Here's How You Can Protect Your Business

How OCIPs and CCIPs Encourage Safe Practices Part 1

Proudly Serving Employers

Owner Controlled Insurance Programs (OCIPs) and Contractor Controlled Programs (CCIPs), commonly referred to as “wrap-ups,” provide general liability insurance, workers’ compensation, and excess liability coverage for all major parties involved in a construction project over the duration of the time it takes to complete the project.

OCIPs and CCIPs can help foster a culture of safety on your project sites. A Knoxville contractor lawyer from Cotney Construction Law can help you navigate the insurance process to ensure that your project benefits from wrap-ups and provides satisfactory coverage for your team. In part one of this two-part article, our Knoxville contractor lawyers will introduce the defining principles of OCIPs and CCIPs.

Types of Controlled Insurance Programs

There are two types of Controlled Insurance Programs (CIPs), the OCIP and the CCIP. Determining the sponsor depends on the agreement between the owner of the construction project and the general contractor. If the owner sponsors the project’s insurance, they will use an OCIP. Conversely, a general contractor will sponsor a CCIP if providing insurance for the project. The sponsor is responsible for acquiring insurance coverage, as well as funding and administering the insurance program.

Comprehensive Safety Plans Save You Money

When you use wrap-ups to insure your project, your insurance costs are tied to any claims activity or project costs. The easiest way to save money is to strictly enforce a thorough safety plan that prevents any accidents from happening in the first place. In today’s construction industry, CCIPs tend to have more success than OCIPs when it comes to getting preferential rates. Safety is a major part of a general contractor’s duties, so underwriters reward them with better rates since they tend to produce superior results. General contractors have increased their profit by as much as 1.5% by using a CCIP. As a result, a renewed commitment to safety has become a focal point for many general contractors.

Familiarizing yourself with the founding principles of OCIP and CCIP is an important step in understanding why the construction industry benefits from these programs. In part two, we will examine how OCIPs and CCIPs help further redefine a commitment to safety.

If you would like to speak with a contractor lawyer in Knoxville, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.