OCIPS VS. CCIPS

A Real-World Look at Wrap-Up Insurance Programs, Written by Someone Who Actually Likes This Stuff

The construction world has no shortage of acronyms, but few create more confusion than OCIPs and CCIPs. On paper, both structures aim to solve the same problem: instead of every contractor bringing their own insurance to the project (and arguing about whose policy covers what when something goes sideways), you wrap everyone into one coordinated program.

Simple enough in theory. But in reality? The details matter more than ever.

Even though OCIPs (owner-controlled) and CCIPs (contractor-controlled) feel like siblings, they’re more like cousins: related, familiar, and often mistaken for one another, but ultimately shaped by two very different households with very different priorities.

This paper breaks down those differences in plain English. Not the kind that puts people to sleep, but the kind that helps owners, developers, and even insurance haters say, “this makes sense” (at least that’s the goal).

Who Actually Runs the Wrap-Up (And Why it Changes Everything)

Let’s start with the basics. An OCIP is run by the owner/developer of the project, while a CCIP is run by the General Contractor.
That’s it. That’s the headline. But the ripple effect of that single decision is enormous, because the sponsor of the program also gets to design it. This includes:

• What carrier is used

• What limits are purchased

• What’s covered

• What’s excluded

• What endorsements get added

• How claims are handled

• How safety is monitored

• What reporting looks like

These choices are not standardized. They’re not interchangeable. They're not automatically “equal but opposite.” They reflect the worldview of the person building the program. Owners build coverage around long-term exposure, lender requirements, and risk appetite, while Contractors build coverage around the construction phase and their operational reality.

Both are logical. Both are valid. They’re just… different.

Seeing the Project Through Two Very Different Lenses

A development project lives two lives. The contractor’s life, where the priority is getting the building up safely, efficiently, and on schedule. Their exposure largely ends when their scope ends. The owner’s life can go on for years after project completion, carrying risks for defects, disputes, and anything else that shows up long after construction has wrapped.

This doesn’t make the contractor bad or the owner paranoid. It simply means they experience risk on different timelines, and whichever party sponsors the wrap-up, naturally designs it around the risk they experience most directly.

The Transparency and Money Side of Things (Without Dancing Around It)

An OCIP gives the owner full visibility into premiums, subcontractor credits, claims reserves, trends, audits, everything. It must, because the owner is the one buying and managing it. A CCIP rolls those details into one line item provided by the GC. Sometimes it’s extremely clear and well-documented; sometimes it’s a neat little lump sum that leaves the owner guessing. Again, not good or bad, just structurally different. Subcontractor credits are another factor to consider and while that can get a little more complicated, it’s important to make sure how those credits flow is distinctly outlined and agreed upon in the GMP. For owners working through lender checkpoints, carrying long-term liability, and trying to understand how costs evolve over time, transparency is critical.

Coverage, Shared Limits, and the Stuff No One Mentions Until There’s a Problem

Here’s a piece that often gets glossed over: CCIPs are tied to the contractor, not the project.

If the GC gets terminated, can’t perform, or needs to be replaced mid-project, their wrap-up leaves with them. The owner then must secure a new wrap-up, which the insurance market is less enthusiastic about (and a lot more expensive) once construction is already underway. Then there’s the limits. Many contractors run several CCIPs at once, and the limits shown to the owner can often be part of a larger, shared pool. If a big claim hits another GC job, it can quietly erode the limits the owner assumed were dedicated to their project. Meanwhile, OCIP limits are project-specific, so they are dedicated to the project being covered. While it’s not the end of the world, it is absolutely something owners should clearly understand when deciding on the best structure for them and their stakeholders.

Claims Handling and Long-Tail Peace of Mind

Claims are where the real personality of a policy shows up. They can be straightforward or incredibly messy, and how they’re handled often shapes future premiums and the total cost of the project. OCIPs give owners direct influence over claims strategy and reserve decisions, which is important since it’s the owner who remains connected to the asset long-term. CCIPs keep claims management with the contractor. This works smoothly if the issue is tied to their work, but it doesn’t always align perfectly with the owner’s ongoing exposure.

Again, not a flaw, just a different set of priorities and perspective.

So When Does Each One Make Sense?

There are plenty of situations where the owner may opt for a CCIP instead of an OCIP. Smaller projects, clear scopes of work, or simply a developer that would rather pay for it to be outsourced without concern for how the program is placed and handled. OCIPs tend to be more appealing on larger, more complex developments, where long-term liability, lender reporting, transparency, and continuity of coverage matter. Not necessarily because OCIPs are better, but because owners tend to have more at stake once construction ends.

A Simple Way to Frame the Decision

If you strip away the jargon, the sales pitches, and the assumptions, the difference between an OCIP and a CCIP comes down to this: Whose risk is the program built around?

Between contractors and owners, there are different timelines, exposures, and needs. The right answer depends on which perspective is most central to the project, and who will be living with the outcome long after the last contractor has packed up.

AT IVY RISK, WE BELIEVE THE PEOPLE WHO CARRY THE RISK, SHOULD ALSO CARRY THE PEN.