A Contractors Guide to OCIP Insurance & CCIP Insurance

In the world of construction and general contracting, OCIP and CCIP insurance coverage is of paramount importance. Even if you're talking about a modest project, there's still a lot that could potentially go wrong. People could get injured, equipment could be damaged, a site could be rendered permanently altered negatively. While both programs offer comprehensive coverage, they differ in terms of who initiates and manages the insurance. OCIP is typically controlled by the project owner, where as CCIP is initiated and managed by the contractor. By diving into the intricacies of these construction insurance programs, you will be able to make a well-informed decision in choosing the right construction insurance program.

A black insurance agent describing the differences between ocip vs ccip to two business owners

OCIP vs CCIP

Regardless of the scope of the project you're talking about, there are two main types of Controlled Insurance Programs to concern yourself with: Owner Controlled and Contractor Controlled. When it comes to construction projects, it is crucial to understand the differences between OCIP (Owner Controlled Insurance Program) and CCIP (Contractor Controlled Insurance Program). Both OCIP and CCIP provide comprehensive insurance coverage for all parties involved in a construction project. The main difference lies in the party that takes responsibility for obtaining and managing the insurance coverage. OCIP is typically initiated and controlled by the project owner, while CCIP is initiated and controlled by the contractor.


In order to identify the right policy and plan administrator, it is important to research and evaluate insurance providers and plan administrators, consider their experience and expertise, review their track record in claims handling, assess their financial stability, and seek recommendations from other construction industry professionals. Working with a reputable broker can also be beneficial as they can provide expert advice and guidance throughout the insurance procurement process, assess project parameters, determine appropriate insurance type and coverage level, and offer access to multiple insurance providers for comparison.


Owner Controlled Insurance Program (OCIP)

In an Owner Controlled Insurance Program, the insurance coverage is obtained by either a property owner or a sponsor throughout the construction project taking place. If the goal was to completely rehabilitate a property for a period of six weeks, an OCIP policy would be utilized for the duration of that period.


Generally speaking, most of these policies offer the same basic level of coverage. They tend to include excess liability protection, employer's liability coverage, worker's compensation, and commercial general liability. Depending on the nature of the project and the unique types of concerns that are a factor, it could also be expanded to include contractor's pollution liability, builder's risk insurance, or even terrorism insurance should it be deemed necessary.

Pros of OCIP

When it comes to an OCIP, many consider the biggest benefit being that only one policy premium is required to guarantee all the aforementioned coverage for the duration of the project. Rather than being forced to keep up with and pay multiple partners, everything is consolidated under one proverbial roof. Obviously, this is a benefit primarily to the property owner.


Because everything is being provided by a single entity, this also offers the added advantage of giving property owners total control over things like administrative fees and other related costs. Some property owners with many projects running simultaneously even go as far as to get one OCIP for multiple sites. If you were renovating multiple schools within a school district, for example, naturally those might be spread out over a big geographic area. But because the projects are running simultaneously, one OCIP could cover all of them - further streamlining the administrative side of things and going a long way towards keeping costs down.


Cons of OCIP

The cons of OCIP include the increased administrative burden on the project owner, potential for higher insurance premiums due to increased project owner liability, limited flexibility in choosing insurance providers, additional coordination required among project participants, and possible confusion regarding coverage responsibilities and limits.


Contractor Controlled Insurance Program (CCIP)

Also commonly referred to as a Contractor Controlled Insurance Program, a CIP is a type of insurance that covers any project owner, the general contractor who has taken control of the project, and any subcontractors that are listed under a larger agreement. Those parties are protected from not only liability claims related to worker's compensation but also third-party general liability as well.


A helpful way to think of it might be like a pyramid, because a CCIP works from the "top-down" by design.


Pros of CCIP

Maybe the biggest benefit that a CCIP insurance policy brings with it is that it allows for small business entity participation. Remember it isn't

the agent showing graphs and charts related to CCIP on a tablet

the project owner or developer who is covered - subcontractors can easily be added as well.


This helps to bring about a much broader level of coverage than many people would be able to find on their own. It helps to significantly reduce (and often outright eliminate) any gaps in coverage that may exist. This goes a long way toward lowering insurance costs across the board. But when you also consider that having a CCIP policy in place can help significantly improve site safety, you're looking at what many consider to be the biggest advantage of all.


Cons of CCIP

  • Increased administrative burden on the contractor, requiring additional time and resources.
  • Potential for higher insurance premiums due to increased contractor liability.
  • Limited control over insurance coverage by subcontractors, potentially leading to coverage gaps if subcontractors have inadequate insurance.

