Controlled insurance programs (CIPs)
CIPs can offer cost savings and administrative efficiency in both residential and commercial construction. Owner-controlled (OCIPs) and contractor-controlled (CCIPs) insurance programs in 2026 should be stable, except for a few challenging segments.
Primary general liability (GL) coverage is stable in residential CIPs, but buyers are seeing challenges in finding excess GL coverage due to fewer markets willing to write these layers.
On condominium and for-sale projects, the insurance market is hard, particularly in jurisdictions such as Florida. Capacity is constrained in this segment, and prices are continuing to rise.
Three types of CIPs are experiencing competitive conditions in the current market:
+ GL-only CIPs.
On owner-controlled programs covering only the general liability exposure, standard lines insurers are beginning to compete with excess and surplus lines insurers.
+ Data center CIPs.
Insurers’ large appetite for data center risks is making the market for controlled programs competitive.
+ Multiline CIPs.
Combining GL and workers’ compensation makes the GL component more competitive, and workers’ compensation rates are falling or soft where experience modification factors are going down.
Despite the generally favorable conditions for CIPs, owners and contractors should be aware that judgments and claims are getting larger, with an uptick in premises liability claims from owners of adjacent properties. Some risk mitigation steps to consider include post-completion inspections on residential projects, and monitoring of water intrusion, vibration, and settlement during construction.
