Contractor Controlled Insurance (Contractor-Controlled Insurance Program, CCIP)

Contractor controlled insurance usually refers to a contractor-controlled insurance program, or CCIP. It is a construction-project insurance arrangement in which the general contractor procures and controls the insurance for the project. That insurance covers the general contractor and the subcontractors who are enrolled in the program.

A CCIP replaces, in whole or in part, the separate policies that each trade contractor would otherwise carry. The general contractor is the controlling party and is generally the first named insured. CCIPs are principally associated with large construction projects, where one project-wide program can be more practical than many individual policies.

How a contractor-controlled insurance program works

Under a CCIP, the general contractor arranges project-specific insurance and enrolls eligible subcontractors. Participants are covered under the program rather than relying only on their own policies. The precise coverages and the entities that take part depend on the project's insurance specification and contract documents, so each program is defined by the paperwork for that job.

Because the general contractor controls the program, it also administers it. Subcontractors who are enrolled work within the program's terms for the length of their involvement on the project.

CCIP, OCIP and wrap-up programs

A CCIP belongs to a wider family of controlled insurance programs, also called wrap-up programs or wrap-ups. A controlled insurance program is obtained by a project sponsor to cover multiple project participants under project-specific insurance.

The label depends on who controls the program:

• CCIP: the general contractor controls the program.
• OCIP (owner-controlled insurance program): the project owner controls the program.

Both are forms of wrap-up insurance. The difference is the party that buys, controls and administers the coverage.

Coverages typically included

Controlled insurance programs commonly include the following coverages:

• Commercial general liability
• Workers' compensation or employers' liability
• Excess liability

The project's insurance specification sets the actual list. A bidder should treat any coverage not named in the tender documents as outside the program until confirmed in writing.

Insurance requirements in Canadian federal contracts

Federal insurance clauses concern insurance that the contractor maintains to meet its own contract requirements. The archived Standard Acquisition Clauses and Conditions Manual, Section 5-G contains the federal insurance clauses and instructs contracting officers to insert the applicable clauses into a contract annex. The manual itself is part of the Standard Acquisition Clauses and Conditions Manual on CanadaBuys.

The Public Services and Procurement Canada Solution-based supply arrangement shows how these obligations read in practice:

• The contractor must obtain and maintain the specified insurance for the duration of the contract.
• Coverage must be placed with an insurer licensed to conduct business in Canada.
• A certificate of insurance must be provided within 10 working days after contract award.
• Requirements include commercial general liability insurance and errors and omissions (professional liability) insurance for relevant contracts.

What it means for a supplier bidding on Canadian public contracts

Read the insurance clause and annex in every solicitation before pricing. The federal clauses describe coverage the contractor obtains at its own expense and maintains for the required period, and they require evidence of coverage, such as a certificate of insurance, within the stated deadline.

If you work as a subcontractor on a large construction project, ask the general contractor whether a CCIP applies. Find out whether you are enrolled, which coverages the program provides, and which policies you still need to carry. If you are a general contractor, price the cost of administering the program into your bid. In both cases, the contract documents govern, so confirm the arrangement in writing before you submit.