FL Wrap-Up OCIP & CCIP — Save 2-5%

Consolidate insurance for every contractor under one policy. OCIP and CCIP wrap-up programs save 2-5% on large Florida construction projects. Free analysis.

Frequently Asked Questions

What is an OCIP (Owner Controlled Insurance Program)?

An OCIP is a comprehensive insurance program where the project owner purchases one insurance policy covering the general contractor, all subcontractors, and the project itself. Instead of each contractor carrying separate insurance, the owner's OCIP provides general liability, workers compensation, and builder's risk for everyone on the project. This is common on large construction projects ($50 million+) and can reduce total insurance costs by 2-5%.

What's the difference between OCIP and CCIP?

OCIP (Owner Controlled Insurance Program) is purchased by the project owner. CCIP (Contractor Controlled Insurance Program) is purchased by the general contractor. Both provide unified coverage for all contractors on a project. OCIPs are more common on public projects and very large private developments. CCIPs are used when the general contractor wants control over insurance and claims. The structure and benefits are similar—consolidated coverage and cost savings.

Do subcontractors still need their own insurance on a wrap-up project?

Subcontractors still need insurance for work outside the wrap-up project, auto liability (unless the wrap-up includes it), and any coverages excluded from the wrap-up (professional liability, pollution, etc.). They should also maintain their own workers compensation for employees working off the wrap-up project. The wrap-up only covers work performed on that specific project. Subcontractors must provide proof of coverage for excluded exposures.

How do wrap-up programs save money?

Wrap-ups eliminate duplicate coverage—instead of 50 contractors each carrying $2 million in liability, one policy covers everyone. Bulk purchasing reduces premiums. Centralized safety programs and claims management reduce losses. Competitive bidding is more accurate because contractors don't include insurance costs. Studies show wrap-ups reduce total insurance costs by 2-5% on large projects. However, administration costs and enrollment requirements can offset savings on smaller projects under $50 million.

What are the disadvantages of wrap-up insurance programs?

Wrap-ups require significant administration—enrolling contractors, tracking payroll, managing certificates, and claims reporting. Small contractors may struggle with enrollment requirements and payroll reporting. The project owner or general contractor assumes more risk and responsibility. If the wrap-up insurer becomes insolvent or disputes coverage, the entire project is affected. Wrap-ups work best on large, long-duration projects where cost savings justify administrative complexity.

Get a free quote or call (904) 900-5063 — Atesa Risk Advisors, independent Florida insurance brokerage.