Wrap-Up (OCIP / CCIP)

A wrap-up, formally a controlled insurance program (CIP), is a single consolidated insurance package that "wraps" most or all of the contractors and subcontractors on a large construction project into one set of policies — typically general liability, workers compensation, and excess/umbrella. When the project owner sponsors and buys the program it is an Owner-Controlled Insurance Program (OCIP); when the general contractor sponsors it, it is a Contractor-Controlled Insurance Program (CCIP). The sponsor purchases coverage centrally, and each enrolled contractor is insured under it for their work on that specific site.

Wrap-ups matter to a small subcontractor because enrollment changes how you bid. Since the wrap-up now insures your on-site liability and workers-comp exposure, you are expected to deduct the cost of that coverage from your bid — sponsors audit payroll to calculate the credit. The upside is broad, consistent limits and a single point of claims handling across the whole job; the downside is that a wrap-up only covers work performed at the enrolled site, so you still need your own "practice" policy for every other project, plus coverage for tools and mobile equipment the wrap does not touch. Large projects sometimes pair a wrap-up with subcontractor default insurance to manage performance risk separately.

The most important nuance is the completed-operations term. Construction-defect claims surface years after a building opens, so the wrap-up's extended completed-operations coverage — and any completed operations tail — should be negotiated to match the state's statute of repose, often up to ten years. Watch for sunset clauses that end the tail early, gaps between the wrap-up's expiration and your own policy, and residential wrap-ups, which some insurers restrict because of heavy defect litigation. Always obtain a copy of the actual wrap-up manual, not just a certificate, before signing the subcontract.