OCIP Insurance

THE OWNER CONTROLLED INSURANCE PROGRAM (OCIP)

If you’re the owner of the project being developed an OCIP might be a good option for you. OCIP is an insurance policy held by the project owner during construction, which typically covers almost all general liability coverage that may arise from the construction project. OCIPs replace the traditional method of insuring construction projects – that is where the various parties involved obtain their own insurance coverage. The policy is designed to provide coverage through the full statute of repose of the state in which the construction occurs (for example, ten years in California)

Often owners turn to Nahai Insurance Services to implement a wrap-up to realize premium savings, improve coverage terms and hedge against rate increases. Our high-risk experts are able to design a program that will suit your requirements as an owner, that will offer you advantages and a sense of security while your property is being developed. They are wrap-up specialists who will stand by you through the entire process and beyond to ensure your specific insurance needs are met.

BENEFITS of OCIP INSURANCE

Following is an overview of the many benefits and advantages of an OCIP:

Get Adequate Coverage for Your Project

It’s often a challenge to make sure all the contractors on your project are adequately covered. Any lack could leave you, as the general contractor, vulnerable. Typically, you would have to examine all the contractors’ policies, checking for limitations, exclusions or other technicalities that may be hidden. With an Owner Controlled Insurance Program that kind of scrutiny is not necessary. All general contractors on your construction project share the same coverage, and since the OCIP is specific to your project, the liability coverage will be broader, with higher limits than your contractors would be able to secure on their own.

Enjoy Lower Costs

The OCIP puts you in charge and gives you the advantage of “buying in bulk.” As the project owner, you will not have to contend with unnecessary costs resulting from the contractors’ liability insurance. In addition, general contractors often mark up the cost of their insurance, and pass the expense on to the project owner. With an OCIP, the only thing passed on to you is savings.