The Complete Guide to Owner-Controlled Insurance Programs (OCIP & CCIP)

Understanding Owner Controlled Insurance Programs

Owner controlled insurance programs are complex insurance products that can offer great opportunities for cost savings, superior risk management, and streamlined insurance claims processing for property owners. However, getting started with an owner controlled insurance program is more involved than setting up standard construction insurance policies. The goal of this guide is to explain everything you need to know in order to implement and manage an owner controlled insurance program. If you already know how OCIP insurance works or simply want to compare coverage options from the best insurers, you can request a custom quote and consult with specialist brokers for our top picks below:

1. Travelers (Best Overall)
2. The Hartford (Best for Government)
3. Liberty Mutual (Best for Residential)

Table of Contents

• Understanding Owner Controlled Insurance Programs
  • What Is an Owner Controlled Insurance Program (OCIP)?
  • How OCIPs Work
• OCIP Coverage
  • What Do Owner Controlled Insurance Programs Cover?
  • What Coverage is Excluded from OCIPs?
• Advantages & Disadvantages of OCIPs
  • What are the Benefits of Owner Controlled Insurance Programs?
  • Disadvantages of Owner Controlled Insurance Programs
• OCIP vs. CCIP
  • What is the difference between an owner controlled insurance program and a contractor controlled insurance program?
• Finding the Best Owner Controlled Insurance Program
  • The Best OCIPs: Top Providers
• References

What Is an Owner Controlled Insurance Program (OCIP)?

An owner controlled insurance program is a consolidated insurance program (CIP) designed to cover the primary liabilities arising from a construction project. OCIPs bundle the coverage benefits of several key insurance policies—including general liability, workers’ compensation, and excess/umbrella liability—into a single managed program. Other protections like builders risk or pollution liability may also be included, though these are typically maintained as separate policies.

OCIPs are a type of controlled or consolidated insurance program (CIP), interchangeably referred to as a wrap-up insurance plan. CIPs are called wrap-up insurance programs because they allow coverage for multiple parties and from multiple policies to be bundled into a single insurance solution. CIPs can be sponsored by the property owner, the contractor(s), or both. Programs sponsored by the contractor are known as contractor controlled insurance programs (CCIP).

It is also possible for multiple parties (for instance, the owner and the lead contractor) to jointly sponsor the insurance program. While occasionally called a partner controlled insurance program, the acronym PCIP is more commonly used in the industry as a synonym for an OCIP (Principal Controlled Insurance Program).

This guide will focus on owner controlled insurance programs because they are a primary standard for large-scale projects; however, most of the information in this guide is relevant to all types of consolidated insurance programs.

How OCIPs Work

OCIPs are a well-established type of insurance product that were first introduced in the mid-20th century to provide cost savings and administrative efficiencies for large commercial construction projects with budgets exceeding $50-100 million. Over the last several decades, these insurance programs have become increasingly popular and are now commonly used for smaller projects as well.

Unlike the traditional construction insurance model, where each contractor or subcontractor purchases their own individual insurance policies to cover their liability, under owner controlled insurance programs, the property owner or developer, general contractor, and subcontractors all become named insureds under a single policy (the OCIP), which covers the entire project (or group of projects).

The big disadvantage of the traditional construction insurance model from the standpoint of the property owner is that each contractor purchases their own insurance and bakes their individual policy costs into their bids, which results in the property owner indirectly paying for the cost and overhead of dozens of policies. Additionally, in the event of a loss, legal and administrative costs under the traditional model can be significant due to the high volume of disputes and cross-claims between various insurers. By streamlining everything into a single policy, property owners can reduce these frictional costs and more efficiently cover losses if they occur.

OCIPs are usually set up for individual projects; however, it is possible to create “rolling” OCIPs, in which the same insurance program is used for a number of similar projects or for a series of projects. Rolling OCIPs are common among large property owners, such as real estate investment trusts or state universities, that usually have a number of construction projects underway at any given time.

