Contractor Controlled Insurance Program (CCIP)
A wrap-up insurance program purchased by the general contractor to cover all subcontractors on a construction project.
What It Is
A Contractor Controlled Insurance Program (CCIP) is a wrap-up insurance arrangement where the general contractor, rather than the project owner, purchases the consolidated insurance program covering all subcontractors on a construction project. Like OCIPs, CCIPs typically include CGL, workers compensation, and excess/umbrella coverage for all enrolled contractors.
CCIPs are preferred by general contractors who want to control the insurance program, ensure uniform coverage across all subs, and capture the insurance cost savings that wrap-up programs can generate. The GC deducts a credit from each subcontract amount to reflect the insurance the GC is providing.
The administrative structure is similar to an OCIP, with enrollment, reporting, and claims management handled by a wrap-up administrator working on behalf of the general contractor.
Why It Matters for Brokers
Many general contractors maintain standing CCIPs that they deploy on projects above a certain threshold. Brokers serving GCs must understand CCIP structure, enrollment requirements, and how to coordinate with subcontractors' brokers who need to exclude the CCIP project from their clients' policies. For brokers whose clients are subcontractors enrolled in CCIPs, understanding how the wrap-up affects their client's coverage and premium is essential for proper account management.
Real-World Example
A general contractor with a standing CCIP deploys it on a $45M commercial office building project. The CCIP enrolls 22 subcontractors and provides $1M/$2M GL, statutory workers comp, and $10M excess for all enrolled parties. The GC's broker manages the enrollment process, deducting an average of 2.5% from each subcontract as the insurance credit. The wrap-up saves approximately $400,000 compared to decentralized coverage.
Common Mistakes
- 1Not properly calculating and deducting insurance credits from subcontract amounts, which affects the project's insurance economics.
- 2Failing to coordinate CCIP enrollment with subcontractor policy exclusions, creating coverage conflicts.
- 3Not accounting for completed operations coverage after project completion, which requires an extended completed operations tail.
How brokerageaudit.com Handles This
BrokerageAudit supports CCIP administration with subcontractor enrollment tracking, insurance credit calculations, and automated certificate management throughout the project lifecycle.