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Wrap-up insurance (OCIP and CCIP) for electrical subcontractors
An owner controlled insurance program (OCIP) or contractor controlled insurance program (CCIP) usually covers your on-site general liability, workers' comp and excess on one big project. It usually leaves your trucks, tools, off-site work and much of your long-tail risk on your own policies. Here's what an enrolled electrical sub should check, how to price the insurance credit, and why you keep your own coverage.
Key takeaways
- An owner controlled insurance program (OCIP) is bought by the project owner. A contractor controlled insurance program (CCIP) is bought by the general contractor. Both are "wrap-ups": one set of policies for every enrolled trade on the site.
- A wrap usually covers on-site work only. It typically covers general liability, workers' comp and excess. Your autos and tools stay on your own policies. So does work at your shop or on other jobs.
- You usually bid net: you back your own insurance cost for that job out of the price. The administrator checks your math against your policy rate pages.
- Your own GL will probably get a wrap-up exclusion (often ISO CG 21 54) for that project. Read which edition it is before you sign.
- You still need your own core policies, from GL to auto. The wrap fills one slot on one job.
What an owner controlled insurance program is
An owner controlled insurance program is a single insurance package the project owner buys for a construction job. It covers the owner, the GC and every enrolled sub, down to your electrical crew. Owners use them on big jobs like hospitals and transit work.
A contractor controlled insurance program works the same way, but the GC buys it instead of the owner. Some projects mix the two. The owner might buy the liability and the GC might buy the workers' comp.
"Wrap-up" is the common name for both. You'll also see "controlled insurance program" or CIP. The company that buys it is the "sponsor." A broker usually runs the day-to-day as the OCIP administrator. That's who sends you the enrollment packet.
For an electrical shop, the first wrap-up usually shows up with your first big GC contract. It's a sign you're growing into commercial and industrial electrical work. It also brings a stack of paperwork your residential jobs never did.
| What the wrap usually covers for an enrolled sub | What usually stays on your own policies |
|---|---|
| Workers' comp and employer's liability for your crew while they work on the project site | Comp for your shop, your other jobs, and travel and work away from the site |
| General liability for injury and damage from your on-site work, on a policy shared by all enrolled trades | Commercial auto liability for your vans, bucket trucks and trailers, on site or off |
| Completed operations on the project for a set tail, often 6 or 10 years | Tools and equipment, including rented lifts |
| Excess liability above the wrap's GL and employer's liability | Professional liability for design-build or engineering work |
| Prefab and other work done off site, unless the site is approved in writing |
What the wrap usually covers for an enrolled electrical sub
Most wraps bundle workers' comp with general liability and excess. Some cover only liability. Each program is different, so the manual and the actual policies are what count.
Workers' comp for your crew on site
On many wraps, you get your own comp policy issued under the program. It covers your journeymen and apprentices for injuries on the project site. It doesn't cover the drive to the supply house or a service call across town.
States where comp comes only from a state fund work differently. Ohio is one. There, a sponsor usually can't put comp in the wrap unless it qualifies to self-insure, so many Ohio wraps cover liability only. See our Ohio electrician insurance page for how comp works there.
General liability and the completed-ops tail
The wrap's GL is usually one policy with every enrolled trade on it. That means the limits are shared. A big loss from the drywall sub can eat into the same aggregate that protects you. On rolling programs, several projects may share limits too.
Completed operations means injury or damage that shows up after the job is done. Wraps add a "tail" for it. Two public manuals we read show a 10-year tail and a 6-year tail. A trade group paper urges that the tail match the state's statute of repose, the deadline for construction claims. Ask what yours is in writing.
What a wrap-up leaves on your own policies
A wrap protects one site for one job. Everything else your shop does still needs its own coverage. These are the gaps that catch electrical subs most often.
Trucks, tools and gear
Wrap manuals we read say plainly that the program doesn't cover autos. They tell every contractor to carry its own auto liability and report vehicle accidents to its own carrier. Your service vans, bucket trucks and trailers need commercial auto coverage the whole time.
Tools are the same story. The project's builder's risk policy often leaves out contractor tools and equipment. That includes your wire pullers and the scissor lift you rented. A tools and equipment floater follows that gear to the site.
