Contractor Controlled Insurance Program (CCIP): Cost & Providers

Cody Cromwell
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Contractor Controlled Insurance Program Providers

A contractor-controlled insurance program (CCIP or plumbers insurance) is an easy way to earn additional income and it is required to be in place by most state and federal contractors. CCIPs are the best way to cover your business and personal assets. If you are in charge of a construction project, there is a good chance that you need an insurance provider that will allow you to control the insurance program. In general, you need to ensure that your project is insured for ALL your business assets and your personal assets.

For Contractors, Universal policies can offer the appropriate coverage for a variety of businesses. Putting the CCIP in place is an easy and hassle-free process. Once your business is enrolled in our program, you will have a choice from a variety of insurance policies and business insurance from the top insurance agents in the industry.

Providers Universal Insurance is a preferred insurance agent for many in the insurance community. Our insurance agents are there to help you select the right insurance policy for your business.

Universal Insurance is one of the largest fully-insured and professional risk management insurance agencies in the industry.Professional, knowledgeable staff are available at all times to provide personal service to our agents.Universal has earned a reputation as a company at the forefront of insurance renewal and is a preferred insurance agent for many insurance carriers.

Top CCIP Providers

The Contractor Controlled Insurance Plan (CCIP), a popular form of Contractor Remediation Insurance (CRI), can protect your business from the financial damages caused by environmental liability claims, generally referred to as tort or cause of action.

Contractor controlled insurance is delivered by a third party administrator (TPA). The contract provides the insurance coverage and clearly defines your business’s financial responsibility.

This business insurance plan was introduced in response to the heavy regulations and punitive (financial) damages imposed on the construction industry. Contractor controlled insurance starts to protect the business once the construction project is underway. It can be used for all types of construction projects including demolition, site and civil infrastructure work, tenant improvement construction, water and sewer lines, and electrical work.

The key difference between other types of insurance and the Contractor Controlled Insurance Program (CCIP) is that with CCIP the insurance company sets the insurance fees on claims, providing the contractor with a fixed monthly fee, while most third party liability policies are based on a policyholder’s retention of premiums, with the construction insurance premiums increasing if claims are paid.

The CCIP program offers insurance on three common environmental liability claims: odors, asbestos, and mold. Other environmental technologies, like hydro-fracking, have added technologies that can be included with the contract to protect the contractor (such as water monitoring).



In the last few years, Alliant Insurance Company, LLC, Prudential Insurance Company, a subsidiary of PPR Insurance Group and BLUESHOES have developed programs that cover construction workers who have claims as a result of an on-the-job accident for contractor controlled insurance. The infamous quote "All work and no play makes Jack a dull boy" is certainly true for construction workers. That is why Alliant, Prudential and BLUESHOES have established some programs that will cover workers in certain controlled conditions.

What are Contractor Controlled Conditions?

The foundation involved with any contract is the contract language itself. Contract language, or provisions, can create liability for the contractor. When a contractor is certified as a participant in the Alliant, Prudential and BLUESHOES CCIP, he or she agrees to abide by the provisions of the program. Alliant, Prudential and BLUESHOES have adopted a set of conditions that they consider to be infrequent or unusual and that are not more common than the ordinary consequences of the work.



And a few other insurers have created a program called Contractor Controlled Insurance Program (CCIP) which allows contractors to manage their commercial insurance costs through the use of a program named a contractor‒s management network (CMN). It’s a comprehensive insurance program that addresses every risk a contractor could ever need throughout the course of a project.

Once a contractor registers into the program, the insurer will perform agreed upon due diligence to verify that a certain level of expertise is available in your organization.

The insurers have agreed to perform these due diligence based on certain pre-set criteria – not on the basis of the insurance product being selected (Communication Network).

The insurers will perform these due diligence online or through their in-house processes, and the time it takes to perform these due diligence varies based on whether or not the insurer wants to wait until they receive the information on your forms.

Depending on the insurer, the information they will perform due diligence on may or may not include the following:

  • A plan of operations
  • A diagram showing your project team—
  • A diagram of the project
  • A list of subcontracts
  • A list of suppliers
  • A list of key employees
  • A list of third party individuals
  • A list of locations
  • A list of people for each location


Chubb Servicing is one of the most well-known choices of homeowners insurance company, known for providing a variety of coverage options that suit the needs of just about any household, and even small businesses. Chubb Servicing has a market share of 22%, which is the second largest in the industry. Chubb Servicing tends to be on the higher end of the price scale, with premiums running between 15%-20%. Chubb Servicing is backed by numerous expert organizations, and offers professional and responsive customer service. In addition to home insurance, Chubb Servicing also offers life insurance, energy insurance, retirement insurance, and business insurance.

