Are you on the fence about getting an owner controlled insurance program? Read on!
An Owner Controlled Construction Insurance Program (OCIP), or ‘wrap-up’ enables a construction company owner or contractor to protect his or her business, along with various other contractors involved in a construction project. Better yet, it’s all under one policy! From the physical building to the contractors to the liability risks, it pays to have protection (and peace of mind!) under one policy.
Typically, an Owner Controlled Insurance Program covers:
- Commercial General Liability – This covers all liability risks for the project, including bodily injury and property damage.
- Design Errors and Omissions – Safeguarding contractors against liability for design mistakes, this part of your policy can cover a single project or all of the contractors’ work.
- Builder’s Risk Insurance – Covers the building under construction against damage from causes such as fire and severe weather.
The owner purchases insurance for all of the contractors and subcontractors involved in the construction project. The owner strives to save money by buying insurance for the entire project to avoid paying for contractor markups on insurance costs! Essentially, the project is protected, and the owner gets to save a buck (or a few!).
If you’re not convinced that you need this policy, check out a few of the benefits of obtaining an OCIP policy:
- Can lower insurance costs by lumping coverage into one policy.
- Coverage is increased for higher-costing policies (such as $5 million). Coverage may also be broader than that obtained by contractors or subcontractors.
- Uses one insurance company and one legal firm to handle any claims – instead of many lawyers and insurance carriers who may be manipulated into settling a lawsuit at inflated costs.
- Coverage brings all participants together as co-defendants in construction defect claims.
- The policy provides coverage for investigation for work-related accidents and injuries, and defenses against the claims.
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.