Benefits of Choosing an OCIP
As a property owner or developer starting a residential or commercial building project, you will have access to a wide range of insurance coverage. One of the most effective options you should consider is a wrap insurance policy. Wrap-up insurance is designed to cover the owner, general contractor, and most subcontracts under one handy policy. This means that each party doesn’t have to go through the process of securing their own individual policies.
Wrap-up insurance comes in one of two forms: Owner Controlled (OCIP) or Contractor Controlled (CCIP). An OCIP is purchased by the owner or developer, whereas a CCIP is purchased by the contractor. Both policies have mutual benefits for property owners and developers.
Under wrap-up insurance, there is clarity of coverage because all participants fall under the same policy. Without this overarching coverage, there could be gaps in coverage if one subcontractor has different limits or protection. Wrap-up insurance gives you the peace of mind that everyone on the project is covered.
- Higher Limits
On a wrap-up, you get to enjoy higher limits on an OCIP or CCIP than individual subcontractors would have provided or could obtain. Generally, a modest-sized general contractor would only be able to obtain $2 to $5 million in policy limits. However, with a wrap-up, you can buy $35 million, $100 million, or more in policy limits. This helps to protect you and your project.
- Cooperative Defense
A wrap-up covers all parties, meaning there will be less finger pointing if there is an issue, construction problem, incident, or suit that brings about a general liability claim. Insurance companies won’t try to prioritize another policy and shift blame.
When you need help picking the best wrap-up insurance for your upcoming project, contact Nahai Insurance Services. We specialize in wrap-up insurance and can help you choose the right wrap-up policy for your specific needs on this specific build. Rest easy knowing you’ve put the proper safeguards in place by calling us today.