What is an OCIP, CCIP, or wrap-up program?
OCIP stands for Owner Controlled Insurance Program. An OCIP, or wrap-up, is an insurance program for a specific construction project purchased and administered by the project owner. The program provides specific insurance coverage for the project. A CCIP is a Contractor Controlled Insurance Program. CCIPs are similar to OCIPs except the general contractor purchase the insurance. Since coverage can vary from one project to another, you should review the specific insurance policy for a project or contact your broker or attorney to obtain additional information about what is covered.
Is a wrap-up policy the same as an OCIP policy?
Some construction specialists draw distinctions between the terms, but for all practical puposes, and for your project, they are the same. In some cases, however, the contractor has the insuring responsibility for the project. In these instances, the policy insuring the general contractor and all its subcontractors is called a Contractor Controlled Insurance program (CCIP).
What is typically covered and not covered under wrap-up policies?
Wrap-up policies provide third-party general liability coverage for the insureds' activities at the project site. Coverage generally includes both bodily injury and property damage protection to non-project property, and completed operations protection for the longest applicable statutory period during which a construction defect claim can be brought.
Wrap-up policies typically exclude property damage to the project during construction, economic loss caused by any circumstance, including delay of the project, and most often workers' compensation liability.
This description of coverages and exclusions is not exhaustive. Consult your broker or attorney for a complete explanation of coverages provided and excluded in your policy.
Who participates in the wrap-up program?
Owners, general contractors, subcontractors, and any other person or business that perform or assist in actual construction of the project are required to enroll.
Who is not required to participate in the wrap-up program?
Architects, engineers, surveyors, other design professionals (as to their professional services), vendors, suppliers, materialmen, guard services, lessors of equipment, transport companies, truckers, haulers, drivers those who test, pickup, deliver, or carry materials, parts, equipment or other items or persons, crane operators (for certain carriers), and certain entities performing hazardous work (including extermination/pest control) typically are note required to enroll.
Who pays for the policy?
Usually, the owner of a project pays for the policy. The first named insured on a policy is typically the owner of the project and is responsible for the payment of the premium(s) and deductible(s). For CCIPs, the contractor is the owner of the policy. Owners often require contributions from program participants in order to recover all or part of the premiums and/or deductibles.
Are sub-tier contractors required to enroll in the program?
Yes. Subcontractors of any tier who provide actual construction work on the project are required to enroll.
Are material suppliers included in the program?
No, material suppliers are not covered by this type of insurance program and are not required to enroll.
What happens if there is a claim on the policy?
Submit the claim to your broker or to the third-party claims administrator (TPA) listed on the policy. Wrap-Up Resources does not handle claims or report claims, but will provide you with appropriate contact information upon request.