An OCIP insurance policy, or wrap-up policy, can help a construction project to stay safe.
Understandably, constructing a multi-million-dollar project can be stressful. Owners, developers, contractors alike must coordinate to make sure that the building process runs according to budget limitations and finish on time. Alongside safety procedures and organizing projects within the project, insurance must be thought about. Your business may face the dilemma of needing OCIP insurance.
Owner-controlled insurance programs (OCIPs) or contractor controlled insurance programs (CCIPs), commonly referred to as ‘wraps’ are traditionally used for large commercial projects with high construction costs, as well as all sizes of residential development.
Wrap-up insurance, such as an OCIP, is set up by the owner (you) of the project for the benefit of the builder or contractor to cover all listed contractors. It is unlike traditional construction coverage, providing eligible participants of a building project with general liability coverage under one policy with one insuring entity!
- Under one master policy, an OCIP policy covers commercial general liability and workers’ compensation insurance for all enrolled participates associated with a specified project.
- In an OCIP or CCIP policy, the developer, general contractor, and all of the subcontractors become named insurers under a single policy that covers a single construction project.
- However, an OCIP doesn’t cover vendors, suppliers, or material dealers. Additionally, it may exclude contractors who handle hazardous materials such as asbestos and hazardous waste.
- Engineers and architects are often included as participants, but not for professional liability. For them, additional coverage should be attained.
- Fortunately, an OCIP covers the life of a project, plus an extended completed operations’ period.
From general liability, umbrella liability, builders risk, workers’ compensation, commercial vehicle, and property damage, an OCIP insurance policy can cover it all so that your project, building, and contractors are protected!