OCIP

OCIP, Owner Controlled Insurance Program, is an insurance policy held by a property owner during the construction or renovation of a property.

Property Owners benefit from insurance policy controls through the reduced cost of the volume insurance policy. The traditional method for insuring construction consisted of each general contractor and sub-contractor owning their own insurance policy with any provider of their choosing. In OCIP, all construction, materials, hazard, work-man’s compensation, terrorist, and other building related insurance is purchased by the property owner.

OCIP advantages over Traditional Insuring Methods

*Lower Costs to the Property Owner as bulk purchase of insurance lowers total cost.
*Owner controlled insurance broker requires more stringent safety and loss control procedures.
*Reduction in time required for contractors to obtain insurance certificates
*Improved Risk Control and Claim Handling

OCIP disadvantages over Traditional Insuring Methods

*Increased administrator burden
*Increased accounting effort required to isolate contractor and subcontractor costs and insurance burden
*Potential for contractors insured under the OCIP to claim for non-project injuries