Controlled insurance programs can either be contractor controlled (CCIP) or owner controlled (OCIP), but in either case it is basically a wraparound policy that allows the purchasing power of one large insurance policy instead of multiple smaller ones to effect a lower premium.
If the insurance is contractor controlled, the GC will provide the insurance for its own crews as well as for its subcontractors and receive a credit from the subcontractors for the amount they would have spent on their individual policies, which, in theory, should total to much less than the sum of those individual policies. Owner-controlled insurance programs will require the general contractor, along with all of its subcontractors, to provide credits to the owner who will administer the insurance program.
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