Here’s what you need to know about OCIP insurance, wrap insurance, and the difference.
Protecting a construction project isn’t always easy. You need to consider which involved parties you want to protect, covering equipment as it comes on and off the site, the value of the finished product, and more. Fortunately, when you’re looking to safeguard your next building, you have a couple of options: OCIP insurance and wrap insurance. But what’s the difference?
At their core, OCIP and wrap coverage options are actually the same thing. They both include insurance coverage for things like general liability, excess liability, and even workers’ compensation. The fundamental difference between these two types of policies is not what they cover, but by whom they’re controlled.
Wrap policies can be controlled by either the owner or the contractor. In addition to protecting the project owner and contractors, wrap coverage also extends to subcontractors. At the end of the day, that means that if something goes wrong on the job site, the policy can step in no matter who is at fault.
The OCIP, or Owner Controlled Insurance Program, is (you guessed it) controlled by the owner. It’s actually a type of wrap-up coverage, and is given the name OCIP to designate who controls the policy. The project owner purchases this policy to protect the project, and coverage will extend to the contractors and subcontractors involved.
There are also CCIPs, or Contractor Controlled Insurance Programs, available. This is wrap-up insurance controlled by the contractor.
Determining exactly which coverage option is right for your upcoming build isn’t always easy. It pays to go to high-risk experts who can pinpoint your unique exposures and help you choose the right protection. Whether you need OCIP insurance or wrap insurance, contact Nahai Insurance Services. We’re specialists at writing even the hardest-to-place construction coverage, and can tailor your policy to protect the parties and parts of your project that are important to you. To learn more, call us today!