Owner-Controlled Insurance

Understanding Owner-Controlled Insurance

As a contractor, you understand the importance of having insurance to cover your liability and risk on the work that you do. After all, construction projects involve numerous site hazards and the use of heavy machinery and equipment that can be potentially dangerous. Your clients expect you to have adequate insurance protection to cover your work, and you have similar expectations of your various subcontractors. Have you ever considered how convenient it would be to have a single policy that covers an entire project or program (group of projects)?

Exploring Owner-Controlled Insurance Programs

Owner-Controlled Insurance Program or OCIP refers to a type of consolidated insurance program or wrap-up insurance that allows several policies to “wrapped up” into a single plan. An owner, contractor, subcontractors and other parties can be named as the insured under a single policy for a particular project. OCIP insurance can provide savings in that the cost to insure isn’t rolled up in the various contracts and subcontracts, which are ultimately paid for by an owner. It also helps reduce legal and administrative costs associated with a claim or loss.

Covering Your Operations

OCIP provides several common coverages:

  • General liability
  • Workers’ compensation
  • Builders’ risk
  • Excess liability
  • Errors and omissions
  • Subcontractor default

Other coverages are available with an owner-controlled insurance program. As with any good insurance plan, it’s important to get with a provider who can come up with a plan that addresses your typical and unique risks as a contractor.