Switchgear, fixtures and wire that aren't installed yet may also be your risk until they're in. An installation floater can cover that gap.
Off-site work and prefab
Wraps usually cover only what happens at the project site. That's a real issue for electrical shops that build assemblies in their own shop.
Example scenario: A shop wins the electrical package on a wrapped medical office building. To save field hours, it builds lighting whips and panel kits at its own warehouse. A short in one kit starts a fire after install. Was that an on-site occurrence, or a product made off site? The line isn't always clear, and the wrap may treat it as off-site work.
Some wraps will add an off-site location. Most of those we read require the location to be approved in writing and used 100% for that one project. A shop that serves several jobs rarely qualifies.
Design work and warranty callbacks
Wraps commonly exclude professional services. If you do design-build on the electrical system, that exposure sits on your own professional liability policy.
Warranty callbacks are another gap. When you come back after closeout to swap a bad breaker, the wrap may not cover that visit. A trade group paper notes callback coverage is often negotiated for only a set period. One to two years after substantial completion is typical.
Trades the wrap won't enroll
Some parties are never enrolled. Suppliers, delivery truckers and off-site fabricators are common examples. If you're "excluded," the wrap gives you nothing and your own policies carry the whole job.
Pricing the bid: the insurance credit
On most wraps, you bid "net." You take your own cost of insurance for that job out of your price, because the sponsor is buying it. Some sponsors use "bid gross" and take the credit later. The bid documents should say which.
You prove the number on an insurance cost worksheet. Programs commonly ask for your declarations pages, rate pages and deductible details from your comp, GL and umbrella. The administrator checks your math. On one state court program we read, if you leave the cost in, the sponsor issues a deductive change order to pull it back out. GCs may also have to back out their subs' costs.
Here's the move. Only credit what the wrap really replaces. Your auto premium and tools floater keep running, so they stay in your price.
Ask your agent for the actual rates on your policies, not a rough guess. A credit that's too big hands away margin. One that's too small can get pulled back anyway.
- Read the manual before you bid. Get the OCIP manual and, if you can, the policies or binders. The manual is often part of the contract.
- Fill out the cost worksheet. Attach the policy pages the administrator asks for.
- Enroll before anyone steps on site. Most manuals say coverage starts only after you're accepted. Many confirm it with a welcome letter or certificate.
- Enroll your own subs. If you hire a low-voltage or fire alarm sub, you usually must report them too.
- Send off-site certificates. You'll show proof of your own auto, comp and GL for work away from the site.
- File monthly payroll reports. Many programs want on-site hours and payroll by class code, often by the 10th.
- Close out. File the notice of completion so your enrollment ends cleanly.
Why you still keep your own policies
The wrap covers one site for one job. Your shop runs service calls and other GC jobs at the same time. Those need your own policies.
The paperwork also needs your policies. Wrap manuals ask for certificates showing your own coverage for off-site work, often with additional insured and waiver of subrogation wording. Our certificate of insurance guide covers how those endorsements work.
Keep wrap payroll out of your own audit
One public manual tells enrolled contractors to leave project payroll off the payroll they report to their own carriers. That way you don't pay twice for the same hours. Keep the wrap's comp policy and certificate as proof for your auditor. Our guide to class codes and audits shows how audits work.
Ask for excess and contingent wording
The same manual tells subs to have their own coverage set as "excess and contingent" over the wrap for on-site work. In plain terms, your policy may respond if the wrap doesn't. Many policies won't do this unless your agent asks. An umbrella policy also adds limits above your own GL, auto and employer's liability.
Frequently asked questions
Are wrap-up insurance and an OCIP the same thing?
What does CCIP insurance stand for, and what does it protect?
What does wrap insurance cover for a subcontractor?
What insurance should a subcontractor still carry on a wrap-up job?
Do I have to take my insurance cost out of my bid?
Verdict on owner controlled insurance programs
An owner controlled insurance program can work well for an electrical sub who reads the fine print. It takes on-site GL, comp and excess off your books for one job. Your trucks and tools stay with you. So does much of the long-tail risk.
Before you sign, get three things in writing. Ask for the wrap's completed-ops tail, the edition of your own wrap-up exclusion, and the exact credit you're giving back. Then keep your own program in force. Start your quote and a licensed agent will read the manual with you before you bid.
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