Choosing Between OCIP & CCIP

One factor that may influence whether to go with an OCIP or a CCIP has to do with the number of subcontractors involved in the project at hand. Naturally, all those contractors will want to have a say - which can often mean an extended negotiation process. This will all occur after the final bids have been entered and could add to the cost of administration overall.

the agent and the business owners discussing the choice between ocip and ccip

Beyond that, remember that the policyholder is the one who will be responsible for paying the premiums on the policy. This is also true with regard to any required deductible. For some types of projects, it doesn't make sense for a contractor to take this upon themselves. An Owner Controlled Insurance Program will be more appropriate. For others - especially where a general contractor wants to stop covering liability across multiple projects that are happening concurrently - a CCIP is the way to go.


Let each project dictate which type of policy you invest in. Consider the unique scope and other requirements and work your way back to the type of policy that meets your needs. Don't default to one or the other just because you think you should or because that's what you did in the past.

How to Navigate OCIP and CCIP Successfully


As is true with most types of insurance, perhaps the best way to navigate either an OCIP or a CCIP policy successfully involves partnering with the right team of business insurance experts to begin with. You need someone who understands not only this type of insurance but the field you're in and even the project you're engaged in. The last thing you want to do is wind up with insufficient coverage when you need it the most and a policy of dedicated, passionate administrators can help make sure that doesn't happen.


If you'd like to find out more information about the ins and outs of OCIP insurance and CCIP insurance, or if you would like to talk about your own needs with a team of professionals in a bit more detail, please don't hesitate to contact BIS Benefits today.

OCIP & CCIP FAQs

  • How Do OCIP and CCIP Affect the Overall Cost of a Construction Project?

    OCIP and CCIP can have a significant impact on the overall cost of a construction project.


    With OCIP, potential cost savings may be achieved through bulk purchasing power and consolidated coverage. However, the project owner may face an increased administrative burden and potentially higher insurance premiums.


    CCIP, on the other hand, offers streamlined procurement and potentially reduced insurance markups for contractors. Nonetheless, contractors may also face increased administrative burden and higher insurance premiums.


    It is crucial to carefully consider the pros and cons of each program and work with a reputable broker to navigate the complexities and find the best fit for the project.


  • What Are the Potential Risks and Challenges Associated With Implementing an OCIP or CCIP?

    When implementing an OCIP or CCIP, there are potential risks and challenges to consider. These include:


    - Increased administrative burdens on either the project owner or contractor

    - Potential for higher insurance premiums due to increased liability

    - Limited flexibility in choosing insurance providers

    - Additional coordination required among project participants


    There may also be:


    - Confusion regarding coverage responsibilities and limits

    - Limited control over insurance coverage by subcontractors

    - Potential coverage gaps if subcontractors have inadequate insurance


    Careful evaluation of insurance providers and working with a reputable broker can help mitigate these risks and challenges.


  • How Does the Involvement of Subcontractors Impact the Effectiveness of an OCIP or CCIP?

    The involvement of subcontractors in an OCIP or CCIP can impact the effectiveness of the insurance program.


    In an OCIP, subcontractors may not have control over the insurance coverage, which can lead to potential coverage gaps if their insurance is inadequate.


    In a CCIP, subcontractors have limited control over the insurance coverage, and their insurance may not align with the project's overall risk management strategy.


    Effective coordination and communication among all project participants are crucial to ensure that subcontractors' insurance aligns with the program and mitigates potential risks.


  • What Factors Should Be Considered When Selecting an Insurance Provider or Plan Administrator for a Construction Project?

    When selecting an insurance provider or plan administrator for a construction project, several factors should be considered. These include the provider's experience and expertise in handling OCIP or CCIP policies, their track record in claims handling and customer satisfaction, and their financial stability.


    Seeking recommendations and references from other construction industry professionals can also be helpful. Additionally, engaging the services of a reputable brokerage firm can provide expert advice and access to multiple insurance providers, streamlining the procurement process and ensuring the best fit for the project.

What Employee Benefits Do Georgia Workers Want in 2025?

