OCIP vs CCIP: which wrap-up program is right for your construction project?

Key takeaways

• An OCIP is purchased and managed by the project owner; a CCIP is purchased and managed by the general contractor.
• Both programs consolidate coverage for all enrolled parties under a single policy, reducing gaps and simplifying claims.
• In California, OCIPs are common on public infrastructure and large commercial builds; CCIPs are the default choice for GCs who run multiple projects.
• The right choice depends on who controls the project, the total construction value, and your risk tolerance.
• Kavana Insurance helps California contractors and developers evaluate, enroll in, and manage wrap-up programs of all sizes.

What is a wrap-up insurance program?

Imagine a large hospital renovation in Sacramento. Twenty subcontractors show up on day one, each carrying their own general liability and workers’ comp policies from five different carriers. When a scaffold collapses and a worker gets hurt, nobody can agree on whose policy responds first. Lawyers get involved. The project stalls.

A wrap-up program exists to prevent exactly that scenario. Instead of every contractor bringing their own coverage, one master policy covers the entire project — the owner, the general contractor, and every enrolled subcontractor — under a single carrier and a single claims process.

There are two flavors: the Owner-Controlled Insurance Program (OCIP) and the Contractor-Controlled Insurance Program (CCIP). They work the same way in principle, but who buys the policy — and who controls it — changes everything.

New to wrap-up insurance? Read our full guide: Wrap-up insurance explained: OCIP vs. CCIP for construction

How an OCIP works

In an OCIP, the project owner — a city government, a hospital system, a private developer — buys and administers the program. Every contractor and subcontractor who works on that project gets enrolled. Their premiums are typically “backed out” of their bids, meaning the owner pays for coverage in exchange for lower contract prices.

Who typically uses OCIPs in California:

• State and local government agencies (CalTrans highway projects, UC campus expansions, LAUSD school construction)
• Large private developers building hotels, mixed-use towers, or data centers
• Healthcare systems managing multi-site capital programs

The owner controls the policy, handles claims, and carries the administrative load. In exchange, they get consistency — the same limits, the same exclusions, the same carrier — across every trade on the job.

How a CCIP works

In a CCIP, the general contractor buys and administers the program. The GC enrolls its subcontractors just like an OCIP, but the policy sits in the GC’s name. CCIPs are especially popular among national and regional builders who run several large projects simultaneously, because they can roll those projects under one master program.

Who typically uses CCIPs in California:

• National GCs building retail chains, distribution warehouses, or apartment complexes
• Design-build contractors who want consistent coverage across a full project portfolio
• Developers who prefer to hand off insurance administration to their GC

Because the GC controls the policy, they also control the claims narrative. That is a meaningful advantage when disputes arise between trades on a fast-moving job site.

Working as a subcontractor on a CCIP project? Make sure you understand what the wrap-up covers — and what it doesn’t. Learn about contractors’ insurance in California

OCIP vs CCIP: a side-by-side comparison

	OCIP	CCIP
Who buys the policy	Project owner	General contractor
Who administers it	Owner (or hired TPA)	GC (or hired TPA)
Best for	Public projects, large private developments	Multi-project GC portfolios, design-build
Typical project size	$100M+ (California standard)	$50M+ per project or rolled portfolio
Premium savings	Owner captures savings in bid reductions	GC negotiates volume pricing
Claims control	Owner controls	GC controls
Common in California	Public agencies, healthcare, higher ed	National retailers, multifamily, industrial

5 questions to help you choose

Before you decide which program fits your project, work through these questions with your broker:

1. Who controls the project budget and contract? If a public agency or developer holds the contracts with every trade, an OCIP gives them cleaner coordination. If a GC holds all subcontracts, a CCIP keeps administration in one place.
2. What is the total insured value? In California, most carriers require a minimum construction value of $100 million for an OCIP to be cost-effective. CCIPs can be structured at lower thresholds, especially if the GC rolls multiple projects.
3. How many projects will the GC run in the next 3–5 years? If the answer is “several large ones,” a rolling CCIP often delivers better pricing than project-specific OCIPs.
4. Who do you want controlling claims? An owner who wants direct oversight of litigation strategy will prefer an OCIP. A GC who wants to manage subcontractor disputes in-house will prefer a CCIP.
5. Does the project involve public funding? California’s Department of Industrial Relations and many public agencies have specific enrollment, reporting, and audit requirements for wrap-up programs. Your broker needs to know this on day one.

What both programs cover — and what they don’t

Both OCIPs and CCIPs typically include:

• Commercial general liability for enrolled contractors and the owner
• Workers’ compensation covering all enrolled workers on-site
• Builder’s risk for the structure under construction
• Excess/umbrella liability for catastrophic events

What wrap-up programs typically exclude:

• Off-site operations (if a sub’s truck causes an accident driving materials to the job, the wrap-up does not cover it)
• Professional liability / errors & omissions for design professionals
• Contractors’ equipment floaters for owned tools and machinery
• Work completed before enrollment in the program

That last point trips up subcontractors constantly. A tile installer who does 30% of their work before the OCIP enrollment paperwork clears may have a coverage gap. Make sure your broker walks through the enrollment timeline before any work begins.

Running a construction business in California? General liability for construction sites explains what your policy covers when you work outside a wrap-up.

A real-world example: the Bay Area office tower

A mid-size California developer — let’s call her Maria — was managing a $180 million office tower in the East Bay. She had 35 subcontractors and was worried about coverage gaps after a similar project nearby had a messy slip-and-fall claim that took two years to resolve.

Her broker at Kavana recommended an OCIP. Maria’s team enrolled all 35 subs, backed the premium cost out of their bids, and ended up saving roughly 1.2% of total construction costs compared to requiring each sub to carry their own coverage. When a concrete sub had a workers’ comp claim mid-project, the single-carrier structure resolved it in six weeks instead of six months.

Maria’s biggest surprise? The administrative work. She had not anticipated the enrollment tracking, payroll audits, and carrier reporting. Her takeaway: choose a broker who handles the administration, not just the placement.

How Kavana Insurance helps

Kavana Insurance has helped California contractors and owners navigate wrap-up programs for over 20 years. Whether you are an owner evaluating an OCIP for a public-sector build or a GC considering a rolling CCIP for your project pipeline, our team walks you through carrier selection, enrollment setup, subcontractor communication, and ongoing compliance.

We are licensed in California and work with hundreds of carriers, so we find the right fit — not just the easiest placement. Get a wrap-up insurance quote from Kavana →

Conclusion

OCIP and CCIP programs solve the same problem — fragmented coverage on complex construction projects — but they put control in different hands. If you are an owner who wants direct oversight and consistent limits across every trade, an OCIP is the right tool. If you are a GC who manages multiple large projects and wants to control claims and administration, a CCIP makes more sense.

The most important step is not which program you choose — it is choosing a broker who understands California’s regulatory requirements, enrollment timelines, and carrier market well enough to set the program up correctly from day one.

Kavana Insurance is that broker. Reach out today and we’ll help you figure out which wrap-up structure fits your project.