Glossary · PA Workers' Comp

Wrap-Up Insurance (OCIP/CCIP)

A project-specific insurance program — Owner-Controlled (OCIP) or Contractor-Controlled (CCIP) — that provides workers' comp for all contractors on a large construction project.

Definition

A wrap-up insurance program, also called a controlled insurance program (CIP), is a project-specific insurance arrangement used on large construction projects in which one party — typically the project owner (OCIP) or general contractor (CCIP) — purchases workers' comp and general liability coverage for all enrolled contractors and subcontractors on the project.

Wrap-Up Insurance Programs: How OCIPs and CCIPs Work and the Subcontractor Payroll Exclusion

Wrap-up programs are typically used for construction projects with $50 million+ in hard construction costs. By centralizing coverage, the program owner achieves economies of scale and uniform coverage for all project participants.

For enrolled subcontractors, the enrolled work is excluded from their own workers' comp policy — they receive a "wrap-up credit" reducing their own premium for the period and payroll covered by the wrap-up.

From a contractor perspective, it's critical to properly track and report payroll that is covered by a wrap-up program to avoid paying double premium. Wrap-up payroll exclusions are a common source of audit adjustments.