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If this is your first Construction project, finding the right insurance program is the key to the project’s success. Traditionally, Project Owners require all of their Contractors to provide their own insurance in their bid. An increasingly popular insurance method is to implement a Wrap-Up Program.
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Wrap-Ups are a great risk management tool for large construction projects. There are many moving parts of a Wrap-Up program, which can seem overwhelming if you do not have the proper structure in place. The key elements of a Wrap-Up that create this structure include Program Design, Financial Risk, Administration, and Claims Management.
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A Controlled Insurance Program (CIP, also known as a Wrap-Up) is a smart risk management tool for any construction project. However, before the first shovel hits the dirt, you have a big decision to make—who will be the Sponsor for your project?
The Sponsor is responsible for the Wrap-Up’s key elements, like Program Design, Financial Risk, Administration, and Claims Management. With an OCIP, the Owner is the Sponsor for the project. With a CCIP, the General Contractor is the Sponsor for the Project.
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Once you have decided to utilize a Wrap-Up program on your construction project, it’s important to decide who will Sponsor the program. Determining the best Sponsor is crucial, as this sets your project up for success.
The Sponsor is responsible for the Wrap-Up’s key elements, like Program Design, Financial Risk, Administration, and Claims Management. With an OCIP, the Owner is the Sponsor for the project. With a CCIP, the Contractor is the Sponsor for the Project.
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You have decided to utilize a Controlled Insurance Program (CIP, also known as a Wrap-Up) for your construction project. That’s great! Now deciding who will be the Sponsor for your project is crucial for its overall success.
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Wrap-Up Insurance Programs are an attractive alternative to insure a project. These programs allow for the Purchaser (typically an Owner, Developer, or General Contractor) to reduce the overall costs of insurance while simultaneously reducing administrative costs and consolidating the management activities of the program. These products are designed to streamline the insurance process between a single Purchaser, Broker, and Underwriter. Below are 6 types of Wrap-Up Programs:
Topics: Wrap-Up Insurance, CCIP, OCIP
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Whether this is your first construction project or you’re a seasoned expert, finding the right CIP is key to the success of your project and procuring the best rates. It’s important to remember that the most successful programs are from project participants who work as a team. Continue reading this post to learn about the 4 components of a CCIP and OCIP.
Topics: Wrap-Up Insurance, CCIP, OCIP
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Construction projects can benefit from different types of controlled insurance programs: an Owner Controlled Insurance Program (OCIP) or a Contractor Controlled Insurance Program (CCIP). While a general contractor sponsors a CCIP, a construction project owner is responsible for sponsoring an OCIP.
When determining which program is best for your project, here are some of the benefits and challenges you should be aware of.
Topics: Wrap-Up Insurance, CCIP, OCIP
