OCIP vs CCIP: How Does Wrap-Up Insurance Work?

A Texas House committee's bill analysis (C.S.H.B. 2014, 80th Legislature) puts it plainly: consolidated insurance programs are "insurance programs in which a principal, usually either an owner or general contractor, provides insurance coverages that are bundled into one insurance program for a single construction project or multiple construction projects", and the coverage "can include such insurance as general liability, workers compensation and builders risk." The same analysis says the goal "is to reduce overall insurance costs for the project by providing one policy covering everyone."

Florida's statute on public owners gives a working definition of the owner version. Under section 255.0517, an owner-controlled insurance program is "a consolidated insurance program or series of insurance policies issued to a public agency" that may provide general liability, property damage excluding real property, workers' compensation, employer's liability or pollution liability "for any contractor or subcontractor working at specified or multiple contracted work sites of a public construction project."

Either way, the program covers work at the project site. Each contractor still carries its own policies for everything else: its other jobs, its offices, and coverages the program leaves out. Florida's list of what a public OCIP may provide doesn't include auto, for example, so contractors' own auto policies keep applying there.

Florida sets conditions before a public agency may buy an OCIP (s. 255.0517). It is one state's rule for public owners, not a national standard, but it reads like a checklist any owner could borrow:

• Project size: estimated total cost of $75 million or more; $30 million or more for two or more public schools in a fiscal year; or $10 million or more for one public school.
• Completed operations coverage kept for as long as it is reasonably commercially available, "but for no less than 10 years."
• Bid or proposal specifications that "clearly specify, for all bidders or proposers, the insurance coverage provided under the program and the minimum safety requirements that must be met."
• Contractors may still buy additional coverage they believe they need, and the cost must be disclosed to the agency.
• No surety insurance in the program; a deductible or self-insured retention of no more than $1 million per occurrence; and the agency pays the deductibles on all claims.

The Texas committee analysis lists what contractors complain about, which is where an owner's program design should start: coverage that may not match what a firm normally carries, gaps "if a defect or an injury occurs after the subcontractor has left the job", policies that end before the statute of repose, off-site accidents not covered, and final payment "oftentimes unduly delayed because the administrator has not completed the insurance audit."

The saving is the gap between two estimates, so test both. Ask each bidder to show its insurance credit as a separate line, so it can be checked, and price the deductibles from the program's actual deductible and your project's likely claims, not from the best case. If the gap is small, the administration and the audit delays may cost more than it saves.

• Which coverages are wrapped, and which stay with each contractor?
• How long does completed operations coverage last after the project ends?
• Who enrolls each sub, who reports payroll, and how quickly is the final audit done so final payment isn't held?
• Who pays deductibles, and does the contract pass any of them to the contractor that caused the loss?
• Does it cover off-site work related to the project, such as fabrication shops and staging yards?
• How are the insurance credits shown in bids, so you can check them?

These are questions for your broker and counsel; the answers live in the program manual and the contract. For the property side, see who buys builder's risk insurance; for what the subs carry outside a wrap, how much insurance a subcontractor needs; and for the owner's other decisions on a job, the owner's guide.

An OCIP gives the owner control of the project's liability and workers' comp insurance in return for paying for it and administering it; a CCIP hands both to the GC. Enrolled firms take their insurance cost out of their bids.

Choose with numbers: compare the bidders' insurance credits with the premium, the deductibles you will really pay and the administration, and close the gaps contractors warn about before the bid documents go out.

Book a Conflo demo

1. Florida Statutes, section 255.0517, Owner-controlled insurance programs for public construction projects — The Florida Senate. Read October 22, 2026.
2. Bill Analysis, C.S.H.B. 2014 (80th Legislature), Committee Report (Substituted) — Texas Legislature, House Committee on Insurance. Read October 22, 2026.