What is a wrap up? Contractor Controlled Insurance Program (CCIP) and/or Owner Controlled Insurance Program (OCIP).
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
If individual contractors have their own insurance, what is the need for a wrap up?
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.
As a subcontractor, can I benefit from a wrap up?
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:
• protection from rate increases during the project span
• coordinated claims and claim management
• single source, standardized safety programs
• higher umbrella limits
Who is CR Solutions? What is your relation with Sponsor and/or General Contractor on this project?
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.
What coverages and limits are included in the OCIP/CCIP?
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.
Certificate of Insurance
Why are you requesting a certificate of insurance when the wrap up should be providing me with a certificate? Why do I need to give you an offsite certificate of insurance?
The program sponsor requires that subcontractors submit proof of insurance in order to:
• evidence insurance coverages that are not provided by the wrap-up, including automobile liability insurance.
• to show that your company is insurable.
• verify that there is coverage in place for work being performed by your company away from this project site.
Why do you need a copy of certificate of insurance after my job is completed? I am done with my work and not going back to the jobsite!
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.
Enrollment / Exclusion
Do I have to participate in the Wrap Up? May I be excluded and/or excused from the wrap up if I want?
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.
What do I do with my subcontractor(s)? Do you need to enroll all my subcontractor(s)?
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.
Who is excluded?
In some cases, certain contractors and subcontractors may be excluded due to:
• the nature of their work
• not providing direct on-site labor
• short duration of work on-site
• small contract value
• some select trades in specific states
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.
Can I provide a hard copy of enrollment forms instead of the online enrollment?
Though we prefer that the on-line process be completed when possible, we can make hard copy forms available when necessary.
What is the wrap up enrollment package? What do I do with it?
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.
I need help with the insurance cost calculation.
Contact us, your broker, or watch this crash course on insurance credits:
How do I know what WC code to use? B/c we use many different WC codes.
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.
My excess liability is NOT 25%. Why am I being charged this? My excess liability is FLAT.
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.
How does my additional or refund insurance credit work?
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.
Will working under a Wrap Up cost me more?
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:
• your estimated payroll
• contract/bid amount
• insurance policy ratings pages
Why do I need to submit the payroll?
• Since Workers’ Comp premiums are usually based on payroll, the Wrap Up insurance carrier requires the reporting of all on-site labor to determine premium exposure.
• A subcontractor’s yearly payroll reports are also compared to the subcontractor’s yearly insurance claims to determine their Experience Modification Rate (EMR).
• Your reported payroll may be used to calculate your final insurance credit, if this program has a “true-up” (refer to your OCIP/CCIP Manual).
• Like any workers compensation carrier, the wrap up insurance carrier must report payroll for each policy issued to the state workers compensation board. Payroll Video
How do I get a username and password to report my payroll online?
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!
How can I view my past payroll entries?
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.
Can I find out the status of claim(s)? Can you provide us my company loss history information? (Paid, Reserve, Incurred)
Yes, contact us and we will provide you with a loss run for any OCIP/CCIP program we have enrolled you for.
Are there unfair advantages for contractors with poor loss experience versus those with good safety records?
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.
When can I get my final retention/payment?
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.
How does the close out process work?
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 form 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.
How does a wrap up affect my regular insurance plan?
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.
How can I be sure that I am not charged premium on my own insurance policies for work covered under a wrap-up?
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.