Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP) have become more and more common. In this episode, we discuss what needs to be reflected in your policy to protect you in losses exceeding these "Wrap-ups."
The Issue. Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP), both also known as “Wrap-ups,” have become more and more common. There is still some disconnect within the construction industry as to coverage within these “master insurance policies” that are specifically dedicated only to a particular project or project grouping.
Why It’s Important. While the coverage provided under the wrap-up is typically broader than a contractor’s own policy(ies), wrap-ups present unique challenges and it is important to let your insurance broker know when you may become a party to a project performed under a wrap-up.
Short Answer. Have your policy(ies) reflect that they will protect you for losses exceeding the wrap-up and extend to Completed Operations following the expiration of the wrap-up policy. Get a copy of the wrap-up policy for your own internal file. You are an insured under the wrap-up policy and you have a right to have a copy.