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.