What Is Wrap-Up Insurance? OCIP and CCIP Explained

An OCIP (owner-controlled insurance program) and a CCIP (contractor-controlled insurance program) are the two forms of a wrap-up: a single insurance program, bought by one party, that covers every enrolled contractor and subcontractor working on a specific construction project. The coverage works the same way in both. The only structural difference is who buys and runs the program: the project owner in an OCIP, or the general contractor in a CCIP.

What is a wrap-up insurance program?

A wrap-up is one centralized set of policies that insures the owner, the general contractor, and every enrolled subcontractor for their work at a defined project site. Instead of each firm bringing its own policies with different carriers, limits, and terms, the sponsor buys project-specific coverage that responds for all enrolled parties.

Wraps are most common on large projects such as hospitals, towers, campuses, and infrastructure, where dozens of trades overlap and the owner or GC wants one consistent program instead of a patchwork. A wrap can cover a single project or operate as a rolling wrap that folds a series of projects into one ongoing program.

What is the difference between an OCIP and a CCIP?

The difference is sponsorship: the project owner buys and administers an OCIP, while the general contractor buys and administers a CCIP.

• OCIP: the owner pays the premium, selects the carrier, sets the safety requirements, and keeps any savings if the project runs clean. Common on public work and large private developments.
• CCIP: the general contractor sponsors the program and takes on the same control and financial upside. Common with large GCs that build enough volume to justify running their own program.

For an enrolled subcontractor, the two look nearly identical day to day. Enrollment, payroll reporting, and claims all run through the sponsor's wrap administrator either way.

What does a wrap-up typically cover?

Most wraps provide general liability for enrolled parties' on-site operations, and many also include workers' compensation for on-site payroll.

• General liability. The core of every wrap. It typically covers bodily injury and property damage arising from enrolled parties' work at the project site, including claims from finished work for a stated period after the job closes. See our overview of general liability for how the coverage itself works.
• Workers' compensation. Many wraps include workers' comp and employer's liability for injuries to enrolled contractors' employees while they are working on site. Some programs are GL-only and leave workers' comp with each contractor.
• Excess liability. Wraps usually carry a dedicated excess layer above the primary limits, sized to the project rather than to any one contractor.

Builder's risk, which insures the structure itself while under construction, is often placed alongside a wrap but is a separate property policy, not part of the liability program. We cover it in our builder's risk explainer.

What does a wrap-up not cover?

A wrap does not follow you off the project site, and it does not replace most of your own insurance program. The consistent exclusions:

• Commercial auto. Vehicles are not part of a wrap, even on trips to and from the site. That exposure stays on your own commercial auto policy.
• Off-site operations. Your shop, your yard, fabrication done away from the site, and every other job you are running stay on your own program.
• Tools and equipment. The wrap insures liability, not property. Contractor's equipment, tools, and materials in your care are typically insured under your own inland marine coverage.
• Professional and pollution liability. Design errors and pollution events are typically excluded from wrap GL and need their own placements.

How does enrollment work?

Each subcontractor enrolls through the wrap administrator before starting on-site work, and only enrolled parties get coverage. The typical sequence:

1. Application. You submit an enrollment form with your current insurance details and estimated on-site payroll, which drives the program's cost calculations.
2. Confirmation. The administrator issues a certificate or welcome letter confirming your enrollment and the coverage that applies to you. Keep it with the project file; it functions much like a standard certificate of insurance for the wrap.
3. Payroll reporting. You report actual on-site payroll during the job, and a closeout audit trues up the numbers when your scope is complete.

Not every trade gets in. Sponsors designate excluded parties, often demolition, hazardous-material abatement, truckers, and vendors who never work on site. Those firms carry their own coverage and provide certificates just as they would on any other job.

Why do owners and general contractors use wraps?

Sponsors use wraps for uniform coverage, dedicated limits, tighter safety control, and the chance to keep the insurance savings.

• Uniform limits and terms. Every enrolled sub carries the same coverage, so there is no weak link with thin limits or a hollowed-out policy.
• Dedicated project limits. Wrap limits belong to the project. They are not shared with a subcontractor's other jobs, which matters most on large losses.
• Fewer disputes among insured parties. When one carrier covers everyone, there is less incentive for finger-pointing lawsuits after a loss.
• Safety and claims control. One safety program and one claims process across the whole site, run by the sponsor.
• Cost control. The sponsor buys coverage in bulk, deducts insurance costs from subcontractor bids, and keeps much of the savings if losses stay low.

