What is an OCIP Wrap Up?

On construction projects, it is widespread practice to enter an Owner-Controlled Insurance Program (OCIP). Essentially, this means that the owner or developer of the project provides the program which partners all parties involved such as the developer and contractors, and wraps them up into one insurance policy. In doing so, it provides all parties with commercial liability insurance.

image of OCIP Wrap Up with pen and hands

Specifications of an OCIP

  • Those involved range from subcontractors to general contractors from every level of the on-site job.
  • The OCIP only includes specific eligible participants of the job. The following are not included:
    • Vendors or material dealers
    • Contractors who handle hazardous materials and waste
  • Though the engineers and architects are included as participants, they are not included in professional liability coverage
  • The coverage provided by the OCIP ranges from the lifespan of the project and into the operational period for an extended time.

Benefits of an OCIP

  • Provides the owner with the peace of mind that individual contractors and subcontractors are all appropriately covered.
  • Allows for coverage to be provided uniformly with all participants facing the same limitations of liability.
  • Due to the lack of coverage for cross-claims, a plaintiff’s attorney would be less likely to attempt to spark infighting amongst the members of the OCIP
  • In the event of a lawsuit, the contractors can form together to create a stronger defense as a unit as opposed to multiple smaller individual defenses.
  • The owner has control over decision making.

Consider an OCIP

An OCIP is a terrific way to cover a project and ensure that all areas are accounted for equally. When covering all parties individually, all parties are at a disadvantage. At Johnsons Insurance, we offer cost-effective insurance and risk management programs to ensure that your commercial project is covered. With over 35 years of experience, we strive for excellence in providing you with the commercial insurance products that best suit your needs. For more information about OCIP wrap-ups and how they can benefit you, contact us at 305-289-0213 today to learn more about how to protect your projects.