Here are the two types of wrap-up insurance: OCIP and CCIP.
Wrap-up insurance wraps workers’ compensation, general liability, and excess (or umbrella) liability coverage into one convenient policy. You can even add builders risk insurance to your wrap policy. The other benefit of a wrap policy is that it covers all of the parties involved in a construction project, from the project owner down to the least involved subcontractor. But not all wrap policies are created equal! Here’s a brief guide to the two different types of wrap-up insurance: OCIP and CCIP.
OCIP, or owner controlled insurance programs, are purchased and controlled by the project owner.
CCIP, or contractor controlled insurance programs, are bought and controlled by the contractor. The difference between the two policies is not the type of protection that they offer, but who’s managing them.
Why does it matter? If you’re a subcontractor, it probably doesn’t. If, however, you’re involved in the project on an ongoing basis, you may want to retain control of the insurance coverage. For example, whoever owns the policy will control the claims management process. While all parties will be covered if a claim does arise, either the owner or the contractor will be able to spearhead the claims process, depending on who controls the policy.
There’s a benefit to being the policy owner and a benefit of letting the other party take the wheel. If, for example, you’re a contractor who doesn’t have time to deal with administrating a policy, OCIP coverage could be a win-win for you and the project owner.
Which type of wrap-up insurance is right for your project? It depends! To have an expert assess your unique situation and help you decide whether it would be best served by OCIP Insurance or CCIP Insurance coverage, contact Nahai Insurance Services. Our staff of experienced wrap policy professionals can help you best protect your upcoming project.