Understanding an Owner-Controlled Insurance Program
The prospect of your project needing an insurance policy means that you should understand how said insurance works. When you are looking for coverage for a specific project site, you may find you need an owner-controlled insurance program (OCIP). Check out the basics of how an OCIP works.
A typical OCIP provides general liability insurance coverage and workers’ compensation insurance coverage to all enrolled contractors and subcontractors performing operations at a specific project site. An OCIP may also include umbrella coverage for claims in excess of other policy limits. Individual contractors will normally remain responsible for obtaining their own insurance for auto liability and for their own equipment on the site.
Securing an OCIP may provide cost savings as well as improved insurance coverage to a project owner. Such a policy also provides the owner with more control over the insurance policy and throughout the claims process. By providing insurance through an OCIP, the project owner avoids lapses in coverage or inadequate insurance coverage that might result for claims made through individual contractors’ and subcontractors’ insurance. The claims process is simplified and more efficient by being filed through a single insurance carrier rather than several different agencies.
What’s more, an OCIP may potentially expand the number of contractors available to bid on a project. This is because an OCIP makes coverage available to contractors who might find insurance to be unavailable or out of their budget if they were responsible for providing their own coverage. In turn, the project owner may have a wider variety of professionals suitable for the work.
Securing the best OCIP insurance for your projects can be complicated, yet critical. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project. Our team are happy to help.