Successful construction projects require a comprehensive insurance program. Contractor-provided insurance is not always the most economical choice of owners. In many cases, a controlled insurance program (CIP) may be a more cost-effect and efficient way to insure a project.

A CIP, also known as a wrap-up insurance, is a risk management technique for handling loss exposures related to single or multiple-site construction activities. A single insurance program covers the job site risks of the owner, construction manager, general contractor and subcontractors. CIPs are typically used on very large construction projects involving many contractors and subcontractors. They provide an owner with certain cost savings and offer some advantages for the contractors and subcontractors working on the project.

How a CIP Works

The program owner / sponsor (usually the general contractor, design-builder, program or at-risk construction manager) procures uniform insurance coverages on behalf of some or all parties working at the job site, rather than requiring each firm to supply its own insurance. A CIP does not shift the chain of liability as negligent parties are still responsible for their own actions. The difference between a CIP and other insurance arrangements is that a single entity buys the insurance policies that will respond to most claims for all project participants.

CALTROP provides consulting services to help clients evaluate whether a CIP is right for their program. Our services include feasibility studies and recommendations on programs design, implementation and administration. We assist clients with the formulation of an effective strategy and provide the required risk management expertise on project-specific programs or on multi-year, multi-site and wrap-up programs.

CALTROP’s risk management and insurance professionals bring experience and objectivity to the CIP decision process. We assist clients in evaluating a CIP compared to traditional contractor-provided insurance. We design, implement and oversee a construction insurance program tailored to our clients’ unique needs.

CALTROP’s Controlled Insurance Program Services include, but are not limited to: