Owner Controlled Insurance Programs

Owner Controlled Insurance Programs (OCIPs) are a type of insurance program that provides coverage for all parties involved in a construction project under a single policy.

Key Components

Project Owner Control: In an OCIP, the project owner or developer takes control of the insurance program and purchases a comprehensive insurance policy that covers all project-related risks.

Coverage for All Participants: OCIPs provide insurance coverage not only for the project owner but also for all contractors, subcontractors, and sometimes design professionals and suppliers involved in the project.

Comprehensive Coverage: The insurance policy typically covers a wide range of risks, including general liability, workers' compensation, builder's risk, professional liability, and sometimes even environmental liability.

Challenges

Administrative Complexity: Setting up and managing an OCIP can be administratively complex and time-consuming, requiring expertise in insurance procurement and risk management.

Coverage Gaps: While OCIPs aim to provide comprehensive coverage, there is still the potential for gaps in coverage or disputes over coverage terms.

Project-Specific: OCIPs are typically employed for large construction projects, and their feasibility may vary depending on the size and complexity of the project.

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