As construction projects grow larger and more complex, so do the risks, and the need for a smarter way to manage them. That’s where wrap‑up insurance programs come in. These all‑inclusive, project‑specific solutions replace the traditional patchwork of contractor‑provided policies with one coordinated approach designed to improve safety, streamline claims, and control costs. In this guide, we break down how wrap‑ups work, who they benefit, and why they’re becoming the preferred coverage model for today’s large‑scale construction projects.
What Is a Wrap Up Insurance Program?
A wrap up insurance program is a centralized insurance solution that brings all major parties on a construction project — owners, general contractors, and subcontractors — under one coordinated insurance policy (or set of policies). Instead of each contractor carrying its own coverage, the entire project is insured under a single unified program.
As construction insurance markets have tightened and carriers have become less willing to extend broad additional insured status, the old model simply doesn’t work as well as it used to. Wrap ups eliminate these issues by ensuring everyone is covered under the same umbrella.
Wrap up insurance programs come in two main forms. Both function the same way: they “wrap up” multiple lines of coverage into one comprehensive program.
Owner Controlled Insurance Program (OCIP)
An Owner Controlled Insurance Program (OCIP) is a type of wrap up insurance program where the project owner purchases and administers a single, consolidated insurance program for a construction project. Instead of every contractor and subcontractor securing their own individual policies, the owner provides coverage for all eligible parties under one unified program. Examples of core coverages included in a owner controlled insurance program are workers' compensation and excess liability coverage.
Depending on the project, some optional coverages available include professional liability insurance, environmental liability and builder's risk.
Why Project Owners Use Owner Controlled Insurance Program
Top five reasons project owners opt to use OCIPs:
- Cost Efficiency: By negotiating insurance for the entire project, owners often lower total insurance costs and reduce duplication among contractors.
- Uniform Coverage & Fewer Gaps: Everyone works under the same policy terms, avoiding coverage gaps, overlapping limits and disputes between insurers.
- Better Control Over Risk: The owner gets direct oversight of safety standard, claims, loss experience and carrier selection.
- Enhanced Safety Programs: Jobsite safety personnel and requirements, site inspections and claims oversight.
- Claims Management: All claims go through a central administrator making reporting faster, investigations more consistent and resolution more efficient.
Contractor Controlled Insurance Program (CCIP)
A contractor controlled insurance program is a project‑specific insurance program managed by the general contractor, providing uniform coverage for the general contractor and enrolled subcontractors throughout the construction project.
Core and optional coverage options are similar to those found in an owner controlled insurance program, and include builders risk, professional liability, and subcontractor default insurance.
Why General Contractors Use Contractor Controlled Insurance Program
One of the top reasons general contractors prefer to use a CCIP is it gives them direct oversight of safety programs, subcontractor compliance, claims management, and jobsite risk mitigation. This direct oversight of safety usually leads to fewer incidents and improved coordination on the jobsite.
Other reasons to purchase a contractor controlled insurance program include operational efficiency, potential cost savings due to reduced total insurance cost; and competitive advantage.
General contractors can use the CCIP as part of their bid strategy and reduce friction with subcontractors.
Why Wrap Up Insurance Works Better Than Traditional Contractor Insurance
Wrap up insurance, whether an owner controlled insurance program (OCIP) or a contractor controlled insurance program (CCIP), often performs better than traditional contractor‑provided insurance because it centralizes coverage, improves coordination, and reduces total project risk. By bringing all eligible parties under one unified program, wrap ups eliminate many of the inefficiencies and coverage conflicts that occur when each contractor purchases individual policies.
Traditional contractor provided insurance is the default model in construction where each contractor and subcontractor purchases and maintains their own insurance policies for a project. Instead of one coordinated program.
Construction Wrap Up Administration
Construction wrap up administration refers to the management and oversight of a wrap up insurance program, where the team is focused on making sure the program runs smoothly from start to finish. A skilled wrap up administration team will:
- Align contract language with the wrap up requirements
- Guide owners and general contractors through proper bidding procedures
- Support subcontractors from bid to closeout
- Provide ongoing reporting and program performance insights
- Track contractor enrollment and compliance
- Monitor claims, payrolls, and insurance costs
- Oversee safety and loss‑control activities
Why Wrap Up Administration Matters
Securing a strong construction wrap up administration will ensure cost control through centralized insurance management, reduced gaps or overlaps in coverage, standardized safety practices, greater transparency in claims and payroll reporting and an overall smoother project close out and audit results.
Great wrap up administrators don’t just react. They anticipate issues and interpret jobsite activity, identify risks early, and help the construction team make informed decisions that keep the project on track.
A Real World Example: How Strong wrap up Administration Prevents Major Problems
On a recent $600 million project, our team noticed through routine quality‑control reporting that several subcontractors had begun work without being properly enrolled in the wrap up. This meant they were potentially uninsured — a major risk if an accident occurred.
By catching the issue early, the owner, general contractor, carrier, and wrap up team quickly refined the enrollment process and ensured every contractor on site was properly covered. A potentially catastrophic gap in coverage was eliminated before it became a claim.
This is the value of proactive wrap up management.
Why Wrap Up Insurance Is the Future of Construction Insurance
The construction industry is becoming more complex, more regulated, and more focused on risk transparency than ever before. Traditional contractor‑provided insurance, where every contractor brings their own coverage, no longer aligns with the scale, pace, and financial expectations of modern projects. As a result, wrap up insurance programs, whether owner‑controlled (OCIP) or contractor controlled (CCIP), are quickly emerging as the preferred model for large and mid‑sized construction projects.
Wrap ups centralize the insurance program under one master policy, delivering consistency, cost efficiency, and improved risk management at a level traditional insurance structures simply can’t.
How NFP Can Help
Wrap up insurance is transforming how owners and contractors manage risk, costs, and safety across complex construction projects. If you’re looking for a smarter, more transparent alternative to traditional contractor‑provided insurance, NFP can help you evaluate, structure, and administer a wrap up program tailored to your project’s needs. Contact us today to learn how our construction risk specialists can support your next project with expert guidance and comprehensive wrap up solutions.
