How to Protect Your Project with an OCIP
Owner Controlled Insurance Programs (OCIPs) are a popular type of insurance program in the construction industry today. Typically seen in large-scale construction projects with a general contractor and many different subcontractors who are working on the project, an OCIP program provides the owner of the project the benefit of ‘wrapping up’ insurance coverages into a single program.
To help ensure you avoid common pitfalls when securing this type of coverage, check out these key considerations.
As an owner or developer, you have the ability to customize certain aspects of the OCIP to best fit the project and your risk profile. Usually, the general contractor will have an ongoing ‘rolling wrap’ program in place. However, it’s wise to assume that the coverages in this CCIP policy are crafted to best suit the general contractor and not you as the owner. Be aware of potential hazards when using your general contractor’s CCIP.
Multiple Project Coverage
An OCIP program can be put in place to cover multiple projects that you are the owner or developer of within a three year period. You can also secure them with their own separate per project limits. This allows for great economics of scale and coverage enhancements.
Be aware of what your policy does and does not cover. The following are typically not covered by OCIPs and would, therefore, be the responsibility of your contractors and subcontractors:
- Commercial Vehicle Liability Insurance
- Commercial Property Insurance
- Inland Marine Insurance
Project owners should talk to their insurance agent if they are unsure about what their policy covers.
Securing the best construction 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.