How CCIP Insurance Can Help You Save as a Construction Company
Even for the most experienced contractors, large construction projects can appear daunting. No matter how hard you try to plan for safety and loss control, accidents can happen. Before even moving forward with the project, you’ll want to ensure that everyone working on the project is properly insured. Fortunately, CCIP insurance can help.
A contractor controlled insurance program (CCIP) consolidates insurance coverage for all parties on a job site into one blanket policy that is controlled by the general contractor. As a result, the need for individual contractor and subcontractor coverage is eliminated. In turn, the general contractor knows that sufficient coverage is in place for anything that goes wrong. Contractors tend to see CCIP insurance as a way to increase their competitiveness and minimize a project’s insurance costs – which then increases profitability.
Although owner controlled insurance programs (OCIPs) are common the construction industry, CCIPs are becoming increasingly popular, too. A CCIP allows the general control to control the program, whereas the owner of a project sponsors the controlled insurance program. A CCIP provides benefits, including commercial general liability insurance, excess liability insurance, workers’ compensation insurance, and more. All of these policies are handled under one master policy, making it easier for the general contractor to review and control.
Another benefit of CCIP insurance is that it generally costs less than if every contractor on the job purchases the same coverage individually. The general contractor will reduce the contract (payment) amount for each contractor or subcontractor to reflect the cost of the CCIP. All parties must agree to and accept the conditions of the CCIP contract in order to participate.
However, CCIP insurance is not for every contractor. Find out if CCIP or OCIP is right for your project by taking to the professionals at Nahai Insurance Services. Our staff of experienced wrap policy professionals can help you best protect your upcoming project.