OCIP Coverage

To understand exactly what type of events and property are and are not covered by an owner controlled insurance program, it is easiest to review them in the context of traditional construction project insurance coverage. In reality, an OCIP is a centralized, project-specific insurance program that provides a master policy for all participants. While it bundles key coverages like general liability and workers’ compensation, it is not a direct combination of all traditional construction insurance; it specifically excludes other mainstays like commercial auto and professional liability, and coverage is generally limited to on-site activities. While the specific structure of the program is ultimately up to the owner—who designs it with the help of an agent, program administrator, or experienced insurance consultant—it typically remains liability-focused. Consequently, policies like builders risk, while essential, are often managed as separate property policies rather than being integrated into the OCIP itself.

What Do Owner Controlled Insurance Programs Cover?

While every OCIP is uniquely tailored to the project sponsor’s needs, most of these wrap-up programs are built around a standard set of core liability policies.

1. Commercial General Liability (CGL)

Commercial general liability (CGL) is a common form of insurance that may vary slightly between insurers. However, it will commonly include important provisions that protect the owner’s interest in the construction project, which is one of the most crucial elements of the OCIP’s coverage.

Most CGL policies, including those that are part of an owner controlled insurance program, will usually contain coverage against (1) bodily injury, (2) property damage, and (3) personal and advertising injury. Contractual liability and other provisions that limit risk to the project sponsor are also critical coverage benefits that these CGL policies provide.

Contractors who enroll in the OCIP will likely already have some form of general liability insurance. If they do, they will have to discuss options with their existing CGL insurer. Ideally, the contractor can limit their policy’s coverage to not overlap or conflict with the owner controlled insurance program. Sometimes, the limited flexibility of certain insurance companies might force the contractor to carry overlapping policies or cancel their existing policy all together.

2. Workers’ Compensation

Workers’ compensation insurance is another primary component of an owner controlled insurance program. The purpose of workers’ compensation insurance is to provide compensation to employees of contractors who become injured on the construction job-site. The compensation is intended to reimburse the worker for medical bills and time that they were unable to work due to the injury. Workers’ compensation insurance is required in most states.

Including workers’ compensation insurance within the OCIP is one of the biggest drivers of cost savings for the whole program. Workers’ compensation insurance typically involves high premiums and a large number of claims. While the project sponsor pays the program’s premiums, the overall cost is still positively or negatively affected by the safety track record of the participating contractors.

When workers’ compensation insurance is added to the OCIP, the insurer will evaluate the project sponsor’s vetting process for contractors as well as the loss prevention measures that are taken for the project. These factors inform the insurer about the level of risk involved with insuring your contractors and project. If the perceived risk is low, premiums will be lower. So owners and project sponsors who responsibly evaluate contractors before hiring them, and who take effective safety measures to prevent damages and injury, will earn lower premiums than those who put less emphasis on safety.

3. Builders Risk

Builders risk insurance is critical in large construction projects, so it makes sense that builders risk is another common element of owner controlled insurance programs. Builders risk policies cover damage to the structures on the job-site in the case of damage from weather, vandalism, or theft. Rather than have each contractor purchase builders risk insurance, it is logical to have this included in the insurance program to protect the property.

4. Excess Liability

Excess liability coverage adds extended limits to an existing commercial general liability policy. While similar to commercial umbrella coverage, they differ in that excess insurance strictly follows the underlying policy form, whereas umbrella insurance can offer broader protection and fill gaps not covered by primary policies. Because coverage limits should be high and coverage gaps few, these policies are almost always included in owner controlled insurance programs.

Professional contractors may also carry excess liability insurance already. In similar fashion to their CGL policies, contractors may need to modify or eliminate their existing policies.

5. Professional Liability

It is possible for owner controlled insurance policies to include professional liability insurance (also known as errors and omissions insurance) for professionals such as engineers, architects, and other design professionals. This coverage protects against costs related to design issues caused by covered professional designers. Most design professionals carry this coverage already. Depending on the number of design professionals tied to a given project, adding this coverage to the OCIP may or may not be profitable.

That said, even when engineers, architects, and other professionals are enrolled in the OCIP, the coverage it provides is usually not a sufficient substitute for their own professional liability coverage, which will adequately protect them against economic damages that a loss may cause. As such, many contracted projects will leave it up to these professionals to carry their own coverage.

