CCIP / Subcontractor Default

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.