What is a Controlled Insurance Program?

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The phrases CIP and Wrap-Up have become buzz words in the construction industry, but what do they really mean?

A Controlled Insurance Program (CIP), also known as a Wrap-Up, is an insurance program used to insure the construction activity related to a project. It is a program that provides on-site insurance for all enrolled parties in one package.

An Enrolled party is anyone that is enrolled into the specific CIP program. The program can provide insurance designed for a single large project (CCIP or OCIP) or multiple small projects with the same characteristics (this is known as a Rolling Owner Controlled Insurance Program, or ROCIP).

Types of Sponsors in a Controlled Insurance Program

A CIP can be sponsored by an Owner, General Contractor, Construction Manager or a combination of parties:

1. Owner Controlled Insurance Program (OCIP): An OCIP is when the Owner of the project sets up the insurance program.

2. Contractor Controlled Insurance Program (CCIP): A CCIP is when the General Contractor/Construction Manager on the project sets up the insurance program.

Depending on the program, the Owner or the General Contractor will pick which coverages will be provided through the CIP.  Both CIP options extend coverages to the enrolled parties.

Benefits of a Controlled Insurance Program

A CIP provides multiple benefits, including the following:

1. Uniformed limits across all enrolled subcontractors
2. One carrier providing all cover, limiting litigation
3. Single claim point of contact
4. Uniformed extended completed operations for all enrolled subcontractors
5. Cost savings

It's important to understand the benefits and limitations of a CIP. If you're interested in learning more about Controlled Insurance Programs, you may Contact TSIB today! You can also download our case study below to learn about the TSIB difference.