Understanding OCIP Coverage
Before you take out an OCIP (“owner-controlled insurance program”), it’s essential to know the basics about coverage and how it can help your project. Be sure you know the answers to these questions when thinking about obtaining OCIP insurance.
How is OCIP insurance different to traditional coverage?
In traditional insurance, the general contractor and each subcontractor purchase their own commercial general liability policies for the project. Each subcontractor needs to name the general contractor and the developer on their policy, which means that can be several different insurance companies covering the project. If an accident were to happen, the various insurers may be held up in court arguing about who is responsible for damages. In an owner-controlled insurance plan, all contractors and subcontractors on the project are covered by the same insurance company under the same policy. This means that claims tend to be resolved faster and more easily than with traditional coverage.
What does OCIP cover?
All OCIP policies will include commercial general liability coverage and workers’ compensation insurance to protect the property owner from liability losses. It may also include:
- Pollution liability insurance
- Builder’s risk insurance
- Professional liability insurance
- Umbrella insurance
What is typically excluded from coverage?
OCIPs tend to exclude the following from coverage:
- Commercial vehicle liability insurance
- Commercial property insurance
- Inland marine insurance
As a result, the responsibility of these coverages will fall to contractors and subcontractors on the job.
Have more questions about OCIP coverage? To have an expert assess your unique situation and help you decide on OCIP Insurance coverage, contact Nahai Insurance Services. Our staff of experienced wrap policy professionals can help you best protect your upcoming project.