You may hear them referred to as wrap-ups, OCIPs or CCIPs (Consolidated Insurance Programs referring to Owner and Contractor controlled programs respectively). Each of these indicates a consolidated insurance program typically providing worker’s compensation and general liability coverage to all enrolled contractors and subcontractors for operations occurring at a specific project site.
In short, it is the majority of the insurance for a large construction project wrapped up into one tidy package. Wrap-up 101 Video
Relying on the individual policies of the hundreds of contractors that will be on the site injects a great deal of risk into a project. The basic concept of a wrap-up fends off gaps in coverage such as lapsed policies and inadequate limits. The singular insurance carrier significantly reduces or eliminates the need for cross litigation and streamlines the claims process allowing injured workers to get the help they need in a more simple and efficient manner. Furthermore, wrap-ups typically include site safety programs which strive to avoid those accidents in the first place.
YES! As a subcontractor, we know that you are fed a lot of information about how wrap-ups are not in your best interest. But as wrap-up experts, we work with contractors like you every day and know that we can bust some of those myths. Some of the benefits for subcontractors working under a wrap-up include:
CR Solutions is a third party wrap-up administrator. We are hired by the program sponsor to provide all administrative services associated with the wrap-up: evaluate and enroll contractors, collect certificates of insurance and payroll, negotiate insurance credits (if applicable), provide reports on the program’s progress, etc.
However, we also like to try to ensure a positive experience for all participants. We are available to answer questions or provide any information that you need to help you along in this process.
OCIP/CCIP’s almost always include a minimum of general and excess liability. However, many wrap-ups also provide worker’s compensation coverage. Some will provide other coverages such as builder’s risk, pollution liability, or professional liability. Nearly any coverage can be “wrapped-up”. For specifics on what coverages are provided in the program your company is participating in, please refer to your procedures manual. Your OCIP/CCIP certificate of insurance will provide a less detailed illustration of these coverages.
The program sponsor requires that subcontractors submit proof of insurance in order to:
As required on most construction projects, a valid certificate of insurance must remain on file in the event that your company should be required to return to project to perform punch-list or warranty work.
All OCIP/CCIP participation is mandatory, but not automatic. The sponsor has the right to enroll or exclude each contractor on an individual basis. For example, a sponsor may exclude a subcontractor from a wrap up based on the amount of actual time spent on the job site or based on sporadic scheduling. Also, some trades are excluded in various states due to their specific circumstances. The basic rule of thumb, however, is if a project site is covered by a wrap up, all subcontractors are required to participate.
All contractors and subcontractors of every tier shall be reviewed for OCIP/CCIP participation prior to beginning work at the project site. To enroll a subcontractor, simply provide your CRS Account Manager with the company name, a contact name, and an email for the subcontracted company. CRS will follow up with them for enrollment and notify your company should they fail to comply. If you feel that the subcontractor should be considered for exclusion please contact your CRS Account Manager for direction – be prepared to provide a copy of the subcontractor’s certificate of insurance.
In some cases, certain contractors and subcontractors may be excluded due to:
However, ALL contractors and subcontractors of every tier MUST be evaluated by CR Solutions and shall either be enrolled or specifically excluded prior to beginning work at the project site. In addition, excluded subcontractors must maintain a compliant Certificate of Insurance on file with CRS while on-site.
Though we prefer that the on-line process be completed when possible, we can make hard copy forms available when necessary.
Keep it. This package will contain the OCIP/CCIP Manual, your CIP Certificate of Insurance, and any other information specific to your wrap-up. This information may be useful when you need to report a claim or for your own insurance audit.
Contact us, your broker, or watch this crash course on insurance credits:
Insurance Credits 101 Video
Review the rate pages of your Workers’ Compensation policy. Each code will have a couple word description of the type of work included in that code. Compare those descriptions to the description of your work that this project. If you are still having difficulty a call to your agent/broker may be in order.
When adequate information is provided about the excess policy a rate per $1,000 of CV can be calculated. This rate can be used for purposes of your Excess Liability credit calculation. IF this information is not made available to CR Solutions then an assumption is made and the rate of 25% of the GL premium is used. Since the OCIP/CCIP is providing Excess Liability to all enrolled contractors and subcontractors then all costs normally incurred by the contractor/subcontractor for this coverage must be removed from the bid/contract amount.
For the most accurate information on how “true-ups” apply to the program that you are participating in, please refer to your procedures manual. However, in general, a final insurance credit will be calculated based on injecting the final payroll and contract value numbers into the original rates and calculations as agreed to at time of your enrollment. If this final insurance credit is greater than the original credit provided by your company then an additional amount will be due. If the program you are participating in permits a refund (i.e. if the Procedures Manual describes the Close-Out process with a two way audit) AND the original credit is greater than the final insurance credit amount then a reimbursement will be due to your company.
Insurance Credits 101 Video
Subcontractors often worry that working under a wrap-up will involve extra cost. However, when calculating the insurance costs for a wrap up, we use the same rates that are used in your practice policies. Therefore, it will be no more or no less than you would pay for insurance on a non-wrap-up project. In addition, work performed under a wrap-up should be excluded from your practice policies thus you should not pay premiums to your regular carrier for this coverage. CR Solutions can even help you determine your estimated insurance costs with just a minimum of information:
Each month, you will receive a payroll reminder email from your project’s CRS Account Manager. This email contains a customized link that will take you to the contractor login site. This customized link will automatically fill your username into that field. To set up the password, click the request password button. From there, simply check your email, click the link, and choose a password. You’re in!
Each time you enter payroll online, you will receive a confirmation email containing a summary of that entry. You may find that keeping a folder would be helpful so that you have all payroll confirmations in one location. If you ever need a copy of an entry, contact your project’s CRS Account Manager and they will provide.
Yes, contact us and we will provide you with a loss run for any OCIP/CCIP program we have enrolled you for.
Whether or not a wrap-up is in place, a subcontractor’s loss experience is a factor in project bids and, ideally, all project sponsors will choose the safest subcontractor to ensure the safest project site possible. A wrap-up serves to help level the playing field since the process deducts insurance costs from bidding, although a low EMR remains beneficial.
If you have promptly and accurately provided CR Solutions with all required information (payroll, final contract value, and final subcontractor information) then we will be able to complete our portion of the close-out evaluation within 5 business days. However, there are many other requirements that must be fulfilled prior to the release of your retention/final payment – you will need to consult your GC/CM for a more precise answer.
Each project is unique; please refer to your OCIP/CCIP Procedures Manual for details on your specific project. However, in general, CRS will begin processing your close-out from the OCIP/CCIP as soon as we received notification that your company has completed its work via the “work complete” check box found in the online payroll reporting form. This notification signals us to review your file completeness and perform a final insurance cost calculation if so required by this program.
It’s simple: be prepared. Premium audits are performed every year. These may be physical audits, telephone audits, voluntary audits, etc. No matter what the carrier calls it, the same information will be required. For each contract covered under a wrap-up the contractor should maintain complete and accurate reports including the following: contract documents, change orders, wrap-up certificates of insurance, a copy of the payroll records provided to the wrap-up administrator, and their wrap-up Workers’ Compensation policy. By providing all of this information to the auditor the contractor is showing evidence of the coverage and the exposure for which the coverage was provided. This allows the auditor to easily identify which exposures should be excluded from the contractor’s regular policy.
Aside from receiving credit for time spent under a wrap-up, a subcontractor’s regular insurance plan is affected very little. However, it’s important to remember that loss experience under the wrap-up can still affect your normal insurance premiums through your EMR.