Both wrap-up insurance and the Owner-Controlled Insurance Program (OCIP) are forms of insurance used in construction projects.
Who gets and controls the insurance coverage is the main difference.
With wrap-up coverage, the general contractor or project sponsor obtains and oversees the policy, whereas with an OCIP, the project owner purchases and manages the insurance.
The parties covered and the amount of coverage offered by each type of insurance may differ.
Last but not least, depending on the location and nature of the project, wrap-up insurance may not always be readily available or cost-effective.
Before selling insurance, insurance companies may have specific requirements or limits.
Additionally, a particular building’s inherent risk may be so high that third-party insurers simply cannot agree to take on the risk for financial or administrative reasons.
