Wrap-Up (OCIP/CCIP) vs Your Own Policy on Demolition Jobs

By Tamir Lerner | Demolition Insurance Pros | Updated 2026

On big demolition and construction projects, you will often be told the job is "wrapped." That single word changes how your insurance works, and misunderstanding it is one of the most expensive mistakes a demolition subcontractor can make. This article explains what wrap-ups are, what they cover, where the gaps hide, and what you must confirm before you demobilize your own policies.

What is a wrap-up?

A wrap-up, formally a controlled insurance program (CIP), is a single set of insurance policies that covers most or all of the contractors working on a specific project. Instead of every contractor bringing separate coverage, the sponsor buys one program that "wraps" everyone in. There are two main flavors:

• OCIP (Owner-Controlled Insurance Program) the project owner sponsors and controls the program.
• CCIP (Contractor-Controlled Insurance Program) the general contractor sponsors and controls it.

The insurance-education resource IRMI describes a wrap-up as a single insurance program providing coverage for all or most contractors and subcontractors on a large project. For background, see IRMI's definition of a wrap-up program.

Why owners and GCs use them

On a large demolition or redevelopment project, wrap-ups can offer real advantages to the sponsor: consolidated limits, uniform coverage across every trade, potential cost savings from bulk purchasing, and a coordinated approach to claims and safety. For high-hazard work like demolition, a wrap also lets the sponsor control that the pollution and liability limits are adequate rather than relying on each sub's individual program.

What a wrap typically covers

Coverage varies by program, but a typical demolition wrap-up covers enrolled contractors for work performed at the designated job site. Common inclusions:

The gaps subcontractors miss

Here is where demolition subs get burned. Enrollment in a wrap can lull a contractor into dropping or under-buying their own coverage, and then a claim lands in one of the uncovered zones.

1. Off-site exposures

Wraps almost always limit coverage to the designated project site. Your equipment yard, your shop, hauling debris on public roads, and any staging area off the project footprint typically fall outside the wrap. You need your own GL, auto, and equipment coverage for all of it.

2. Your equipment and tools

Excavators, high-reach machines, breakers, and attachments are yours to insure. Wrap-ups generally do not cover contractors equipment, so your inland marine policy must stay in force even on a wrapped job.

3. Commercial auto

Auto liability and physical damage are nearly always excluded from wraps. Your fleet needs its own commercial auto policy regardless of how many projects are wrapped.

4. Pollution scope

Some wraps include project pollution coverage and some do not. If the wrap excludes pollution, and demolition pollution exposure is enormous, you still need your own contractors pollution liability. Even when the wrap includes it, confirm the limits, the covered contaminants, and whether coverage extends to your off-site disposal.

5. Completed operations and the tail

Wrap-ups often provide completed operations coverage for a set number of years after project completion, but the length varies and it may be shorter than your state's statute of repose. Understand how long the wrap's tail runs and whether you need to backstop it with your own coverage.

What to verify before you rely on a wrap

Never assume. Before you treat a job as covered by the wrap, get answers in writing:

1. Get the wrap manual and the certificate. Read the actual coverage, limits, and exclusions, not the sales pitch.
2. Confirm which lines are wrapped. GL only? Workers' comp too? Pollution? Excess?
3. Confirm the site boundaries. Exactly what geography and operations count as "on-site."
4. Confirm the completed-operations tail. How many years, and does it match your exposure.
5. Understand the deductible / SIR and who is responsible for it.
6. Check the payroll and cost reporting requirements, wraps deduct insurance cost from your bid, and misreporting creates disputes.
7. Keep your own "practice" program active for everything the wrap does not touch.

Should you keep your own policy? Yes.

The answer is almost always to maintain your own full program and let the wrap sit on top for the enrolled project. Your own GL, auto, equipment, pollution, and umbrella protect your business across every job, every mile, and every piece of iron you own. The wrap protects one project. Treating the wrap as a replacement for your program is how a covered contractor ends up paying a claim out of pocket.

Demolition Insurance Pros is a division of Thrive Risk Management. This article is general information, not insurance, legal, or tax advice. Wrap-up terms vary widely by program; always review the actual wrap manual and policy documents. Coverage depends on the specific terms, conditions, and exclusions issued.