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Controlled Insurance Program

Controlled Insurance Program (CIP)

Definition

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 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 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).

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