6. Subcontractor Default Insurance

Subcontractor default insurance (SDI) is an established form of coverage that provides protection similar to surety bonds. It protects the project sponsor against failure on the part of the contractor or subcontractor to complete the project. These policies cover unforeseen expenses or costs incurred from unfulfilled obligations by the contractor.

This could save owners money when compared to surety bonds, which are purchased by the contractor. Because the costs of bonds are ultimately passed on to the project sponsor, adding SDI to the OCIP can save significant money. The cost of an SDI policy is determined by the project sponsor’s vetting processes as well as the specific performance history and financial stability of the contractors enrolled in the program.

7. Completed Operations Coverage

It is generally wise to add completed operations protection to the controlled insurance program. This type of coverage extends protection to all persons enrolled in the insurance program beyond the completion date and ideally through the statute of limitations.

8. Other Optional Coverage

Many other policies can be added to the OCIP; however, which policies can be added will likely depend on the project sponsor’s choice of insurer. Some of the more common options that could be available to include in the program are:

• Pollution and Environmental Liability
• Flood / Earthquake Protection
• Industry Specific Liability Policies (Airport, Railroad, etc.)

Additionally, most coverage extensions that are available through the component policies that comprise the OCIP can be added to the OCIP as well. For instance, if builders risk insurance is included on the OCIP, then extending the coverage to include debris and pollutant removal should be possible with most insurance providers. Our guide to builders risk insurance provides a comprehensive list of builders risk coverage options.

Additional Information

An owner controlled insurance program needs to be designed and set up before construction begins. In fact, details should be worked out by the time bids are being received because contractors and subcontractors will need information about the OCIP in order to submit accurate bids. Coverage provided by the plan and enrollment by program participants should begin before breaking ground.

The majority of owner controlled insurance programs cover the active construction phase, which typically spans two to five years for large projects. However, liability doesn’t end when the building is handed over. To protect against future lawsuits—such as a structural defect discovered years later—an OCIP can be extended with completed operations coverage. This keeps the general liability protection active through your state’s statute of limitations or repose. If your program includes claims-made policies like professional liability, this post-construction extension is handled differently; in those cases, it is simply referred to as tail coverage.

Except in the case of rolling OCIPs, the insurance program will apply specifically to one job-site or multiple specific sites associated with the project. Typically, the “job-site” refers to the construction site, any on-site temporary structures or shops, and storage locations for the project. It is important to note that any other locations, even along the route between a covered job-site and a covered storage location, are not covered under the insurance program. This is one possible gap in coverage that can be filled with commercial auto insurance.

What Coverage is Excluded from OCIPs?

As discussed above, an owner controlled insurance program consists of many different insurance policies. So it stands to reason that the OCIP will contain the same exclusions as the policies that make it up.

Generally, owners can work with their insurance company to fill necessary coverage gaps; however, certain coverage (listed below) is simply not offered through an OCIP.

1. Commercial Auto Insurance

Commercial auto insurance policies are not included in OCIPs. The main reason for this is that OCIPs are strictly site-specific, whereas vehicles are mobile assets that frequently travel outside of project boundaries. Because the risk associated with commercial vehicles extends to public roads and other locations beyond the sponsor’s control, this coverage must be purchased individually by each contractor who needs it. For more information, see our complete guide on finding the best commercial auto insurance companies or truck insurance policies.

2. Surety Bonds

Contractor surety bonds are not included with any OCIP because, by design, surety bonds are purchased by the contractor through a third party who “guarantees” the contractor will complete the project as contracted. This third party typically verifies the contractors financial solvency and track-record to establish their “trustworthiness.” Because of the evaluation and verification required for each contractor (and subcontractor) who requires a surety bond, this protection is purchased outside of the OCIP by each contractor individually.

Even though surety bonds may not be included in the OCIP, similar protection can be included in the insurance program by adding subcontractor default insurance, discussed above.

3. Off-site Contractors

Contractors who do the majority of their work off of the job-site are usually not eligible for coverage under an owner controlled insurance program. For example, if someone builds a feature or component of the property away from the job site and ships it to the location, they would not be covered under this policy. This is because they are not subject to the same safety and loss prevention measures that on-site contractors adhere to, and thus, are potentially at a higher risk for loss. When the risk for loss is out of the sponsor’s hands, it makes sense to exclude them from coverage.

