Find out more about the types and purposes of Controlled Insurance Programs.

CIPs are Controlled Insurance Programs.
A Controlled Insurance Program is a specialized type of policy that covers an entire project and everyone involved in it if they decide to join the insurance program.
There are two types: Owner Controlled Insurance Programs and Contractor Controlled Insurance Programs.
They were created during the 1940s during the post world war two industrial boom.
And were a result of consumer demand and the birth of the suburbs.
One of the first projects to utilize a CIP was the United Nations Building Project.
The benefits of using a Controlled Insurance Program include:
Number One: More coverage for a lower rate.
This means a lower rate per hundred or per thousand in premium because you’re requiring and purchasing much larger limits for the project.
Number Two: Controlled insurance programs streamline the claims handling process, which is a huge benefit for a project using many different vendors and subcontractors.
Having one place from which to administer claims is very beneficial.
Number Three: They are more efficient to manage as long as you have the administrative power to facilitate the entire policy for everyone involved.
Things to evaluate when considering a CIP are::
Number One: They are used primarily for larger projects so they’re not for your typical home remodels or commercial TI projects.
Number Two: They require heavy admin time and upfront costs.
Number Three: They come with a higher self insured retention or deductible limit.
While Controlled insurance programs generally cover the general liability, you can also build in other lines of coverage, such as workers comp, professional liability, pollution liability, excess liability, etc.
To summarize, owner controlled insurance programs and contractor controlled insurance programs can both benefit their respective controller as long as there is sufficient administrative back office to support the policy and project.
Please contact us with further questions on this or any other risk management topic. We will see you again soon!