OCIPs, CCIPs, And Wrap-Up Insurance: The Lesser-Known Subrogation Obstacles

Workers’ compensation subrogation has another growing adversary—one that can slip in during the cover of night, gutting subrogation, and reimbursement rights, even after an insurance company or third-party administrator has spent thousands of dollars in recovery efforts.

It is known as an OCIP, CCIP, or CIP, acronyms which spell trouble for workers’ compensation carriers which zealously pursue recovery opportunities on behalf of their insureds.

In an effort to save money on construction projects, some insurers have begun to enter into arrangements with project owners or general contractors, by which the owner or general contractor obtains insurance – including workers’ compensation insurance – and thereafter requiring all subcontractors to be covered under the same policy, something known as a Consolidated Insurance Program (CIP).

A CIP is also commonly referred to as “wrap-up insurance.” This shouldn’t be conflated with “Wrap-Around Insurance” programs; insurance policies which “wrap around” because they are set up in conjunction with an Employment Practices Liability Insurance (EPLI) policy and provide punitive damage coverage.