4. Contractors with Limited Involvement

Contractors with very little relative impact on the project may also be excluded. This is similar to off-site contractors. Perhaps the contractors rarely appear on-site or have a very small potential risk profile associated with the work they complete. These types of contractors may be good candidates to keep off of the OCIP to avoid increasing costs of the program unnecessarily.

5. Indirect Costs for Designers and Contractors

Indirect additional costs that a contractor takes on as the result of a covered incident are usually not going to be covered by the OCIP. Furthermore, design professionals such as architects and engineers are typically excluded from OCIP enrollment.

These professionals must maintain their own standalone general liability and professional liability coverage to protect against claims of bodily injury, property damage, or professional errors, as the OCIP does not extend protection to their specific scope of work.

6. Third-Party Vendors, Manufacturers, and Transporters

Typically, anyone hired for one-off and exclusively off-site purposes are not going to be included on the OCIP. This includes materials vendors and suppliers, parts manufacturers, hazardous materials transporters, and trucking services. Insurance for third-party vendors can still be purchased, but it won’t be a part of the OCIP.

Advantages & Disadvantages of OCIPs

Owner controlled insurance programs provide several advantages and disadvantages to the owners and contractors who make use of, or are covered by, them. Here we review the different pros and cons that owners and contractors find in using an OCIP.

What are the Benefits of Owner Controlled Insurance Programs?

While OCIPs require more upfront administration, they offer massive financial and risk-management incentives for the project sponsor.

Advantages for Project Sponsors / Owners

Several aspects of the owner controlled insurance program make it a beneficial method of insuring construction projects. For owners, some of the potential benefits include:

• Lowered costs through purchase of insurance in bulk. Contractors usually purchase insurance, but the costs are always ultimately passed on to the owner.
• Higher shared limits for contractors. Contractors on the policy benefit from the high aggregate limits of the entire insurance program, which are typically much higher than what an individual subcontractor could afford independently. However, because these limits are shared across the whole project, a catastrophic loss by one party can erode the coverage available to others.
• Lowered risk of accident on the job site and reduced losses from an increased focus on loss prevention.
• Centralized enrollment. OCIPs consolidate project coverage into a single program, ensuring all on-site parties are protected before they begin work. While the administrative process of providing payroll data and calculating bid credits can be intensive, it guarantees that every participant meets the project’s high insurance standards without needing to negotiate individual project-specific policies.
• Simplified claims handling and payout on damages because cross-litigation between parties on the project is largely eliminated. With OCIPs, there’s more efficient claims handling and reduced legal disputes since everyone is covered under the same policy, which removes the need for insurers to battle over subrogation.
• OCIPs offer a major benefit to the project sponsor, which is complete and precise coverage. Owners gain visibility into exactly where gaps in coverage exist because the programs are customizable and designed by the owner, with the help of an agent or insurance consultant.
• Custom coverage time frame. OCIPs are designed to cover the project for its entire duration, not a specific time limit. In fact, policies are often designed to provide coverage well beyond the build, through the statute of limitations, ensuring coverage for the entire possible period when liability is present.
• Access to more contractors. These policies give contractors who, on their own, may not be able to obtain insurance for the type of project you’re working on. Whether it is their prior experience or inability to achieve a high enough coverage limit, some contractors cannot get the right coverage for every job. OCIPs eliminate these issues.

Advantages for Contractors

While many contractors are averse to projects that use OCIPs (for reasons we’ll cover below), they can actually offer advantages:

