Consolidated Insurance Programs (CIPs). Known typically as Owner Controlled or Contractor Controlled Insurance Programs, “Wrap-up” programs continue to be widely used by the construction industry in Texas. While possibly a money-saver for the Owner, currently there are no standards governing CIPs and their administration. Most subcontractors working under a CIP on a construction project have not been provided information to allow them to compare their liability coverage under a CIP with their own insurance program. Legislation should be passed that, at a minimum, would require information on coverages and limits of a CIP be provided in writing to subcontractors before bidding on and before signing a contract for a construction project.
The Consolidated Insurance Program bill for the 84th Texas Legislature has been filed. Read House Bill 1206, or SB 1081 for more information.
For Talking Points on the Consolidated Insurance Programs (Owner or Contractor Controlled Insurance Programs) for communication with legislators and their staff, click HERE.
For the STATUS of Consolidated Insurance Programs, visit http://www.capitol.state.tx.us/ Enter the bill number in the box.
For Issue Brief on Consolidated Insurance Programs, click HERE.
In addition, click on the following links to view drafts of legislation filed in previous legislative sessions. Read 2009 CIP Legislation. Read 2007 CIP Legislation.
For additional background information on CIPs, click on the links below.
Risk Transfer: 30 Questions for Consolidated Insurance Programs
OCIPs – Look Before You Leap – A Contractor’s Guide to Owner Controlled Insurance Programs
In 2013, the state of Florida enacted a law regulating CIPs for public construction projects. Some of the issues addressed in the law included requiring a minimum of 10 years completed operations coverage, requiring the bid specifications for a project to clearly specify insurance coverage provided under the program, and allowing a contractor or subcontractor to purchase additional insurance coverage. Below is the link to the Florida statute.