A contractor-controlled insurance program (CCIP) is a type of wrap-up insurance policy that is designed to protect contractors, subcontractors, skilled labourers and other employees from high-cost liabilities.

Under a CCIP, a general contractor sponsors and controls the program. CCIPs can help contractors lower their total cost of risk. This is accomplished by centralizing the purchase and administration of insurance, either for a single job site or across all of a general contractor’s projects. Other benefits of CCIPs relate to the following:

  • Increased control for contractors. CCIPs can give general contractors peace of mind, as they ensure that
    subcontractors are properly insured. In addition, because there are fewer insurance policies to consider, CCIP claims are streamlined and easier to manage.

  • Reduced costs. CCIP coverage is typically cheaper than having parties purchase their own insurance policies.

  • Centralized safety and risk management. Program sponsors—who are working in conjunction with their brokers,
    the insurer and safety professionals—can maintain centralized safety and risk management services. By centralizing these services, program sponsors can reduce the frequency and severity of injury and property damage claims.

  • Improved access to subcontractors. CCIPs can also provide general contractors with the ability to include subcontractors on a project who might otherwise not be able to bid on the job, given their limited scale and experience.

  • Reduced disputes among insured parties. By covering all of the parties on a project under one policy, wrap-up
    programs reduce coverage disputes and subrogation issues between insureds and insurance carriers for covered claims that occur on the job site.

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Running a business comes with plenty of risk, so its important to make sure that you’re protecting yourself with the appropriate coverage. Contact us today for more information on how a CGL policy can protect your bottom line.

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