What Is a Contractor Controlled Insurance Program?

A contractor controlled insurance program is a type of “wrap-up” policy in which all participants involved in a building project are covered by a single policy. The policy sponsor is for this program is typically the general contractor for the project. The policy provides coverage for the project owner as well as contractors and subcontractors that are working on the job site.

Wrap-up Policies

A contractor controlled insurance program is a type of umbrella insurance policy. The policy names all project entities for general liability. It sometimes identifies workers compensation risks that may be present. A wrap-up policy may also include occurrence coverage for defects in construction claims for a specified number of years.


A contractor controlled insurance program will usually cover the general liability exposure that can exist while working on a construction project. The form for commercial general liability is used to include bodily injury and property damages that may occur during construction. Injuries on the job site are also covered if workers compensation coverage is included.


One benefit of a contractor controlled insurance program is that the cost of the policy is going to be less than purchasing individual polices for all entities involved in a project. A contractor controlled insurance program can also benefit small and minority subcontractors because they will not have to purchase a separate insurance policy to work on the project.


Many contractors and subcontractors provide or pay for their own insurance when working a project. The cost is passed onto the owners or sponsors of the project in their bid. A contractor controlled insurance program saves money for the sponsor because this cost will not be a factor in the bids that are received. Claims are also streamlined because there is only one policy for an insurance carrier to process.


A contractor controlled insurance program does have some disadvantages. One disadvantage for contractors or subcontractors is that they may already have an insurance program in place. Many contractors and subcontractors factor the cost of insurance with their bid. This cost cannot be included when a contractor controlled insurance program is in place. As a result the total value of the contract is going to be lower for the contractor or subcontractor.


About the Author

Cameron Easey has over 15 years customer service experience, with eight of those years in the insurance industry. He has earned various designations from organizations like the Insurance Institute of America and LOMA. Easey earned his Bachelor of Arts degree in political science and history from Western Michigan University.