OCIP vs. CCIP Coverage: What’s the Difference and Which Program Is Right for Your Project?

Lucas Alvarez
Nov 20
4 min read

Large construction projects involve numerous moving parts, including subcontractors, trades, suppliers, architects, engineers, and general contractors, all working on the same site. With so many parties involved, the risk of accidents, injuries, and liability disputes increases significantly.

That’s why many large projects utilize wrap-up insurance programs, such as OCIPs and CCIPs. These programs consolidate coverage under a single policy to simplify insurance, reduce costs, and minimize finger-pointing when claims arise.

But what’s the difference between the two? And how do you know which one is right for your project?

In this guide, we’ll break down OCIP vs. CCIP coverage, how each program works, key benefits, potential drawbacks, and how to choose the right option for your next construction project.

What Is an OCIP (Owner Controlled Insurance Program)?

An OCIP, or Owner Controlled Insurance Program, is a type of wrap-up insurance policy purchased and managed by the project owner.

What OCIP typically covers:

General liability
Workers’ compensation
Excess/umbrella liability
Builder’s risk (sometimes included, sometimes separate)
Completed operations coverage

Under an OCIP, the owner insures all eligible contractors and subcontractors under one unified program for a specific project or set of projects.

Who benefits most from an OCIP?

Public and private project owners
Developers
Municipalities
School districts
Large institutions (universities, hospitals)

OCIPs are most common on large, complex, or public works projects.

What Is a CCIP (Contractor Controlled Insurance Program)?

A CCIP, or Contractor Controlled Insurance Program, is nearly identical to an OCIP, but instead of the owner purchasing coverage, the general contractor or construction manager controls the insurance program.

What CCIP typically covers:

General liability
Workers’ compensation
Excess liability
Contractor’s pollution liability (sometimes)
Completed operations

The GC manages enrollment, safety oversight, claims reporting, and administration for all enrolled subcontractors.

Who benefits most from a CCIP?

General contractors
Construction managers
Large commercial builders

CCIPs are popular when the GC has a strong safety culture, claims management team, or better buying power with insurers.

OCIP vs. CCIP: What’s the Main Difference?

At a high level, both programs provide nearly identical coverage, but the key difference is who controls and pays for the policy.

Feature	OCIP	CCIP
Who Purchases It	Project Owner	General Contractor
Who Manages It	Owner or Owner’s Rep	GC or Construction Manager
Who Is Covered	All eligible contractors/subs	All eligible contractors/subs
Common Use Cases	Public works, large institutions	Large commercial projects
Goals	Project control & cost savings	Safety + claims control
Premium Funding	Owner budget	Contractor contract price

In both cases, the program “wraps up” multiple parties under one policy, eliminating gaps and reducing disputes.

Why Large Projects Use Wrap-Up Programs (OCIP or CCIP)

1. Consolidated Coverage

Instead of each subcontractor purchasing their own liability or workers’ comp, everyone is covered under the same program.

2. Reduced Litigation

With separate insurance policies, disputes arise over whose carrier is responsible. Wrap-ups eliminate cross-suits between contractors.

3. Stronger Safety Oversight

OCIPs and CCIPs often include:

Job-site safety coordinators
Required safety plans
Mandatory training
Centralized risk management

Better safety typically leads to fewer claims.

4. Potential Cost Savings

Buying coverage in bulk for an entire project can create significant economies of scale.

5. Smooth Claims Handling

A single adjuster or claims team handles the project from start to finish, reducing delays and confusion.

When Should You Choose an OCIP vs. a CCIP?

Here’s how to decide which wrap-up program makes the most sense for your project:

Choose an OCIP when:

The owner wants control over risk management
The project is publicly funded
The owner will operate the building long-term
The project is extremely large or spans multiple phases
The GC changes frequently or multiple GCs are involved

Choose a CCIP when:

The GC has superior safety and claims management capabilities
The owner prefers to shift administrative burden to the GC
The GC has strong negotiating power with insurers
The project is a single phase or managed primarily by one GC
The GC needs cost predictability and coverage uniformity

How Wrap-Up Programs Affect Subcontractors

Subcontractors often need clarification on how these programs impact them.

Benefits for subcontractors:

Lower insurance costs (depending on bid structure)
No need to carry high project-specific limits
No premium audits for project-related work
Faster claims resolution

Considerations:

They must enroll and follow strict safety guidelines
They may need to adjust their bids accordingly
Some subcontractors must maintain separate coverage for non-project work

Ultimately, wrap-ups reduce administrative complexity and big-claim exposure for subcontractors.

Do OCIP and CCIP Include Workers’ Compensation?

Most wrap-ups include general liability + workers’ comp, but not always.

Some programs only include liability coverage, especially on smaller jobs. Others are “full wrap-ups” that bundle:

General Liability
Workers’ Comp
Excess/Umbrella Liability
Builders Risk (optional)
Pollution Liability (optional)

The specific structure depends on the owner/GC and underwriting carrier.

Common Mistakes When Implementing OCIPs and CCIPs

Not enrolling subs early enough
Not identifying excluded trades
Poor communication between owner/GC and subcontractors
Underestimating administrative workload
Improperly adjusting subcontractor bids for wrap-up credits

Working with a skilled insurance advisor helps avoid these issues and ensures a smooth rollout.

OCIP vs. CCIP - Which Is Right for Your Project?

Whether you choose an Owner Controlled Insurance Program (OCIP) or a Contractor Controlled Insurance Program (CCIP), both solutions provide powerful protection for large-scale construction projects.

They streamline coverage, prevent disputes, reduce costs, and enhance job-site safety.

The key difference comes down to who controls the program, the owner (OCIP) or the general contractor (CCIP).

If you want help determining which wrap-up program is best for your project, our team specializes in construction risk and can guide you through the process.