A wrap-up (aka, owner controlled insurance program, or OCIP) is a highly effective risk financing mechanism, which is used as an alternative to traditional insurance management techniques on large construction projects. With the use of a wrap-up, the interests of the owner, construction manager, contractors, and consultants are covered by one comprehensive insurance arrangement, or wrapped up. A wrap-up provides a single point of focus on project insurance coverages, construction safety, claims management and administration, and provides a totally coordinated approach specifically tailored to the project. The use of a wrap-up also eliminates disputes among contractors and their insurers with subrogation issues, and reduces the disruption at the work site in the event of insurance claims, and can minimize any potential delays attributed to accident investigation. A wrap-up can also help facilitate small business opportunities for minority firms by eliminating procurement of large limits insurance barriers.
For professional insight on structuring and implementing an effective wrap-up insurance program, please visit c-risk.net/wrap-ups/