Understand the Differences Between OCIP, CCIP, and Wrap-Up Insurance
The term “wrap-up” is used often when people in the construction industry are contemplating insurance coverage. A wrap up is insurance coverage that most construction owners have to consider. If you or your company are doing construction or renovation, especially if you’re working on time-sensitive projects and with subcontractors, then you should consider a wrap-up, OCIP or CCIP. If you don’t understand the differences between an OCIP and a CCIP, read on.
Insurance offers two types of wrap-up programs: Owner Controlled Insurance Programs (OCIPs) and Contractor Controlled Insurance Programs (CCIPs). In an OCIP, the property owner sponsors and controls the insurance program. In a CCIP, the general contractor sponsors and controls the program. Aside from that, OCIPs and CCIPs are quite similar.
Wrap-up programs are several insurance policies wrapped up into one insurance program. They can be used with large single-site projects as well as multi-site projects.
Programs vary widely regarding which policies are ‘wrapped.’ Even so, as a general rule, these programs insure general liability exposure for claims arising from the said construction project at the construction site throughout the policy period. Wrap-up programs often cover damages arising after construction is completed through completed operations coverage. Completed operations insures bodily injury or property damage claims that happen after the completion of a project but arise from the project itself.
To have an expert assess your unique situation and help you decide on 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.