Controlled Insurance Programs on Construction Projects

December 2, 2019
Edgar Alden Dunham, IV - Construction Executive

Controlled insurance programs, sometimes called WRAPs or CIPs, have been around for years. But while their use in the past was generally limited to very large projects, now they are being utilized much more widely on projects of much more moderate size.

CIP stands for controlled insurance program. CIPs are generally project-specific insurance programs typically combining general liability and workers compensation insurance. The two types of CIPS are OCIPs and CCIPs. A CIP can be owner controlled, in which case it is called an OCIP, or it can be contractor controlled, in which case it is called a CCIP. The purpose of the CIP, in either case, is to lower the cost of a project by avoiding the expense of each participant bringing the cost of its own insurance to its price to do the work.

Reprinted courtesy of Edgar Alden Dunham, IV, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Mr. Dunham may be contacted at edunham@eckertseamans.com



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