What Is A Contractor Controlled Insurance Program

How Are They Handeled and How Is This Helps a Contractor?

A Contractor Controlled Insurance Program or CCIP is an insurance coverage that's provided to contractors by their clients.

CCIP covers the contractor's expense when a deductible is applied to a claim. CCIPs are managed by a program administrator (often an agent) or insurance company who make the decision as to whether claims are covered. Programs may have a set limit for how much a contractor can be reimbursed.

CCIPs are created and administered by insurance carriers who contract with contractors (often through their agent). CCIPs are rights-based, meaning that they are provided as a way to protect the insurance carrier from financial risk, not the contractors. CCIPs generally provide coverage for the following types of damage or loss:

  • Contractor's Tools and Materials
  • HVAC systems and equipment replacement
  • Labor and installation costs for the project
  • Construction costs (this means things that were used during the construction, such as material, supplies, overhead, and profit
  • The results of any delay caused by a claim

"Owning a home is not a pre-requisite for coverage under CCIP. The premises owner may limit the risk they are exposed to to the limit of the CCIP."

What CCIP Insurance Covers

All contractors in Ontario who are under contract must be licensed. Licence holders are required to carry liability insurance to cover the costs of any claims that arise from the contract work. Costs incurred due to bodily injury and/or property damage to third parties. What your liability policy does not cover If you subcontract work to other contractors and they are not licensed – the liability insurance does not cover their debts.

If you are using Industrial insured labourers (purchasing the invoices).

If you are using building materials of questionable value.

If your subcontractors have bad credit or if their applications are missing or incomplete.

If you sign an agreement for a multi-contractor project where you are not the contractor managing the work. For example, if you are just one of multiple sub-contractors on the same job.

If the contractor doesn’t demonstrate that they have enough money to pay a claim.

If the contractor does not have enough coverage if they are unable to pay.

If the contractor has cut corners and you believe that there has been an inadequate job.

If you subcontract to a Gritter, as this service is not covered by your Gritter Contractor Insurance Plan.

If you are involved in the construction of a single-family residence.

If any of the contractor’s materials that you are using are stolen.

Pros of CCIP

CCIP is a new insurance option for contractors in Florida. CCIP offers coverage for contractors who have completed projects in Florida and must send all of their invoices to Florida. CCIP can be very useful in mitigating risk and filling gaps in commercial insurance.

There are certain aspects of CCIP that make it attractive, and the benefits do outweigh the risks. It is important to understand what that risk is before signing up.

Cons of CCIP

Pyramid of Coverage

Avoid the Many Pyramid of Coverage Pitfalls and Stick to the Basics. The concepts discussed in a relatively quick overview in the best interest of the consumer to pick the minimum of coverage, there are a lot of pitfalls.

Therefore, it is wise to pick a culprit who is good at the insurance policy to minimize the liability insurance and/or they give a discount for your insurance policy that you have the right to get.

You should not just pay a lot less than the current market to pick up the policy or an insurance policy with coverage that you can afford to set the coverage for a lot more comprehensive insurance.

Many people say that there are no insurance, so they bought the policy to protect their property is a waste of time or money.

However, it is a myth to think so.

Think about a basic policy it is one and you are very surprised that it is usually not inexpensive and may be able to afford a homeowners’ insurance.

So, which is it cheaper to take insurance of the business insurance policy or a fire for the home insurance. When you talk about the cost?

Example of CCIP Coverage

What CCIP Doesn’t Cover

Contractor Controlled Insurance Program (CCIP) is a self-insured commercial specialty insurance program designed to cover contractors of record for their commercial general liability (CGL), work comp, workers’ compensation, errors and omissions, and commercial automobile coverage.

A self-funded insurance program, CCIP participation is voluntary. All members pay a monthly premium to cover losses and provide coverage to the member’s subcontractors and business associates. If a member does not select to participate, that member’s business may not qualify for certain state and federal safety and health programs.

Membership in CCIP is based on a paid in-full fee and contractual requirement placed on each of the members’ subcontractors (like one would have with a traditional insurance company). CCIP does not accept third-party complaints. Rather, it has specially trained employees who investigate contractor accidents, injuries, and workers’ compensation claims and pursue recovery through the court system.

Contractor Controlled Insurance Program Costs

The CCIP is a self-insurance program run by the construction industry to provide workers compensation coverage to contractors. The Program is often misunderstood by C corporations and owner-operators and is frequently thought to be a direct benefit via payroll deduction. A direct payroll deduction is the sole method of payment and is not available to other forms of compensation.

