CCIP Insurance: Everything You Need to Know

Thang Truong
Thang Truong
Updated on:

Contractor Controlled Insurance Programs (CCIPs) are becoming an increasingly popular risk management solution in the construction industry. Understanding the benefits and drawbacks of CCIP insurance, as well as the differences between CCIP and Owner Controlled Insurance Programs (OCIPs), is crucial for project owners, contractors, and subcontractors. This article will provide a comprehensive overview of CCIP insurance, its coverage types, advantages, disadvantages, and the factors to consider when choosing between CCIP and OCIP.

What is CCIP insurance?

Definition of CCIP (Contractor Controlled Insurance Program)

A CCIP is an insurance program that is controlled and managed by the general contractor or construction manager of a construction project. Under a CCIP, the general contractor purchases insurance coverage on behalf of all eligible parties involved in the project, including subcontractors. The aim of a CCIP is to provide consistent and comprehensive coverage for all parties while simplifying the administration process and potentially reducing overall insurance costs.

Key components of a CCIP

CCIPs generally include a range of coverages, a centralized administration and claims management system, and a strong focus on safety and risk management practices. The specific details of a CCIP can vary depending on the size, scope, and requirements of the construction project.

Parties involved in a CCIP

The main parties involved in a CCIP are the general contractor or construction manager, the project owner, and the subcontractors. The general contractor is responsible for managing the insurance program, while the project owner and subcontractors are covered under the program’s policies.

Types of coverage in a CCIP

General liability insurance

General liability insurance provides coverage for bodily injury, property damage, and personal and advertising injury that may occur on the project site. This coverage protects the insured parties from claims arising from accidents or injuries that happen during the course of the construction project.

Workers’ compensation insurance

Workers’ compensation insurance provides coverage for medical expenses, lost wages, and rehabilitation costs for employees who are injured on the job. In a CCIP, this coverage extends to the general contractor’s employees, as well as the employees of subcontractors.

Excess liability insurance

Excess liability insurance, also known as umbrella insurance, provides additional coverage beyond the limits of the primary liability policies. This coverage is designed to protect the insured parties from large and potentially catastrophic losses.

Builder’s risk insurance

Builder’s risk insurance covers damage to the project during construction, including damage caused by fire, theft, vandalism, and certain weather events. This coverage is important for protecting the financial interests of the project owner and the general contractor.

Other coverages that may be included

Depending on the specific project and its requirements, a CCIP may also include additional coverages such as environmental liability, professional liability, or equipment and materials coverage.

Advantages of CCIP insurance

Cost savings for the contractor

By consolidating insurance coverage under one program, a CCIP can potentially result in cost savings for the general contractor and subcontractors. This is because the general contractor can negotiate better rates with insurance carriers due to the large volume of coverage being purchased.

Consistent coverage and limits for all parties

A CCIP ensures that all parties involved in the construction project have consistent coverage and limits, reducing the risk of gaps in coverage that could result in financial losses.

Centralized administration and claims management

With a CCIP, the administration and claims management processes are centralized, simplifying the process for all parties involved and ensuring that claims are handled efficiently and consistently.

Improved safety and risk management practices

CCIPs often include a strong focus on safety and risk management, which can lead to improved safety practices on the construction site and reduced risk of accidents and injuries. This, in turn, can result in lower insurance costs and a safer working environment for all parties involved.

Disadvantages of CCIP insurance

Potential for gaps in coverage

While a CCIP aims to provide comprehensive and consistent coverage, there is still a risk of gaps in coverage if the program is not set up and managed properly. It is crucial for the general contractor to work closely with an insurance broker or consultant to ensure that all necessary coverages are included and that no parties are left exposed to potential losses.

Complex administration and management

Managing a CCIP can be complex, as it involves coordinating coverage for multiple parties and navigating the claims process. General contractors must be prepared to invest time and resources into properly managing the program to ensure its success.

In some cases, there may be legal and regulatory concerns surrounding the use of CCIPs. It is important for general contractors to consult with legal and insurance professionals to ensure compliance with local laws and regulations.

Differences between CCIP and OCIP

Definition of OCIP (Owner Controlled Insurance Program)

An OCIP is an insurance program that is controlled and managed by the project owner, rather than the general contractor. Similar to a CCIP, an OCIP provides coverage for all eligible parties involved in a construction project. However, the key difference is that the project owner is responsible for managing the insurance program and ensuring that all parties have adequate coverage.

Key differences in coverage and administration

The main difference between a CCIP and an OCIP is the party responsible for managing the insurance program. In a CCIP, the general contractor is responsible for purchasing and managing the insurance coverage, while in an OCIP, the project owner takes on this responsibility. This can impact the types of coverage included, the administration process, and the overall cost of the program.

Advantages and disadvantages of each approach

Both CCIPs and OCIPs have their own set of advantages and disadvantages. CCIPs can offer cost savings for the contractor and centralized administration, while OCIPs give project owners more control over the insurance program and can potentially result in better coverage for all parties. The best choice will depend on the specific needs and priorities of the project owner, general contractor, and subcontractors involved in the construction project.

How to set up a CCIP

Steps for establishing a CCIP

  1. Identify the need for a CCIP and determine the project’s insurance requirements.
  2. Consult with an insurance broker or consultant who specializes in construction insurance programs.
  3. Develop a CCIP plan, including coverage types, limits, and program administration details.
  4. Obtain quotes from multiple insurance carriers and select the best coverage options for the project.
  5. Implement the CCIP and ensure that all parties are aware of their responsibilities and coverage details.
  6. Monitor the program throughout the construction project, making any necessary adjustments as needed.

Working with an insurance broker or consultant

An insurance broker or consultant can be an invaluable resource when setting up a CCIP. They can help you identify the appropriate coverages and limits, obtain competitive quotes from insurance carriers, and ensure that your program is set up and managed correctly.

Ensuring compliance with local laws and regulations

It is important to consult with legal and insurance professionals to ensure that your CCIP complies with all local laws and regulations. This can help you avoid potential legal issues and ensure that your program is set up for success.


CCIP insurance can be a powerful risk management tool for construction projects, offering cost savings, consistent coverage, and streamlined administration. However, it is essential for general contractors to understand the nuances of CCIP insurance and work closely with insurance professionals to ensure the program’s success. By carefully considering the advantages

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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