by Drew Holley • 17 January 2025
Key Insights on Employee Benefits for Small Businesses in Georgia Employee benefits play a pivotal role in attracting and retaining talent, particularly for small businesses striving to compete with larger corporations. BIS Benefits has partnered with Mployer Advisor to bring you an exclusive 2025 Employee Benefits Benchmarking Report, tailored specifically for businesses in the South Atlantic region with 25–49 employees. This blog highlights key findings from the report and how they can help you craft a competitive benefits strategy. Want to dive deeper? Download the full 2025 Employee Benefits Benchmarking Report to gain actionable insights and trends tailored for businesses like yours. Key Findings from the 2025 Employee Benefits Benchmarking Report 1. Medical Benefits: Affordability and Trends 76% of employers in the South Atlantic region offer medical benefits, with 63% of employees enrolling. On average, small businesses contribute $580 per month for single coverage and $707 for family coverage —in line with regional benchmarks. High-deductible health plans (HDHPs) with health savings accounts (HSAs) are gaining traction as cost-saving options. What this means for your business: Offering at least one affordable plan option with employer contributions around regional averages helps you stay competitive in the labor market. 2. Supplemental Benefits: A Strategic Edge Dental and vision benefits are offered by over 80% of employers in this cohort, with high employee enrollment rates of 98% and 93%, respectively. Life insurance payouts are commonly structured as multiples of earnings, with the majority of plans offering 1–2x salary coverage. Voluntary benefits such as critical illness and accident insurance are being increasingly adopted to attract talent without significant cost increases. Takeaway: Supplemental benefits can enhance your overall offering without breaking your budget. Highlight these options to potential hires to differentiate your package. 3. Retirement and Financial Benefits: Securing the Future 91% of employers offer defined contribution retirement plans (e.g., 401(k)), with 74% of employees participating. Employer matching contributions average between 4%–6% , a vital component in employee retention. Auto-enrollment and auto-escalation features are becoming standard, simplifying the process for employees and increasing participation. Action Step: Ensure your retirement plan includes competitive matching and user-friendly features like auto-enrollment to boost engagement. 4. Leave and Flexibility: Meeting Modern Expectations Consolidated leave programs (combining sick, vacation, and personal days) are offered by 69% of employers , reflecting a trend toward greater flexibility. Remote work options and flexible schedules are growing in popularity, with 40% of businesses offering work-from-home arrangements . How to stand out: Consider adding or expanding remote work policies and flexible scheduling to meet employee expectations in 2025. Why Download the 2025 Employee Benefits Benchmarking Report? This comprehensive report provides: Regional and national comparisons to help you understand how your benefits stack up. Detailed insights into cost-sharing, plan designs, and employee preferences. Actionable data on emerging trends like HDHPs, flexible leave policies, and wellness programs. The report equips Georgia small businesses with the knowledge needed to craft a competitive benefits package that aligns with employee needs and business goals. Download the Report Today Don’t miss out on the opportunity to gain insights that can transform your benefits strategy in 2025. Download the full report here by entering your email address and receive actionable data to help your business attract and retain top talent.

HDHPs: How High Deductible Health Plans Can Save Money for Employers and Employees

by Drew Holley • 6 January 2025
High Deductible Health Plans (HDHPs) are transforming how employers and employees manage healthcare costs. By offering lower premiums and pairing seamlessly with Health Savings Accounts (HSAs) , HDHPs provide a strategic way to save money while maintaining access to quality healthcare. In this article, we’ll explore how HDHPs work, their benefits for employers and employees, and how to maximize their potential. To learn more about the benefits of HDHPs and related options, visit our Group Benefits page . What Are HDHPs? HDHPs are health insurance plans characterized by higher deductibles and lower monthly premiums. These plans encourage smarter healthcare spending, as individuals must pay for medical expenses out-of-pocket until their deductible is met. A significant advantage of HDHPs is their compatibility with HSAs. HSAs allow employees to save pre-tax dollars for qualified medical expenses, reducing taxable income and providing a long-term financial safety net. Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year after year, making them an ideal savings tool. To better understand the differences between HSAs and FSAs, check out our detailed guides on Health Savings Accounts and Flexible Spending Accounts . The Employer Advantage: Cost Savings and Competitive Benefits Employers benefit significantly from HDHPs because they reduce overall premium costs while providing employees with greater flexibility. These plans can be part of a larger strategy to attract and retain top talent, especially when paired with proper education about HSAs. Offering HDHPs demonstrates a commitment to cost-effective, forward-thinking benefits management. Businesses can tailor these plans to align with workforce needs, ensuring employees feel supported while keeping costs under control. For help designing a comprehensive benefits package, visit our Group Benefits page for insights on tailoring solutions for your team. The Employee Advantage: Affordable and Flexible Coverage For employees, the main draw of HDHPs is their affordability. With lower premiums, employees can save on monthly healthcare costs while taking advantage of HSAs to manage out-of-pocket expenses. HSAs offer employees tax savings, flexibility, and long-term benefits, making them an excellent choice for those planning for future healthcare needs. This is especially valuable for individuals and families who don’t anticipate frequent medical expenses but want to ensure coverage for unexpected costs. Learn how to maximize your savings with our guide to Health Savings Accounts , a vital companion to any HDHP. Key Differences: HSAs vs. FSAs While both HSAs and FSAs offer tax advantages, they differ significantly in how funds are managed. HSAs allow for funds to roll over indefinitely and are owned by the employee, even if they change jobs. FSAs, on the other hand, are subject to the "use it or lose it" rule, meaning unspent funds may be forfeited at the end of the year. Employees using FSAs should familiarize themselves with rollover and grace period options to avoid losing money. To better understand how these accounts compare, check out our Flexible Spending Accounts overview . Industry Trends: HDHPs Are Gaining Momentum HDHPs are increasingly popular across various industries, from technology to manufacturing. Businesses see these plans as a way to manage rising healthcare costs while still offering competitive benefits. As employers look for cost-effective solutions, HDHPs stand out as a forward-thinking option that balances affordability with quality. Pairing HDHPs with educational resources ensures employees feel confident in navigating their healthcare choices. Key Takeaways For Employers: HDHPs lower premium costs while providing flexibility for employees. For Employees: When paired with HSAs, HDHPs offer significant tax advantages and long-term savings opportunities. For Everyone: Understanding the differences between HSAs and FSAs is essential for making informed benefits decisions. Whether you’re an employer or employee, HDHPs can be a game-changer for managing healthcare costs. To explore how these plans fit into your benefits strategy, visit our pages on Group Benefits , Health Savings Accounts , and Flexible Spending Accounts . 
Drew Holley and Jessie Couch Discussing HSA and FSA