The CCIP is designed to benefit the industry providing the coverage, and as such, the premiums are not based on a tax exempt entity.

The Program is an alternative to traditional insurance, which takes a commission on premium costs, with the added benefit of no audited claims for employers.

There are no benefit limits and no waiting period.

The Program generally has lower administrative costs than traditional insurance.

There are three plans to choose from. Each plan has different administrative and fund benefits.

There is no board that manages the CCIP. The Board is elected by members of the Program.

Premium Credits in CCIP

Premium credits in a contractor controlled insurance program are basically time credits.

You receive time credits based on:

  • the number of hours you work,
  • the number of hours your subcontractors work,
  • the number of days your project was delayed, or

The number of the days you did not complete your work.

As an example, let’s say you repair a roof for 10 hours. If for some reason you had to stop due to a rainstorm, the insurance company will take your 10 hours and give you 10 hours back as a premium credit.

If you normally complete projects within 5 days and the storms delay your project by 10 days, you’ll be given:

  • 5 days of premium credits (10-5=5),
  • 10 days of discounted premiums (10-5=5), or

A 50/50 split of 15 days of premium credits and 15 days of discounted premiums.

Premium credits in CCIP are insurance benefits that you receive in exchange for more labor, higher costs, and greater risk transfer to the policyholder. Some premium credits are applied directly to your insurance premiums while others are only applied if your business is in good standing.

Specifically, the premium credits that apply directly to your premiums are items such as:

  • customer-specific weather,
  • damage-specific weather,

Who CCIP Insurance Is Right For

CCIP and Other Business Insurance

CCIP has become a hot topic in the insurance industry ever since many home owners started using this concept to protect their businesses. With this program, contractors hire specialists to do the simple tasks that they’re unable to get to, like filing claims.

As of now, there is no government oversight of CCIP. For that reason, there are many things to consider before choosing this company and this option. You may even want to reconsider your CCIP program since there are many other ways to keep your business protected.

Before we get into the details of how CCIP works, let’s go over a quick explanation of business insurance for contractors first.

Business insurance is a type of insurance that protects the owner of a business from any injuries and damages caused by negligence. In addition, it protects them against various government regulations and provides a financial safety net for any unforeseen events. Business owners need to carry business insurance in order to run their business legally.

Insurance for contractors, known as contractor’s and subcontractor’s insurance, goes hand in hand with this type of insurance. It covers the hard working people in the building industry who put their faith and trust in contractors and subcontractors.

Project managers and different contractors are required to carry C&S insurance in order to ensure the protection of their clients.

Builders Risk Insurance

Commercial General Liability Insurance

Liability insurance is one of the most common kinds of insurance, as it is an assurance to protect an organization against financial loss or injury due to the negligence or intentional acts of any third party.

Liability insurance is particularly important for the construction industry, as construction sites and projects are frequently exposed to various kinds of hazards and potential liability claims. This risk generally stems from the nature of the large-scale development and construction that is undertaken by contractors in the construction industry. Accordingly, construction projects usually include significant amounts of liability insurance to protect the contractor from these kinds of claims.

Insuring the contractor against any potential liability claims is known as contractor liability insurance. Common types of contractor liability insurance include general liability, workers' compensation insurance, and accident insurance (general and employer’s liability).

Let’s take a look at the various kinds and types of contractor liability insurance.

Commercial Property Insurance

If you plan on doing any type of commercial or residential construction, whether it’s a renovation, addition, or repair, you should discuss insurance coverage issues with your contractor.

The contractor can provide you with at least three insurance quotes, so let him/her know what you want to ensure maximum protection of your investment .

The contractor will also help you select the type of coverage you need.

Contractors will also be aware of programs that the contractor controlled insurance program (CCIP) provider who can provide the coverage you desire .

Depending on the size of the project, the renovation or construction could create disruption in your business operations, even if it’s just for a few days. You will need to implement a contingency plan to minimize the impact.

Another important aspect to consider is your CCIP insurance provider’s claims process. Only experienced companies have a track record of handling claims when the need arises. For homeowners or contractors, this is a major consideration when deciding on an insurance provider.

The CCIP provider you select will have many moving parts, including a claims department and a group of underwriting insurance agents. So make sure the provider you are considering has a good Claims department. The claims department must be well-staffed and adequately trained to handle claims.

Workers’ Compensation Insurance


Workers’ Compensation is an insurance policy that the employer is required to carry.