• Better coverage. Sometimes, OCIPs will offer higher coverage limits and broader coverage to contractors than those individual contractors would be able to obtain on their own. The result is that contractors can bid on more (and/or larger) OCIP jobs that would otherwise be difficult for the contractor to secure independent insurance for.
• The improved loss prevention and safety procedures that OCIP jobs demand keeps contractors safe while on the job-site and also less likely to experience a loss.
• OCIPs, when managed well, will also offer a streamlined and clearly explained claims procedure.
• Subrogation, which is when insurance companies seek to recoup losses from damages by taking legal action on behalf of the insured, and disputes regarding fault are not an issue for OCIP covered projects because all parties are covered under the same program and only one party (the project sponsor) paid for insurance on the project. Claims made on an owner controlled insurance plan often do not affect a contractor’s private general liability loss history. However, for programs that include workers’ compensation, claims are typically still reported to rating bureaus and will impact the contractor’s Experience Modification Rate (EMR), which can lead to higher premiums on their independent insurance policies in the future.
• Subcontractors. With OCIPs, the administrative burden of monitoring project-specific general liability is significantly reduced. However, contractors must still collect and monitor insurance certificates for coverages not provided by the wrap-up program—such as commercial auto, professional liability, and off-site operations—while also verifying that each subcontractor is properly enrolled in the OCIP.

Disadvantages of Owner Controlled Insurance Programs

Despite the financial and operational benefits, taking on the responsibility of a project-wide insurance program introduces significant administrative burdens and new risk-management challenges.

Disadvantages for Owners

For project owners, OCIPs create a handful of new challenges that they must manage, including:

• Added administrative costs and effort for the owner in both establishing and maintaining the program. Owners will devote HR, accounting, and legal resources to set up the OCIP. Additionally, once the program is set up, insurers will typically require enhanced loss prevention and safety controls on the project. This obligation will fall on the project owner, the policyholder.
• It can be difficult to isolate insurance costs from contractor bids. Without extracting such costs, the savings offered by OCIPs become less impactful.
• False claims. Contractors may claim injuries that did not occur on the job-site to benefit from the OCIP. As a result, owners may need to create a more robust audit process for claims to ensure that they are valid.
• Contractors still have a strong incentive to control losses because OCIP claims are typically reported under the contractor’s own experience record, directly impacting their Experience Modification Rate (EMR) and future corporate insurance costs.
• OCIP coverage limits may not be high enough if the project experiences damages from multiple independent sources.
• Rising insurance costs. If program costs are tied to insurance market fluctuations, there is risk that costs could rise and cut into or eliminate the cost savings that these programs create.

Disadvantages for Contractors

Many contractors and subcontractors avoid projects that use OCIPs as the method of insurance. This list of disadvantages that OCIPs create for contractors and subcontractors helps explain why:

• Worse coverage. While some contractors may receive improved coverage through an OCIP, more experienced contractors may experience the opposite. OCIPs might leave coverage gaps or provide lower limits than they have with their existing policies.
• OCIP projects create a complicated bidding process because the contractor must provide estimates both with and without insurance. To accurately strip out insurance overhead without sacrificing profit margins, many firms rely on estimating software to manage these dual-bid requirements. The same applies to any of the contractor’s subcontractors.
• OCIP projects can create additional administrative burden for contractors. The time and energy required to track and report the additional information required by the OCIP is significant. To manage this without drowning in paperwork, many firms rely on construction project management software to streamline subcontractor compliance, daily logs, and enrollment documents. Additionally, contractors will need to educate any of their subcontractors on how to do the same.
• In many instances, contractors may lose out on the profit and overhead markups they typically apply to insurance costs. While they generally do not ‘pay twice’ for insurance—since their corporate insurers typically exclude OCIP-covered payroll during year-end audits—they are often forced to remove the insurance-related administrative markups from their bids.
• Contractor liability may extend beyond the duration of the OCIP, meaning the contractor could be liable for damages that occur long after project completion. Contractors can mitigate this risk by securing ‘Difference in Conditions’ (DIC) coverage or specialized wrap-up gap endorsements, as standard corporate policies often contain exclusions for work performed under a wrap-up program.
• Loss of benefits. Dividends associated with workers’ compensation, designed to reward safely completed projects, will likely go to the project owner instead of the contractor.
• If program administrators do not manage or defend claims aggressively, the contractor’s Experience Modification Rate (EMR) can be negatively impacted. Since OCIP claims history still follows the individual contractor, poorly managed settlements can lead to a higher EMR, resulting in significantly more expensive workers’ compensation premiums on future insurance policies.

