Proposed Legislation Attempts to "Wrap-up" CIP problems

Articles & Publications

June 1, 2007

Pending in the 80th Texas legislative session were two similar bills introduced in the Senate and House of Representatives that sought to establish standards for the coverage afforded by and administration of Controlled Insurance Programs ("CIPs"). The proposed bills aim to ensure that all involved in construction projects, namely general contractors and subcontractors, are protected by suitable insurance coverage and that the CIP is administered in a cost-effective manner. The legislation attempts to "wrap-up" problems that have oftentimes plagued OCIP (Owner-Controlled Insurance Programs) and CCIP (Contractor-Controlled Insurance Programs) projects.

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