The goal of workers’ compensation is to provide benefits to employees who have suffered a work-related injury or illness. To receive these benefits, in order to legally receive workers’ compensation benefits, an injured party needs to file a workers’ compensation claim.

Insurance companies offer workers’ compensation insurance coverage for employers. Employees are not required to carry or purchase workers’ compensation insurance. An injured party must prove to the insurance company that he or she has a work-related injury or illness.

The injured party then makes a claim to the insurance company, and the insurance company determines whether the injury or illness was job related or not. The insurer then decides how much to pay to cover the injured party’s medical needs.

The terms and conditions of workers’ compensation insurance coverage depend on the type of work an employee performs. If the insurance company deems the employee to be too risky, they may deny the injured party’s claim.

Workers’ compensation coverage also covers a variety of injuries or illnesses, such as a broken bone, a concussion, loss of hearing, or a trip to the emergency room, which does not have cancerous cells.

Commercial Umbrella Insurance

Umbrella insurance protects you and your family by nipping unwanted weather problems in the bud. Just like your home insurance policy, umbrella coverage comes in different tiers. The higher the coverage rate, the more your insurance company is willing to pay if you’ve been struck by a lawsuit or calamity, such as the loss of your business or the destruction of your property following a natural disaster.

Umbrella coverage also comes in two types, commercial and non-commercial. Unfortunately, the coverage types are often confused, so it’s important to understand the difference.

Non-Commercial Umbrella Insurance

Non-commercial umbrella insurance is the type you’ll want if you pursue a policy for yourself or to protect your large business. It’s a one-per-policy-for-one-palce coverage with the same limits as your general business policy for which you’re already paying a premium. Non-commercial umbrella coverage applies to suits, accidents, emergencies, or calamities that take place while your business is in operation.

Non-commercial umbrella insurance is also called business owners insurance or a business owners policy.

Tips When Getting CCIP Insurance

If you need contractor insurance, a cost controlled insurance program (CCIP) may be a great option if you have the budget. CCIPs are a long-term, low cost insurance program that is controlled by the subcontractor/tradesperson. There are different types of CCIPs, including building commissioning insurance and material control programs. Building commissioning insurance allows the contractor to handle all aspects of the job before they begin, while material control programs (MCPs) work by giving the supplier better control over the costs.

CCIPs offer the user controlled exposure in terms of money paid back, so in layman’s terms that means you have the opportunity to have the contractor control the costs instead of you. CCIPs are a great way to save money and can have some great benefits.


Are you ready to get started? Of course, you need to be! CCIPs are not for the weak of heart, nor do they suit most people. You must be brave, resilient, independent and dare I say, stubborn. That’s because you need to do all the work for the insurance program.

1.Solidify Subcontractors’ Contingent Contracts

Contractors typically make their subcontractors that work on a job produce a "Contingent Contract" for the client or building buyer. The contract is an "Opened Agreement" which means that all the terms are spelled out. This provides the most flexibility for the contractor since he or she can make changes without needing the subcontractor to sign a new long-term contract. The biggest challenge facing the contractor is the size and scope of the project. Not all subcontractors are paid on their completed work and not all that make progress payments will be paid on a percentage basis. In some cases the contractor will be the first to get paid.

Every time a subcontractor makes progress payments on a job that is confusing to your clients. The purpose behind this risk is that they get paid for their work, even if the job is not completed, but the risk is that if the job slips, you will not get paid.

Despite all the risk, if you are working in a tier system using the first tier subcontractor, it is better for the subcontractor to pay their costs before you do so that you can order materials, or cover your own work-in-progress you know for sure that you will get paid with no risk to the client.

2.Confirm the Period of Indemnity for CCIP Policies

A normal commercial insurance policy will last for a certain amount of time. This period of indemnity used to help an insurance company reduce the risk of a loss. For example, an insurance policy which will last for 5 years will have a much lower risk of a loss than a policy which lasts for 12 months.

If you buy a commercial insurance policy through a licensed insurance agent or broker, you can rest assured that the length of indemnity is the standard one allowed under the Insurance Act or the commercial policy.

If you are buying a commercial insurance policy through an unregulated form of insurance, such as a contractor insurance program (CCIP), you need to confirm the period of indemnity with the insurance company.

Why do Insurance Companies Issue Only Contractor Insurance Programs?

Contractor Insurance programs is a type of commercial insurance with a focus on risk management. Insurance companies may be more aware of various risks that contractors run into, particularly what kind of risks they would need an insurance policy for.

