What does Controlled Insurance Program mean? Read on to discover the definition & meaning of the term Controlled Insurance Program - to help you better understand the language used in insurance policies.
Controlled Insurance Program
A centralized insurance program under which one party procures insurance on behalf of all (or most) parties performing work on a construction project or on a specific site. Commonly referred to as "wrap-ups," CIPs are most commonly used on single projects, but other uses include contract maintenance on a large plant or facility (see "Maintenance Wrap-Up") or on an ongoing basis for multiple construction projects (see "Rolling Wrap-Up"). Typically, the coverages provided under a CIP include builders risk (for construction wrap-ups), commercial general liability (CGL), workers compensation, and umbrella liability. CIPs offer a number of benefits, including greater control of the scope of coverage, potentially lower project insurance costs, and reduced litigation. CIPs can be purchased by the owner (OCIP) or contractor (CCIP) or a combination of participating parties.
We hope the you have a better understanding of the meaning of Controlled Insurance Program.