CONTRACTOR CONTROLLED INSURANCE PROGRAM (CCIP)
Zachry Vaughn Layton (ZVL) will utilize a Contractor Controlled Insurance Program (CCIP) for all eligible contractors performing work at the project. CCIP Consists of the following:
On-Site Coverages
Workers Compensation:
Statutory Limits and Employers Liability of $1,000,000
Commercial General Liability:
$2,000,000 each occurrence
$4,000,000 Completed Operations Aggregate
Excess Liability:
$25,000,000 each occurrence and aggregate limit
Eligible Contractors
Eligible contractors include all contractors performing work at the project site.
Ineligible Contractors
Typical ineligible contractors would be those who are providing delivery or materials only; off-site fabricators; or others whose work is not performed at the project site. ZVL will retain final decision regarding CCIP enrollment eligibility.
Off-Site Coverages
Enrolled contractors will still need to provide certain off-site coverages required for their work performed. These would include:
Auto Liability- $1,000,000 Combined Single Limit
Commercial General Liability- $1,000,000 per occurrence and $2,000,000 General Aggregate
Excess or Umbrella Liability- $5,000,000 per occurrence and aggregate
Other Coverages
The CCIP program does not provide contractors equipment, automobile physical damage, or any other insurance coverage required for the contractors operations, on or off-site, not otherwise detailed above. Both enrolled and non-enrolled contractors are required to provide these coverages at their own expense.
Enrollment and Certificates of Insurance
The CCIP Administrator will issue a certificate of insurance to each enrolled contractor evidencing the coverages provided by the CCIP to the enrolled contractor.
The contractor upon the issuance of a contract by ZVL will be required to provide certain information to the CCIP Administrator that will allow for the issuance of policies and certificates to the enrolled subcontractor.
Off-Site certificates of insurance will be required of enrolled contractors at this time.
Claims
Coverages are provided by ACE Insurance Company, and AXIS Surplus Insurance Company, and other highly rated insurers.
Claims handling services will be provided by SRS. Specific claims handling instructions will be provided to each enrolled contractor for the CCIP at time of enrollment.
Frequently Asked Questions
1) What is a CCIP? CCIP stands for Contractor Controlled Insurance Program. The program is established by the CM/GC who procures insurance on behalf of all the other parties working at the project site.
2) Do I have to enroll? Unless specifically excluded from the program due to the scope of your contract (i.e. asbestos abatement) all contractors will enroll in the CCIP program.
3) Once I enroll do I have to re-enroll for subsequent contracts? You will be asked to complete a new enrollment and insurance credit worksheet for each contract at the project. This allows the CM/GC the ability to track the financial impact of the contract to the program.
4) How do I calculate my insurance credit? The insurance credit is calculated by utilizing the Insurance Credit Worksheet. The actual calculation includes payroll estimates for particular class codes multiplied by your current insurance rates for Workers Compensation. General Liability is calculated on either a revenue or payroll basis multiplied by your current liability rate.
5) How does my participation in the CCIP benefit me? The CCIP is intended to provide broad project specific insurance coverages and limits that are adequate for all participants. One of the main advantages to contractors is litigation resolution. Since all participants are provided coverage by one insurance carrier claims disposition is handled more efficiently.
6) If the sponsor is providing coverage why do I have to provide off-site COI? The CCIP provides coverage only for working performed on the project site. Contractors still need to maintain coverage for off-site exposures.
7) Why do I have to provide rate pages? To verify the rates provided on the credit worksheet. This will assist the GC/CM in determining the final financial impact of your contract on the program.
8) My insurance carrier will not provide a credit for payroll performed under the CIP, can I be excluded? No, unless ZVL provides a specific exception. As respects workers compensation and general liability, credits are available for all contractors for work to be performed on this project If assistance is needed in this negotiation, contact McGriff for assistance.
9) Why does the owner have to be named additional insured and be provided a waiver of subrogation for offsite coverage? Contractually this is required. This is to certain that coverage from the contractor responds providing additional insured status for UHS should a loss occur off-site.
10) Will I be charged for this CCIP coverage? There will be no monetary transaction between yourself and the GC/CM, your “payment” for the insurance is provided by the reduction in your bid proposal and final contract. There will be no additional deductible charges in the event of a claim. However, claims will be reported to the NCCI and they will ultimately affect your company EMR.
11) The limits for the project are shared amongst all contractors which could potentially dilute coverage in the event of a claim…can I be excluded? This is a concern of many contractors; however, the ZVL has evaluated the limits of insurance provided and is comfortable that adequate limits are in place for the project and all participants. Keep in mind that the limits provided are annual limits not project term limits (except for completed operations).
More Information
Detailed information regarding the CCIP for the UHS Project can be obtained from the UHS CCIP Manual, or the CCIP Orientation Overview document, both which can be accessed at www.zvlccip.com.
Specific questions regarding coverages and enrollment requirements should be addressed to the CCIP Administrator at 205-581-9480 or ZVLCCIP@mcgriff.com.