What should subcontractors watch on a wrap project?

A wrap covers less than your own program does, so your job is to price the bid deduction correctly, understand how long coverage lasts after the work is done, and keep your own coverage intact for everything else.

Price the insurance credit carefully

On a wrap job, the sponsor deducts an insurance credit from your bid, an amount meant to represent what you would otherwise spend insuring that work. Your real costs rarely drop by that much, because your own premiums are driven by total payroll and receipts across all jobs, and your carrier may not give dollar-for-dollar relief for wrap work. Get the credit formula in writing, run it against your actual rates, and price the difference into your number.

Check the completed-operations tail

Wrap coverage for completed operations, meaning claims that arise from your finished work after the project closes, runs for a stated term. That term is often shorter than the period you can be sued under your state's statute of repose. Whatever risk sits past the tail is yours. Many contractor GL policies also exclude work performed under a wrap, so ask how your own policy treats the project once the wrap tail expires.

Know who pays the wrap deductible

Many wrap subcontracts charge the program deductible back to the subcontractor whose work caused the claim. On programs with large deductibles, a single chargeback can erase the profit on the job. Read the insurance provisions of the subcontract before you sign, and ask whether the chargeback is capped.

Keep your own program in force

You still need your own general liability, auto, workers' comp, and equipment coverage for everything the wrap does not touch: off-site work, other jobs, vehicles, and tools. Contractors who run wrap and non-wrap work at the same time should confirm that their own policy's wrap-up exclusion applies only to the wrap project, and does not quietly remove coverage they are counting on elsewhere.

Where a broker fits in

Wrap programs put insurance decisions inside bid math and subcontract language, which is exactly where an advisor earns their keep. Velora Risk Partners helps owners and GCs decide whether sponsoring a wrap makes sense, and helps subcontractors price wrap jobs and close the gaps a wrap leaves behind. If a wrap project is on your desk, reach out and we will walk through it with you.

Frequently asked questions

Is an OCIP better than a CCIP for a construction project?

Neither structure is inherently better. An OCIP puts the project owner in control of coverage, safety standards, and any insurance savings, while a CCIP gives the general contractor that role. Owners with large capital programs often prefer OCIPs, and high-volume general contractors often prefer CCIPs because they can run one program across many projects. For enrolled subcontractors, the day-to-day experience of enrollment, payroll reporting, and claims handling is nearly identical under either.

Does wrap-up insurance cover a contractor's trucks and equipment?

No. Wrap-up programs cover liability arising from on-site operations, typically general liability and sometimes workers' compensation. They do not cover vehicles, even on trips to and from the project, and they do not insure tools, equipment, or materials. Contractors need their own commercial auto policy and their own inland marine or contractor's equipment coverage on every wrap project.

Do subcontractors still need their own insurance on a wrap project?

Yes. The wrap applies only to enrolled parties' work at the covered project site. A subcontractor's own general liability, workers' compensation, commercial auto, and equipment coverage typically respond for off-site operations, other jobs, vehicles, and tools. Subcontractors should also confirm how their own policy treats wrap work after the wrap's completed-operations coverage expires, since many contractor policies exclude projects insured under a wrap.

What is the insurance credit or bid deduction on a wrap job?

It is the amount a wrap sponsor deducts from a subcontractor's bid to reflect the insurance cost the sponsor is now carrying on the sub's behalf. The formula is usually based on the sub's rates and estimated on-site payroll. Subcontractors should check the formula against their actual insurance costs, because their own premiums rarely drop by the full credited amount, and price any shortfall into the bid.

How long does wrap-up coverage last after construction is finished?

Wrap programs typically continue completed-operations coverage for a stated number of years after project completion, set by the sponsor when the program is placed. That term is often shorter than the statute of repose, the period during which construction defect claims can still be filed in many states. Subcontractors should get the tail length in writing and plan for the years between the wrap's expiration and the end of the repose period.

What happens if a trade is an excluded party under a wrap?

Excluded parties, often demolition contractors, hazardous-material abatement firms, truckers, and suppliers who never work on site, do not receive coverage under the wrap. They must carry their own insurance, meet the contract's limit requirements, and provide certificates of insurance just as they would on a conventional project. Being excluded is a program design decision by the sponsor, not a judgment about the firm.