The hazards and environment on a construction project is ever changing, making it inherently a risky business for every worker that sets foot on-site. When you consider the most injury prone industries annually, construction is always toward the top of that list. Given this high risk, it is vital to have comprehensive programs in place that ensure appropriate insurance coverage is provided to all team members. When evaluating options, some construction companies may prefer the traditional model (every contractor on-site is responsible for their own Workers Compensation insurance), while others may turn to a Contractor Controlled Insurance Program (CCIP).
What exactly is a CCIP?
These programs, also known as “wrap-up” insurance, involve the General Contractor (GC) purchasing a Workers Compensation insurance policy that covers ALL on-site workers for a specific project—giving the GC and the project owner assurance that the team is properly protected by a policy with adequate limits and coverages. As the sponsor of the CCIP, the GC is responsible for coordinating and overseeing coverage for subcontractors enrolled in the program. In other words, the GC provides Workers Compensation for employees of enrolled subcontractors who are injured while performing work on the specified project site.
So, what are the benefits?
While having zero accidents and injuries is always the goal, we know that injuries occur. Depending on the state, most, if not all, companies in construction are required to have Workers Compensation insurance to care for employees that are injured while working. The level of coverage within these insurance programs can vary, which means not all companies are providing adequate protection for their employees or themselves, exposing the GC and the project owner to potential claims.
This leads to the opportunity to provide all employees an option for the best possible care. A CCIP offers guaranteed protection for all project stakeholders by providing Workers Compensation, on-site General Liability, and Excess Liability insurance for the owner, GC, and enrolled subcontractors under one comprehensive program.
CCIP benefits include:
- Better buying power, especially for smaller subcontractors
- Adequate limits
- Return to work programs
- Consistent coverage
- Uniform limits
- One carrier
- Claims consistency and control
- Guaranteed coverage for enrolled Subcontractors, sub-Subcontractors, sub-sub-Subcontractors, etc.
- Coverage for the course of construction plus completed operations insurance for a period of 10 years, or the statute of repose, whichever is greater
Is a CCIP right for you?
It depends. Before a GC can move forward with purchasing this type of policy, they must first be evaluated and approved by an insurance carrier. CCIP approval requirements include an exceptional safety department and a solid track record of internal controls relative to project management. CCIP’s may not make sense for smaller GC’s as they will likely not receive the same pricing as larger contractor with an exceptional safety record.
At Bozzuto, ensuring the safety of workers has always been our top priority. Placing such a heightened importance on worker safety has granted us the opportunity to participate in a CCIP. Our size and track record of safety allows us to incorporate a CCIP at very competitive pricing while providing better overall insurance coverage for the workers, ourselves and the owners of the project. Recently, we enrolled three projects into a CCIP, and we plan to use a CCIP for all future projects.Learn more about Bozzuto Construction