You won a bid on a large commercial or public project. In the award package, there's a thick enrollment packet for something called an OCIP or a CCIP. It asks for your payroll, your GL and workers' comp premiums, and a list of your coverage. You're expected to submit it within two weeks.
Most subs have seen these packets. Fewer understand exactly what they're signing up for — or more importantly, what they're signing away. This guide cuts through the jargon and explains what wrap-up programs do, what they don't do, and how to protect yourself when you're enrolled.
What OCIP and CCIP Mean
Both are "controlled insurance programs" — also called wrap-ups — that consolidate insurance for a construction project under a single program rather than having each contractor and subcontractor carry their own.
OCIP (Owner-Controlled Insurance Program): The project owner purchases and administers the wrap. Common on large public projects (universities, hospitals, government buildings, airports) and high-value private development. The owner negotiates one large policy covering all enrolled contractors and subs for work on that specific project.
CCIP (Contractor-Controlled Insurance Program): The general contractor purchases and administers the wrap. Common on large commercial projects where the GC is managing risk for a complex multi-sub job. The GC negotiates the policy and is the primary insured; subs are enrolled as additional insureds.
The mechanics are similar. The key difference is who's buying: the owner in an OCIP, the GC in a CCIP. From the sub's perspective, the most important question is the same regardless of type: what does this wrap actually cover me for?
What the Wrap-Up Covers
Typical wrap-up programs include:
- General liability: Bodily injury and property damage coverage for enrolled contractors for work performed at the project location. This is the core of the wrap-up.
- Workers' compensation: Most comprehensive wrap-ups include workers' comp for enrolled subs' employees working at the project site.
- Builder's risk: Some programs include builder's risk (property coverage for the structure under construction). Others do not — this varies by program and should be confirmed.
- Excess/umbrella: Most program sizes justify an excess layer above the GL. Typical limits are $5 million to $25 million or more for large public projects.
The wrap's coverage is specific to work at the enrolled project site. When you're working on this project, your exposure is covered under the wrap. When you leave the site, drive to another job, or work on any other project, the wrap doesn't apply.
What the Wrap Does NOT Cover
This is the critical part that subs frequently misunderstand. The wrap covers you on the enrolled project. Your own insurance must cover everything else.
| Coverage Category | Covered by Wrap? | Sub's Own Insurance Needed? |
|---|---|---|
| GL for work at enrolled project site | Yes | Not required for enrolled work |
| GL for work at other job sites | No | Yes — your policy still covers other jobs |
| Workers' comp for enrolled site workers | Typically yes | Must verify; some wraps exclude WC |
| Commercial auto (any location) | Never | Yes — you must carry your own |
| Tools and equipment | Never | Yes — bring your own inland marine |
| Completed operations after project acceptance | Varies — often limited post-completion | Yes — your own policy should carry this |
| Offsite fabrication | Usually no | Yes — your policy covers shop/fab work |
| Professional liability (design-build) | Usually no | Yes if you have design scope |
The biggest mistake: dropping your own GL because you're "covered by the wrap." This is the most dangerous error subs make. If you reduce or cancel your GL because you're enrolled in a wrap, you have no coverage for your other jobs, your shop operations, or any work you do off-site. The wrap is project-specific. Your own policy is your protection for everything else — including your exposure once the project is complete and your completed operations tail begins running.
The Bid-Credit Calculation
When you're enrolled in a wrap, you're expected to reduce your bid by the cost of the insurance the wrap is providing. This is called the "insurance credit" or "bid credit." The theory: the wrap is paying for GL and workers' comp on the project, so you shouldn't charge those costs in your bid.
Here's where subs often get hurt:
How the credit is supposed to work
The enrollment packet asks you to report your current GL and workers' comp premiums — often expressed as a percentage of payroll or revenue. The administrator calculates what the "project share" of those premiums would be based on the payroll you're putting on the job. You deduct that amount from your bid.
Example: You have a GL premium of 2% of revenue and a WC rate of $4 per $100 of payroll. For a $500,000 subcontract with $200,000 in project payroll:
- GL credit: $500,000 × 2% = $10,000
- WC credit: $200,000 payroll ÷ 100 × $4 = $8,000
- Total bid credit: $18,000
Where the math goes wrong for subs
The bid credit assumes your base rates. But your actual GL and WC costs may be lower (good EMR, favorable class, claims-free discount) or your overhead allocation may be higher than what the credit captures. Subs frequently give away margin by over-crediting, effectively subsidizing the wrap program.
