Streamline Construction Site Coverage with a CIP

Controlled Insurance Programs offer tailored, complete coverage for complex projects

Sep 11, 2013, 12:41 ET from Lockton

KANSAS CITY, Mo., Sept. 11, 2013 /PRNewswire/ -- Construction projects can be complex operations requiring many types of insurance coverage across several tiers of subcontractors. By using a Controlled Insurance Program (CIP), construction managers, general contractors, and owners can streamline coverage, making sure all involved parties have adequate coverage.


According to a new report by Lockton, there are many advantages to using a CIP, including

  • The sponsor and all enrolled contractors/subcontractors are named insureds, not additional insureds
  • The sponsor controls the implemented safety program for the entire project site, creating a safer work environment
  • All enrolled contractor/subcontractor claims are paid by one carrier, avoiding disputes between carriers

The report, written by Lockton's Colleen Aegerter, is entitled Ensuring Adequate Construction Site Coverage through a Controlled Insurance Program.

"As contractual risk transfer becomes less reliable and the ISO revisions to commercial general liability policy forms and endorsements create new challenges, a Controlled Insurance Program offers a practical way to tailor coverage to meet the needs of a specific site or project," said Aegerter.

Under a CIP, all enrolled contractors or subcontractors at the project site receive general liability, excess and, in many cases, workers' compensation coverage; a CIP can cover a single site, typically large project, or multiple sites.

Lockton has a fully-dedicated CIP group with broad experience in commercial and residential projects, from single-family dwellings to buildings worth upwards of $2 billion.

About Lockton
More than 4,900 professionals at Lockton provide 35,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.

SOURCE Lockton