Owner-Controlled Insurance Programs (OCIPs) are specialized insurance solutions that cover large construction projects under one policy. Instead of each contractor and subcontractor getting their own policy, the project owner gets a master policy that covers all the risks of the construction process.
An Owner-Controlled Insurance Program (OCIP) is a wrap-up policy that combines several types of coverage into one. OCIPs include general liability, workers’ compensation, builder’s risk and other coverages.
The project owner manages the program and administers the insurance so contractors and subcontractors don’t have to get their own policies. OCIPs eliminate gaps in coverage, reduce paperwork and simplify the insurance process.
OCIPs can lead to significant savings by reducing overall insurance costs, typically ranging from 2% to 4% of construction expenses. Apart from costs savings, there are a number of other key benefits:
OCIPs reduce the risk of coverage gaps or duplications. All parties are covered under the same policy, enduring consistency and clarity.
OCIPs simplify claims management by consolidating everything under one insurance provider. This leads to faster claims resolutions and fewer disputes between different insurance providers.
Project owners maintain greater control over insurance coverage and risk management. This allows them to tailor the policy to meet the specific needs of the project.
OCIPs often include safety and loss control initiatives, which encourage a safer work environment and reduce the likelihood of accidents and claims.
OCIPs are generally most beneficial for large construction projects or companies with large budgets. Typically, project owners in the following sectors should consider OCIPs:
OCIPs typically offer comprehensive coverage, combining various types of insurance that are crucial for construction projects.
General liability covers third party claims for property damage or bodily injury. This is for the project owner and contractors to be protected from lawsuits or claims that arise on site. OCIPs provide comprehensive liability coverage, protecting against various claims including third-party bodily injury and property damage.
OCIPs often include coverage for subcontractors so all parties involved in the project are covered. This eliminates the need for individual subcontractor policies and makes the process easier and more comprehensive for all project participants.
Workers’ compensation covers medical expenses, lost wages and rehabilitation costs for employees injured on the job. It’s for the well being of the workers and to protect the project owner from legal liabilities for workplace injuries.
Professional liability, also known as errors and omissions insurance, covers claims for design errors or professional negligence. This is especially important for architects, engineers and other professionals involved in the project.
Builder’s risk covers the physical structure under construction, including materials, equipment and fixtures. It covers risks like fire, theft, vandalism and natural disasters during the construction phase.
Pollution liability insurance is important for covering a range of environmental liabilities specific to large-scale construction projects.
If you want to get an exact cost for an Owner Controlled Insurance Program, we encourage you to get quotes now from our experienced agents.
Our experienced agents are well versed in the complexities of this type of insurance coverage. After understanding your construction project, our agents can usually reduce policy prices through additional discounts of 10% to 15% from the instant quotes you receive.
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