What to Know Before You Get an OCIP
Construction jobs come with a number of liability risks. From injuries to damaging neighbors’ property to accidental unstable flooring. Each of these lawsuits can affect several parties on the construction crew. Fortunately, an OCIP (owner controlled insurance program) can help protect all parties under a blanket insurance policy. But before you secure such a policy, you’ll need to know the answers to these OCIP questions first.
Who pays the OCIP?
With an owner controlled insurance plan, the property owner and the general contractor will work out the terms of coverage together. The general contractor will then purchase and pay for the OCIP policy. Contractors and subcontractors on the job will be offered a lower rate for their work in exchange for not having to provide their own liability insurance coverage.
What does OCIP cover?
All policies will include commercial general liability coverage and workers’ compensation insurance to protect the property owner from liability losses.
- Commercial general liability insurance covers a wide range of liability risks, including third-party injuries on the worksite and property damage caused by the workers on the project.
- Workers’ compensation is required in most states. It is designed to cover lost wages and the cost of treatment associated with work-related injuries and illnesses.
What is not covered?
The following are typically not covered by OCIPS, and would become the responsibility of your contractors and subcontractors:
- Commercial vehicle liability insurance
- Commercial property insurance
- Inland marine insurance
Who is excluded from coverage?
OCIP plans do have some exclusions that you should be aware of. Generally, those excluded will include:
- Vendors, suppliers, and fabricators
- Hazardous materials transporter and contractors
- Architects, surveyors, and engineers
- Material haulers and truckers
Is OCIP insurance right for me?
If you are managing a large construction project with several contractors and subcontractors, OCIP insurance could be right for you.
To have an expert assess your unique situation and help you decide on OCIP Insurance coverage, contact Nahai Insurance Services. Our staff of experienced wrap policy professionals can help you best protect your upcoming project.