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Does Your Payroll Service Provider Offer OCIP and CCIP? They Should.

June 21, 2023


According to the Davis-Bacon Act, state or federal projects are required to follow a wage chart and provide a certified payroll. Many construction companies trust third-party payroll service providers to ensure that their payroll is compliant. OCIP and CCIP insurance programs are also critically important, and not all service providers offer this coverage. At SPLI, we assist with a lot more than payroll. Learn how a PEO that works with OCIP/CCIP programs can save you money and help you stay compliant.

What Is OCIP?

OCIP stands for “owner controlled insurance program.” This is a type of insurance held by the property owner during a construction project. If your company is renovating a property or building a new property and the property owner carries commercial general liability (CGL) insurance or other liability insurance, employers’ liability, workers’ compensation, contractors pollution liability, risk or terrorism insurance, umbrella insurance, and the like, this is an OCIP program.

What Is CCIP?

CCIP, on the other hand, stands for “contractor controlled insurance program.” It delivers the same range of benefits as an OCIP, but the insurance is sponsored by the construction manager or general contractor handling the job. Just like an OCIP, a CCIP covers any liability on a construction project or over several ongoing projects. The only real difference between the two is whether the policy is paid for by the contractor or the property owner.

What Is Wrap-Up Insurance?

Wrap-up insurance is the same thing as OCIP and CCIP. It is a generic, catch-all term for a controlled insurance program, and you may hear the terms used interchangeably. Another type of wrap-up insurance is rolling wrap insurance, which allows the policyholder of an OCIP or CCIP to roll new projects into an existing policy. Usually, wrap-up insurance is purchased to cover a single project, but general contractors may use rolling policies to allow for ongoing coverage over a specific period of time across multiple jobs.

PEOs vs. Payroll Service Providers

PEO stands for “professional employer organization.” This type of company provides payroll administration and support to ensure that companies remain compliant with applicable laws. PEOs also provide additional outsourced human resources services and are a partner in your compliance, hiring, and payroll issues.

A PSP, or payroll service provider, on the other hand, simply handles payroll administration and has no shared legal responsibility with your company. PSP services generally cost less than PEO services, but they do not provide anywhere near the comprehensive help you can get from an experienced and qualified PEO like SPLI.

SPLI PEO Compliance and Insurance Services

SPLI provides comprehensive human resources and payroll administration services that allow you to focus on building your company and providing the goods and services in which you specialize. We offer support in areas such as payroll administration, remote paycheck services, and certified payroll services that help you save while maximizing your CCIP and OCIP coverage.

We’re ready to help you remain in compliance with all local, federal, and state laws in a single comprehensive package. If you would like to discuss your workers’ compensation, payroll administration, benefits, safety, or risk management services, get in touch with us today at 1-800-966-5562 or fill out our online contact form to request a quote today.

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