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Insurance & Bondingaka: OCIPaka: CCIPaka: consolidated insurance programaka: rolling owner controlled insurance programaka: ROCIP

Wrap-Up Insurance (OCIP/CCIP)

In Plain English

A single insurance program that covers the owner, GC, and all subs on a large project under one policy.

Definition

Wrap-up insurance is a consolidated insurance program purchased for a single project or portfolio of projects that covers the owner, general contractor, and all enrolled subcontractors under one set of policies. An Owner Controlled Insurance Program (OCIP) is purchased by the project owner; a Contractor Controlled Insurance Program (CCIP) is purchased by the general contractor. Wrap-ups are typically used on projects exceeding $50–$100 million to reduce coverage gaps, eliminate duplicate policies, and centralize claims management.

Why It Matters in Bidding

On wrap-up projects, enrolled subcontractors must deduct their normal insurance cost from their bids because the owner or GC provides that coverage, so estimators have to strip out general-liability and often workers' comp from labor burden to avoid double-charging the project. Getting the deduction wrong makes a bid either non-competitive or under-insured on paper.

Example

Bidding into an OCIP on a hospital expansion, a mechanical sub backs out its standard GL and workers' comp markup from the labor rate per the wrap-up enrollment instructions, leaving only the residual coverage the program does not provide.

Related Terms

Commercial General Liability (CGL)Builder's Risk InsuranceAdditional Insured

Frequently Asked Questions

Enrolled subs remove the insurance costs the wrap-up provides, typically general liability and workers' comp, from their labor burden so the project is not charged twice. The bid form usually requires disclosing the deducted amount. Subs still carry coverages outside the wrap, like auto and off-site operations, and price those normally.
An Owner Controlled Insurance Program is purchased and administered by the project owner, while a Contractor Controlled Insurance Program is purchased by the general contractor. Both consolidate coverage for enrolled parties under one program. The difference is who buys, controls, and benefits from the policy's loss-sensitive savings and claims management.
Consolidating coverage closes gaps between separate sub policies, eliminates duplicate premiums, and centralizes claims so disputes between insurers are reduced. On very large projects the volume can also unlock loss-sensitive pricing and dedicated safety programs. These benefits generally outweigh the administrative overhead only above a high project-value threshold.

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