • More complicated bidding. Sometimes, bidding on a larger project with CCIP insurance requires all Subcontractors to submit bids with and without coverage under the CCIP. This creates additional work for Subcontractors and more paperwork for General Contractors to review.

CCIP Policy Coverage

A CCIP policy includes three primary coverages and can be customized with numerous additional coverages. It is important to note that under CCIP insurance, all these coverages pertain to a specific project as opposed to a company or a specific contractor. Here is the breakdown of what is included under a CCIP policy.

1. General Liability Insurance

General liability policies provide broad coverage for standard liability risks on a construction project, including bodily injury and property damage claims that may arise as the result of day-to-day work and operations on the site. Additional provisions may also be included to further reduce your risk exposure as a CCIP administrator, but these are the primary benefits.

2. Workers’ Compensation

Workers’ compensation coverage is designed to protect workers who are injured or become sick because of their work. It covers items such as medical bills, rehabilitation, and wage losses in the event of an accident or injury. Under a CCIP policy, all employees conducting work on a project that belong to an enrolled Subcontractor are protected by the policy.

Workers’ compensation is one of the greatest cost buckets in traditional insurance programs. However, under a CCIP policy, workers compensation can be one of the greatest area of savings. That is because the insurance provider will evaluate the General Contractor’s vetting process for Subcontractors as well as their loss prevention measures in-place on the project. If it is deemed that General Contractor has a low risk estimate, then premiums will also be lower.

3. Excess Liability

Excess liability insurance (sometimes called commercial umbrella insurance) provides General Contractors with additional protection beyond the coverage limits of their general liability insurance. Excess liability insurance will only kick-in after your general liability coverage has been exhausted.

For example, your general liability coverage may protect your for up to $10 million in claims, but your excess liability coverage may tack on an additional $10 million in protection.

Additional Coverages

Off the shelf, these are the three primary coverages to expect under a CCIP insurance program. However, depending on your provider, you can add numerous other coverages to build a more comprehensive insurance program.

Talk with your agent or broker and see about adding any of the following to your CCIP:

  • Builders’ risk insurance
  • Professional liability insurance
  • Subcontractor default insurance
  • Completed operations coverage

CCIP Insurance vs. OCIP Insurance

An insurance type that is often confused with CCIP insurance is an owner-controlled insurance program (OCIP). The primary difference between CCIP and OCIP insurance is the policy holder. Under a CCIP policy, the General Contractor typically holds the policy and insures all their Subcontractors under their wrap-up program, whereas the Asset Owner will hold the policy under an OCIP policy.

Here is a short video exploring some of the key differences between CCIP and OCIP insurance:

A full breakdown of CCIP insurance vs OCIP insurance:

Cost CCIPs are generally the most cost-effective approach if the General Contractor has a strong safety record and strong standing with their existing insurance provider(s). OCIPs can be a more costly insurance option unless the Asset Owner has also ensured a number of past projects under their name and mitigated loss/damages on those projects.
Speed-to-Policy General Contractors that specialize in certain project types might be able set up a rolling CCIP with their insurance provider, where minimal administrative work is required to secure a new policy on a new project. OCIP policies can be a little slower to production as most Asset Owners do not have rolling policies established with their insurance providers. This means that a new OCIP needs to be negotiated for each project, unless the Asset Owner also has a strong policy record.
Policy Management Under CCIP insurance, the policy is managed and administrated by the General Contractor. Under OCIP insurance, the policy is managed and administrated by the Asset Owner.
Insureds Under a CCIP, The General Contractor is the first name insured, and the Subcontractors, plus any other parties are named insureds. Sometimes, the project owner is an additional insured, or they share named insured responsibilities with the General Contractor. Under an OCIP, the Asset Owner is the first named insured and the General Contractor, Subcontractors, and any other parties on the project are named insureds.
Coverage Limits Sometimes, CCIP coverage extends across multiple projects being worked by the contractor. This introduces risk and opportunity as what happens on other projects can affect the premiums being paid on the project at-hand. OCIP policies are generally project-specific, meaning that coverage should rarely extend beyond the project at-hand.
Oversight The contractor negotiates their CCIP, and the Asset Owner may not be entirely aware of the nuances of the insurance policy. Contractors should always provide detailed insurance documents to the Asset Owner and consider bringing them on as a named insured. An OCIP allows the owner to take an active role in negotiating policy limits, understanding policy details, claims negotiation procedures, safety/loss prevention programs, and more. However, this oversight comes at the cost of substantial work for the Asset Owner.

Interested in finding out more about OCIP insurance? Read our full article here.


If you are a General Contractor and are expected to build your own insurance policy on a project, then you need to seriously consider the benefits of implementing a contractor-controlled insurance program. CCIP policies are one of the best ways to actively minimize your risk exposure, prevent loss, and make your project sites safer.

And if you want to secure reduced premiums on your project, then you should talk to your insurance provider about how construction technology can be leveraged as a loss prevention measure. At myComply, our proven construction access control system helps 70% of our projects to realize insurance benefits or reductions.

If you would like to learn more about how you can use technology to ensure all workers are onboarded, manage worker certifications/documentation, automatically track time and attendance data, and more, then book some time with a product expert today!

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