Enhancements and Pitfalls in Insurance Coverage for Development Projects

Owner controlled insurance programs (OCIPs) and contractor controlled insurance programs (CCIPs), also referred to as “wrap” policies, are relatively new insurance products that are commonly used to provide general liability, workers’ compensation, and other forms of insurance for commercial and residential development projects. OCIPs are purchased by real estate development project owners to provide coverage for the project owner, eligible and enrolled contractors, subcontractors, and other designated parties for work performed at a covered project site. Similarly, CCIPs provide coverage for the same parties but are purchased by general contractors for work performed at a covered project site.