Contractor Controlled Insurance Program (“CCIP”)
- An insurance policy/program that provides protection from subcontractor negligence/claims due to inadequate limits or terms and conditions of coverage (policy exclusions).
- Additional benefits include:
- providing risk distribution and risk sharing;
- separate profit center for your operating company; eliminates any delay in settling bonding or surety disputes; and
- coverage of critical exposures.
- CCIP cover is addressed through individually owned micro captive with excess coverage usually provided by re-insurer (approx. $25,000 deductible).
Subcontractor Default Insurance Program
- Affords protection against the insolvency of a subcontractor and their inability to complete the necessary work for the project.
- Covers the cost of finding another subcontractor to complete the required work and any subsequent additional costs not otherwise contemplated.
- Exposure traditionally covered by an expensive surety arrangement.
- Separate profit center for your operating company.
- Ability to charge the subcontractor with minimal additional cost and spread risk among multiple subcontractors.
- Third-party diversification for the micro captive.
- Rates and premiums must be actuarially certified – which would be part of the feasibility study of your captive opportunity provided by MCS.
- Eliminates delay caused by bonding/surety disputes.