An Owner Controlled Insurance Program (OCIP), commonly called a wrap-up, is a single insurance program purchased by the project owner that covers all contractors and subcontractors working on a large construction project. When you enroll in an OCIP as a roofing contractor, the owner's program provides your general liability and often your workers compensation coverage for that specific project. Your own policies effectively step aside for the duration of that job.
Understanding how this works is critical because it directly affects your premiums, your reporting obligations, and your exposure if something goes wrong.
How Enrollment Works
The project owner or their insurance administrator will require you to complete an enrollment form before you mobilize to the site. You will need to provide your current insurance declarations, payroll estimates for the project, and sometimes three to five years of loss history. Once enrolled, you receive a certificate showing you are covered under the OCIP for that project only. Your own GL and workers comp policies should exclude the OCIP project payroll and revenue so you are not double-paying premiums.
Premium Credits You Should Receive
Because the OCIP covers your liability and workers comp exposure on that project, you are entitled to a premium credit on your own policies. This is commonly called an "OCIP credit" or "wrap-up credit." For roofing contractors, this credit typically ranges from 1.5% to 4% of your contract value, depending on your insurer and the project size. If you are working a $2 million roofing package on an OCIP project, you should see a credit of $30,000 to $80,000 reflected in reduced premiums on your own policy. If your broker is not securing this credit, you are overpaying.
What the OCIP Does Not Cover
An OCIP covers on-site operations only. Your off-site fabrication, material storage at your yard, transit to the project, and any work performed at other job sites remain on your own policies. Commercial auto is almost never included in an OCIP — you still need your own fleet coverage. Completed operations coverage under the OCIP typically extends for a set period after project completion, often three to six years. After that window closes, any claims revert to your own completed operations coverage, so you must maintain it continuously.
Audit and Reporting Obligations
OCIPs require meticulous payroll reporting, usually monthly. You must separate OCIP project payroll from your regular payroll with precision. Failure to report accurately can result in retroactive premium charges from the OCIP administrator and audit adjustments on your own policies. Roofing contractors who commingle payroll between OCIP and non-OCIP jobs routinely face five-figure audit surprises from both sides.
Risks to Watch For
The biggest risk is a coverage gap between the OCIP and your own program. If the OCIP has a higher deductible or self-insured retention than your own policy — sometimes $25,000 to $100,000 per occurrence on large projects — you bear that cost out of pocket on claims. Review the OCIP's SIR carefully before signing. Additionally, some OCIPs exclude certain subcontractor tiers or cap enrollment at specific contract values. If your roofing subcontract falls below the enrollment threshold (commonly $100,000), you may not qualify and will need your own coverage for that project.
Always have your broker review the OCIP manual and insurance specifications before you bid. The savings can be substantial on large projects, but only if your own program is adjusted correctly and you understand exactly where the OCIP coverage ends and your own begins.