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Owner-Controlled Insurance Programs


An Owner-Controlled Insurance Program (OCIP) is a wrap-up under which a project owner provides various insurance coverages to contractors and subcontractors. OCIPs comprise about 90% of the wrap-up programs currently being performed in the U.S. Another type of wrap-up is a contractor-controlled insurance program (CCIP), under which the general contractor is the sponsor.*

The two programs are basically the same. The main difference is sponsorship (owner vs. contractor) and the main question concerns control: Who is responsible for what? The issue of control can pose potential problems if the wrap-up is not structured with partnering and collaboration in mind. Having the proper scope definition, delineation of responsibilities, and program structure, as well as communication and cooperation, are critical to the success of any wrap-up. That said, let’s now turn to the specifics of the OCIP.

Why OCIPs Now?

OCIPs have been around for more than 40 years; however, within the last decade, we’ve seen a proliferation of this type of insurance program on construction projects throughout the U.S. and abroad.

The use of OCIPs continues to grow as a result of several factors:

  • The increase in the number of large capital improvement projects undertaken to repair the nation’s deteriorating infrastructure.

  • The booming economy, fueled by the growth and expansion of high-tech businesses.

  • The implementation of lessstringent insurance regulations.

  • A highly competitive construction insurance market.

The OCIP is detailed through the following series of articles:


* For more information on CCIPs, see “How to Put a CCIP to Work for You” by Richard C. Livermore in the September/October 1997 issue of CFMA Building Profits.

About the Author: David L. Grenieris President of C-Risk, Inc., a national risk management consulting firm providing risk management strategies and solutions to construction-industry clients. He specializes in construction, contract management, and wrap-up insurance programs.