Contracts

Owner-Controlled Insurance Program

Also known as: OCIP, Wrap-Up Insurance, Owner Wrap

A single insurance program purchased by the owner covering all enrolled contractors and subcontractors on a project, replacing their individual policies.

An Owner-Controlled Insurance Program (OCIP) is a wrap-up policy purchased by the owner that provides general liability and workers' compensation coverage for all enrolled contractors and subcontractors on a single project (or a portfolio of projects). Each enrolled contractor stops carrying its own GL and WC for that project; OCIP coverage takes over. The owner saves money by aggregating premiums and capturing the safety performance of the entire project under one experience modifier.

OCIP common on large commercial projects ($50M+) and on any project where the owner wants centralized loss control and simplified claims handling. Contractors entering an OCIP must adjust their bid: deduct the cost of GL and WC they would otherwise carry on the project (typically 4 to 8% of payroll for WC, 1 to 2% of cost for GL). Failing to deduct produces a windfall for the owner and a misrepresented bid. A Contractor-Controlled Insurance Program (CCIP) works similarly but is purchased by the GC rather than the owner.

Frequently asked questions

What is the difference between OCIP and CCIP?+

OCIP (Owner-Controlled) is purchased by the project owner. CCIP (Contractor-Controlled) is purchased by the general contractor. Both are wrap-up policies covering enrolled contractors' GL and WC on a specific project. Mechanics work the same; only the named insured and program sponsor differ.

When is an OCIP used?+

On large commercial projects ($50M+ typical threshold), on projects with high coordination value across many trades, on projects where the owner wants centralized loss control, and on projects in jurisdictions where the owner can capture significant premium savings.

How do contractors bid into an OCIP?+

Deduct the cost of GL and WC the contractor would otherwise carry on the project from the bid. Typical deductions: 4 to 8% of project payroll for WC, 1 to 2% of project cost for GL. The contractor still carries auto liability, professional liability, and tools/equipment policies separately.

Related terms

Commercial General Liability Insurance

Insurance covering third-party bodily injury, property damage, and completed-operations claims arising from the contractor's work.

Workers' Compensation Insurance

Insurance covering medical and lost-wage benefits for employees injured on the job. Required by state law in most states.

Additional Insured

A party added to another's liability insurance policy by endorsement, gaining coverage for claims arising from the named insured's work.

Umbrella Policy

Excess liability coverage layered above the contractor's primary CGL, auto, and employers' liability limits.