For contractors, exposure to many risks can be expensive and result in increased insurance premiums. In response, insurance companies have developed these contractor insurance policies to help protect contractors from unplanned disasters that can lead to significant costs.

Review All Insurance Coverage Needs

It’s important to review all insurance policies you own and ask your insurance agent about any coverage gaps you may have. Even if you already have all the coverages you need, come up with a written list of all your insurance needs to gain a better understanding of your coverage policies.

Take a moment to consider all insurances that may cover your home and personal property needs – from property owners’ to liability, homeowners’ to renter’s, as well as all kinds of home insurance policies.

CCIP Frequently Asked Questions (FAQs)

Founded in 1911, Farmers Insurance Group of Companies is the Nation's largest general franchise insurer with a presence in all 50 states and the District of Columbia. Farmers offers a variety of insurances, including coverage that gives commercial property owners the opportunity for deductibles to be paid from pool insurance escrow, reducing business interruption costs. As a leading provider of commercial insurance, Farmers offers a variety of coverage options for both new and already established contractors, as well as employers and owners of existing properties.

What is a period of indemnity?

An insurer would release a claim in a contract of indemnity if, in return for higher premiums, the contractor promised to reduce the cost of claims.

During a specified time period after the contract is signed, the insurer has the right to furnish to the client a period of indemnity. An insurer recovering from a contractor through the total payment of a claim may recover the monies it advanced in proportion to the period of indemnity given by the contractor.

In some contracts of indemnity, the total premium or an aggregate sum may become due from the contractor, rather than a specific sum for the period of indemnity.

A period of indemnity may be set during the actual time the contract is being performed, or on a prospective basis, in which case the period is measured from the date that the contract is signed until the date it expires.

What Is a construction insurance policy?

A construction insurance policy is a type of coverage that covers loss or damage caused to physical property during the course of a construction project.

This coverage can be purchased by a general insuring contractor and is instrumental in protecting both the construction company and its employees. Construction insurance policies come in all types and structures, which are tailored to suit the unique needs of each construction company.

Even though it is a commercial insurance plan, construction insurance plans have some similarities with homeowners insurance. For instance, the premium on construction insurance is based on construction activity you conduct or the amount of loss or damage you could potentially experience each year. Insurance policies can be taken out for both the construction company as a whole and its employees individually. Some insurance companies provide insurance for contractors, subcontractors, and employees while others only provide insurance for the construction company.

Increasingly, many construction companies are using construction insurance policies to cover their employees. For instance, if a general insuring contractor is not insuring his employees, he will have to pay a high amount of compensation in case one of them loses a limb or is injured following an accident. Another insurance option is to choose separate insurance plans for each of the employee’s individual insurance plans so that there is insurance coverage for the risks the individual employees are taking or fears they are potentially exposing themselves to.

Is there a difference between CCIP vs OCIP?

The Controlled Contractor Insurance Program (CCIP) appears similar to the Owner Controlled Insurance Program (OCIP). Why would a contractor need owner controlled insurance coverage?

Say you are working for an owner that doesn't want to deal with insurance. For example, they have a lot of projects going on and can't be tied up with filling out forms.

They feel more comfortable with the contractor controlling the insurance. If they have a large project, they will contact the insurance company, sign an insurance addendum, and the contractor will be in charge of the insurance.

While the owner is still in charge of insuring, they aren't as hands-on as they would be if they were handling it themselves. All outgoing checks, verification of evidence, and payments have to be handled by the contractor.

The owner/contractor relationship can be beneficial to both parties.

In contrast, the Owner Controlled Insurance Program (OCIP) is more traditional in that owner retains the insurance while insurance is purchased through a licensed insurance company.

Bottom Line

You get the best service for your money if you pay a month's worth of home insurance up front.

If every local contractor and Homeowner’s Insurance Agency provides a similar program, why would anyone enroll with a different contractor’s insurance company? Here’s a simple explanation.

I’ve found over the years that the cost of insurance is influenced as much by the type of coverage as much as by the amount of insurance. In this study, I rated each provider as an A through F plus or minus. I then drew a line at the mean cost for each type of coverage. I then segmented each of the providers into A, B, C, D, or F groups. Next, I considered the financial ratio of the providers. Did I imagine that the better the provider was, the more they would charge? The answer would be yes. Therefore, the better the provider was, the more likely they were to be greedy. On the other hand, the only way to help lower the price of coverage was to allow more opportunity for the provider to have a more competitive advantage.

The following chart shows the average of the five cost categories, give or take a few cents. These are the average amounts charged by each provider…beware the mayo.