controlled insurance program (CIP)
A centralized insurance program under which one party procures insurance
on behalf of all (or most) parties performing work on a project or a site. Typically,
the coverages provided under a CIP include builders risk, commercial general
liability (CGL), workers compensation, and umbrella liability. CIPs are most commonly
used on single construction 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"). CIPs offer a number
of benefits including greater control of the coverage, potentially lower costs,
and reduced litigation. Can be owner controlled (OCIP) or contractor controlled
(CCIP). See also
Partner controlled insurance program.
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CRM IX.A