As you can see, there are numerous hurdles and considerations for contractors engaging in a project that uses an OCIP. However, projects that use OCIPs are often large projects that create a large earning potential for contractors, which make some of these challenges worth working through.

OCIP vs. CCIP

While both of these wrap-up policies serve the same fundamental purpose—consolidating project-wide coverage into a single master program—the key differences lie in who sponsors the policy and who manages the administrative burden.

What is the difference between an owner controlled insurance program and a contractor controlled insurance program?

In construction, OCIPs (Owner Controlled Insurance Programs) are paid for by the project sponsor or property owner, whereas CCIPs (Contractor Controlled Insurance Programs) are paid for by the lead contractor on the construction project.

Since CCIPs operate mostly in the same way as OCIPs, why choose a CCIP over an OCIP? One big reason is cost. Sometimes, contractors with long track records of safety and strong relationships with their insurance providers can actually achieve better rates or higher limits than the project sponsor. In this case, it can make sense for the owner to simply reimburse the contractor for the cost of insurance because the terms are much more favorable.

Some contractors may regularly perform similar projects that need very similar coverage. It is possible for contractors in this situation to set up a rolling CCIP with their insurance provider, rather than creating similar policies for new projects over and over. Contractors with rolling CCIPs are also likely to save on the cost of insurance, which can benefit owners when the cost is passed on to them.

Contractors may also prefer CCIPs because it incentivizes owners to stick with them. If the contractor is no longer on the project, neither is their insurance policy. And since most major general contractors now utilize CCIPs as a standard risk management tool, they are a common and accessible option for large-scale construction projects.

Apart from the advantages of CCIPs mentioned above, there are some downsides as well. In some cases, parties that contract directly with the owner, instead of the lead contractor, may not be able to enroll in a CCIP. While the project owner is typically added to the policy as a named insured, this does not automatically extend coverage to other independent consultants or separate prime contractors. To include these parties, they must be specifically written into the program, or the owner may choose an OCIP to wrap all project participants into one policy.

Sometimes coverage limits on the CCIP apply to multiple projects being worked on by the contractor. This means that the limits can be lower for a given project if another project on the CCIP experiences a covered loss. To deal with this issue, project owners can require that the CCIP has limits that apply only to their project or even require a project-specific policy.

Owners should take an active interest in policy details, like coverage limits, claims management procedure, safety and owner-loss prevention programs, and much more. The contractor should supply owners with informative material about the insurance program, or expect to discuss and design the CCIP alongside the project sponsor.

CCIPs have become a popular alternative to their owner-controlled counterparts. The various benefits offered by CCIPs have led to a significant increase in their usage, and they are now widely utilized across the construction industry.

Finding the Best Owner Controlled Insurance Program

Owner controlled insurance programs are more complex to set up than traditional insurance policies. However, identifying reliable and experienced insurers is straightforward, as most major commercial carriers offer these programs.

Because of the intensive administration required for OCIPs, most are placed through specialized brokers. When selecting a provider, owners should prioritize the carrier’s financial strength and AM Best ratings to ensure the program remains secure throughout the duration of the project.

We’ve researched the owner controlled insurance program market and compared the top insurers based on their customer reputation, financial strength, and coverage options. Below is a list of the top providers of OCIPs:

The Best OCIPs: Top Providers

1. Travelers (Best Overall)
2. The Hartford (Best for Government)
3. Liberty Mutual (Best for Residential)

References

1. Travelers (2025). What Is Loss Sensitive Insurance? https://www.travelers.com/business-insurance/construction/loss-sensitive.
2. The Hartford (2025). Find a Construction Wrap-Up Representative. https://www.thehartford.com/commercial-insurance-agents/construction-wrap-up-contacts.
3. Liberty Mutual Group. https://www.libertymutualgroup.com/about-lm/news/articles/liberty-mutual-and-ironshore-introduce-coverage-construction-projects.
4. National Cooperative Highway Research Program. Owner Controlled Insurance Programs. https://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_308.pdf.
5. CA Department of Transportation. https://dot.ca.gov/programs/construction.
6. Marin College OCIP Program Example. Owner Controlled Insurance Program. https://fiscal.marin.edu/sites/default/files/OCIP.pdf.