Also: the bid credit doesn't account for your costs of staying insured on your other jobs. You still pay your own premiums. The wrap doesn't reduce them — it just adds coverage on this specific site. Your fixed insurance cost structure doesn't change because of one wrap enrollment.
Calculate your credit carefully. Use your actual allocated insurance cost per dollar of project revenue, not a rough percentage. Your broker can help you build a defensible credit calculation that doesn't give away more than you should. On a $1M+ subcontract, the difference between a properly calculated credit and an over-estimated one can be $15,000–$30,000.
Enrollment Process: What to Expect
Enrollment in a wrap-up typically involves:
- Completing the enrollment packet: Providing your current GL and WC carrier information, policy numbers, limits, and premiums. The administrator uses this to calculate your bid credit and confirm your coverage status during the gap period.
- Receiving a certificate from the wrap: The program administrator issues you evidence of the wrap's coverage showing you as an enrolled contractor. This is not your own certificate — it's the project-level certificate you can use to demonstrate coverage for the enrolled project.
- Maintaining your own policies: You must continue carrying your own GL, auto, and workers' comp for non-enrolled work. The administrator may require you to provide certificates showing your own coverage is maintained throughout the project.
- Submitting payroll reports: Most wrap programs require monthly or quarterly payroll reporting. This allows the wrap administrator to track the project's exposure and adjust the program accordingly. Failure to report can create compliance issues.
Completed Operations: The Long-Tail Gap
Wrap-up programs typically cover enrolled contractors during the project. What happens after the project is accepted and you're gone? This is the completed operations question — and it's where gap analysis becomes important.
Some wrap programs include extended completed operations coverage, providing protection for claims that arise from your work even years after project completion. The length of this tail varies by program — 3 years, 5 years, 10 years, or none.
If the wrap's completed operations period is shorter than the Texas statute of repose for construction defect claims (which is 10 years for most improvements to real property under Texas Civil Practice and Remedies Code §16.009), you have a gap. Your own GL policy's completed operations coverage needs to fill it.
This is a complex area. Ask the wrap administrator specifically: "What completed operations period does this program provide, and when does coverage end for enrolled subs?" Then compare that to your own GL policy's completed operations aggregate and coverage term. For a deeper look at completed operations exposure, see our guide on construction insurance.
What to Ask Before Signing the Enrollment
- What coverages are included — GL, WC, builder's risk, umbrella?
- Are my off-site operations (shop, fab, other jobs) covered in any way?
- What completed operations period does the program provide after project acceptance?
- Am I required to reduce my own GL/WC or just provide a credit in my bid?
- What payroll reporting is required and on what schedule?
- How do I obtain certificates of insurance showing my wrap enrollment?
- What happens to wrap coverage if I have a dispute with the GC/owner and am removed from the project?
Get answers to these questions before enrollment — ideally before bid submission — so the credit calculation and post-project coverage strategy are based on facts, not assumptions.
Frequently Asked Questions
Do I need to keep my own GL policy active while enrolled in a wrap?
Yes. The wrap covers you on the enrolled project only. Your own GL protects you on every other job, your shop operations, and your completed operations tail after the project is done. Canceling or reducing your GL because you're "covered by the wrap" is one of the most expensive mistakes a sub can make.
What's the difference between an OCIP and a rolling OCIP?
A standard OCIP covers a single defined project. A rolling OCIP (sometimes called a contractor-managed OCIP or program OCIP) covers multiple projects for an owner or program manager under a single policy structure. Rolling OCIPs are common for university systems, hospital networks, and school districts that have ongoing construction programs. Enrollment and payroll reporting processes are similar, but the scope is broader.
Can I negotiate the bid credit amount?
You can and should calculate it accurately. If the enrollment packet assumes you're paying more for insurance than you actually are, you're giving away margin. If your actual GL and WC rates are lower than what the packet's formula assumes (because of a good EMR or favorable class), document your actual costs and use those in your credit calculation. Some programs require you to use their formula; others accept your documented actual costs. Ask the administrator before submitting.
I was asked to provide a certificate showing I'm enrolled. What does that look like?
The wrap program administrator issues evidence of enrollment — typically on an ACORD 25 or a letter showing the program details and your enrolled status. This is different from your own certificate of insurance. If you need to show a building owner, GC, or other party that you're covered on the project, ask the program administrator for the enrollment certificate rather than providing your own policy's certificate (which may show GL excluded for the enrolled project).