Key Elements of CCIP (Contractor-controlled Insurance Program)
Financial Risk Identification and Management
Financial risk is part of any CCIP. As part of the financial risk identification and management process:
- The contractor takes on the project’s financial risk
- The owners can close their books once the project is complete, as they are not exposed to the risk of claims
Strategic Planning and Program Selection
Insurance agents, carriers, and the sponsor play a central role in ensuring that the CCIP is designed to suit the project’s insurance needs. This involves:
- Negotiation of the terms and limits of the coverage
- The contractor sponsors the program – the first-name insured decides on who gets enlisted in the program
- The contractor is responsible for the program’s administration and the contractual risk transfer across all documents
Administrative Work
An effective Administration team is essential for a CCIP’s success. In a standard CCIP:
- The administration team includes the agent, contractor, carrier, and administrator
- The contractor and carrier work together to determine the risk program’s success
- Documents, such as subcontracts and CCIP manual, ensure correct implementation of the program
Claims Management
Even when you have safety precautions and protocols in place, you may still have to deal with claims. Therefore, you should ensure your CCIP addresses all of the claim management needs. Under CCIP:
- The contractor is responsible for the claims made
- Most contractors have crisis management protocols and return-to-work programs in place
- The contractor can be held liable for 5 to 10 years after completion of the project
What Our CCIP at Modab Insurance Services Can Do for You
A well-crafted CCIP eliminates the need for each contractor and subcontractor to purchase their own insurance coverage for the project they are working on. It also assures the general contractor that every enlisted subcontractor is sufficiently insured. At Modab Insurance Services, our customized contractor-controlled insurance programs offer the following benefits:
- Broader coverage- Provides extra coverage for the general contractor in case the individual contractors’ coverage is not enough.
- Focus on safety- CCIPs are loss-sensitive; that is, insurance costs are hinged on claims-related activity. This compels the general contractor to create an effective centralized and comprehensive program to ensure greater safety at work.
- Greater savings- With effective safety programs in place, the CCIP can enable the general contractor to reduce their insurance costs significantly.
- Better claims management- CCIPs streamline the claims process. The general contractor handles all of the claims through their insurance carrier, and thus they do not need to deal with multiple insurers, defendants, and lawyers with competing interests.
At Modab Insurance Services, we work closely with several reputable carriers to help you find your perfect fit. Contact us today to get started on your personalized CCIP that will address all of your unique insurance needs.
