Construction Program Guide

Owner Controlled Insurance Programs (Wrap-Up Insurance)

An Owner Controlled Insurance Program (OCIP), sometimes referred to as "Wrap Up Insurance," is the purchasing of insurance by the owner on behalf of the builder (contractor) rather than the traditional purchase by the contractor for the contractor and the owner for the owner. The types of insurance typically included are: Workers Compensation, General Liability, Excess Liability, Pollution Liability, Professional Liability, Builders Risk, and Railroad Protective Liability. The insurance covers contractors, subcontractors, construction management and state employees working on the construction site who are approved by the owner for participation in the program. The contractors are required to carry their own insurance for work off the site and to pay a deductible when claims occur.

Authority/Legal Basis

1. Laws

   • None

2. Regulations

   • None

3. Orders

   • None

4. Policy

   • The FHWA's October 7, 2002 memorandum summarizes FHWA's policy and guidance for the use of wrap-up insurance.

Guidance

1. General Information

   • Guide to FHWA Funded Wrap-Up Projects.
   • The FHWA's May 23, 2003 memorandum announces the availability of a Guide to FHWA Funded Wrap-Up Projects.
   • Advantages and Disadvantages of Wrap-Up Insurance for Large Construction Projects, General Accounting Office, June 1999 (.pdf, 80 kb).

2. Training

   • None