An Owner Controlled Insurance Program (OCIP), or “wrap-up,” consolidates coverage for the owner, general contractor, and enrolled subcontractors into a single program the owner sponsors. Owner’s Interest, by contrast, is a standalone policy covering only the owner’s interest. The choice is largely about scale and control.
The tradeoffs
A wrap-up can offer cost efficiency and coverage certainty across a large project, and it minimizes cross-litigation between stakeholders because everyone shares one program. But it carries a heavy administrative burden — enrollment, payroll reporting, claims, and safety coordination — and the owner, as sponsor, takes on deductible and long-term collateral obligations that can extend well past completion.
Owner’s Interest is far simpler: no enrollment, no collateral, no long-term program obligations. For many owners — especially on single projects — that simplicity, combined with completed-operations protection, is the more practical path. Larger, more complex programs may still favor a wrap-up.