FSA vs HSA | Which One is Best for your Georgia Employees?

by Drew Holley • 12 December 2024
Use It or Lose It? Demystifying FSAs and HSAs Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are popular options for managing healthcare expenses while enjoying some tax benefits. However, these two accounts differ significantly in how unused funds are handled at the end of the year. This difference can impact your financial planning and overall healthcare strategy. In this article, we'll delve into the "use it or lose it" concept, explore how it applies to FSAs, and compare it with HSAs, highlighting why it's important to understand these rules when making your benefits choices. For more information on HSAs and FSAs, watch the full episode of the BIS Podcast here or below. FSAs and the "Use It or Lose It" Rule FSAs have traditionally been governed by a "use it or lose it" rule. This means that any unspent funds in your account at the end of the year would be forfeited. This requirement made it crucial for employees to accurately estimate their healthcare costs and spend all allocated FSA funds before the year ended. However, since the introduction of the Affordable Care Act (ACA), things have changed. Today, many employers offer more flexibility with FSAs. Thanks to the ACA, employers may now allow employees to carry over a limited amount of unspent funds from one year to the next—originally $500, now adjusted for inflation to about $650. Alternatively, some employers may offer a grace period of up to two and a half months after the end of the plan year to use any remaining funds. It’s important to know what rules apply to your FSA so that you don’t leave any money on the table. To learn more about maximizing your benefits options, check out our guide on employee benefits strategy . HSAs: A Different Story Unlike FSAs, HSAs do not follow the "use it or lose it" rule. Funds contributed to an HSA remain in the account year after year, regardless of whether or not you use them. This is one of the key benefits of an HSA—you can build up savings over time to cover future medical expenses. Plus, the funds in an HSA are portable, meaning you take them with you if you change jobs or retire. This makes HSAs a valuable tool for long-term healthcare planning. If you're considering switching to a High Deductible Health Plan (HDHP) to become eligible for an HSA, it’s important to weigh the pros and cons. For more information about HDHPs and their compatibility with HSAs, check out our Health Savings Account service page . Making the Most of FSAs and HSAs Whether you choose an FSA or an HSA, it’s important to understand how to make the most of these accounts. For FSAs, knowing your employer's specific rules about rollover and grace periods can help you avoid losing funds. For HSAs, the focus should be on maximizing contributions, as the funds will continue to grow tax-free, providing a cushion for future medical needs. Both FSAs and HSAs can be used for a wide range of eligible expenses, including medical, dental, and vision care. If you want a comprehensive overview of your coverage options, our group health insurance page is a great resource. Additionally, if you work in a specialized industry like construction or technology, it's beneficial to explore options that are tailored to your needs. Industries like construction and technology have unique challenges that may impact the type of coverage you choose, including how you use tax-advantaged accounts like FSAs and HSAs. Key Takeaways About FSAs, HSAs, and the "Use It Or Lose It" Rule: FSAs : Historically governed by a "use it or lose it" rule, thanks to the ACA, employers may now allow employees to carry over a limited amount of unspent funds from one year to the next—originally $500, now adjusted for inflation to about $650. Be sure to understand your employer's policies. HSAs : Funds roll over year after year and are portable. HSAs offer significant long-term savings opportunities, particularly for those on HDHPs. Plan Carefully : Knowing how these accounts work can save you money and help you better prepare for healthcare costs now and in the future. To get more insights into how you can make the most of your employee benefits, visit our resources page and discover helpful tools to make informed decisions for yourself and your family.
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