ocip insurance

What is OCIP Insurance?

OCIP Insurance

OCIP insurance stands for Owner Controlled Insurance Program insurance. It’s a type of insurance policy that provides comprehensive coverage for construction projects. The policy covers all contractors and subcontractors who work on the project, including the owner of the property. An OCIP policy combines all the insurance policies that would be typically required for a construction project into one comprehensive policy. This coverage is also known as wrap-up insurance because it wraps all coverage to a single policy instead of several fragmented policies.

It covers the project site, workers, materials, and equipment used during the construction. Also, it includes general liability insurance policy to protect against property damage and injury claims caused by third parties or workers. It also provides coverage for risks like loss of income, construction delays that are beyond the control of the policyholder or any related contractors.

The policy is different from a traditional liability policy because all involved parties of construction projects are covered in one policy. It covers all the contractors working on a project, from plumbers and electricians to carpenters and builders. The coverage also includes the owner of the property, the general contractor and subcontractors working on the project.

The insurance is mostly used for large construction projects, such as high-rise buildings, bridges, and tunnels. The policies vary in duration depending on the time it takes to complete the construction work, and rates can be based on the projected cost of the project. The policy also saves owners of construction projects the time required to purchase separate insurance policies from various providers as it provides a one-stop solution with a single provider who covers all contractors working on the project.

Some construction managers and owners may not require OCIP insurance coverage for small construction projects, while others may make it mandatory for all projects regardless of their size. Large construction jobs tend to have a lot more risks and variables involved in them, which makes OCIP coverage an important and necessary component of the project.

Ultimately, OCIP insurance is a tool that owners of construction projects use to manage risks, economize on costs, and maintain a high degree of control over construction projects’ outcome.

How does OCIP Insurance differ from traditional insurance?

OCIP Insurance

Owners Controlled Insurance Program (OCIP) is designed to help owners and general contractors by consolidating insurance policies for large construction projects. Whereas traditional insurance policies only cover specific parts of construction projects, OCIP insurance consolidates insurance into one policy that covers all parties involved in the project. Here are some of the notable differences between OCIP and traditional insurance:

Cost Savings

With traditional insurance, each company involved in the project such as contractors, subcontractors, and architects may have to obtain their own insurance policies. Each of these insurance policies will come with their own costs that can add up quickly. With OCIP insurance, however, the insurance premiums are typically lower since insurance companies consider the entire project as a whole. This means the owner can expect to pay significantly lower insurance premiums since they are in control of the insurance policy.

Scope of Coverage

Traditional insurance policies are typically limited in scope to cover only specific parts of a construction project. For instance, a contractor’s insurance policy may only cover losses caused by their own direct negligence. Conversely, an OCIP policy covers all parties involved in the project, including subcontractors and architects, under one policy. A comprehensive policy such as an OCIP also provides coverage for any losses that occur during the construction project, including ones due to unforeseen circumstances like natural disasters.


Unlike traditional insurance policies, OCIP policies give the owner full control over the insurance policy. With OCIP insurance, the owner can decide which insurance company they want to get their policy from, what the scope of the policy needs to be, and which contractors and subcontractors are covered under the policy. This means that the owner is responsible for ensuring that all parties involved in the project have access to the same level of insurance coverage, thereby providing an extra level of protection.

Claims Process

With traditional insurance policies, the process for filing and managing claims can be quite complicated. Each party may have its own claims process, and the coordinator responsible for reconciling claims will need to coordinate between several insurance companies. Additionally, traditional insurance policies are often rife with loopholes that can lead to disputes over coverage details. Conversely, an OCIP policy streamlines the claims process, making it more efficient and less prone to disputes. With OCIP insurance, there is only one insurance policy and claims process, which reduces the need for coordinators to manage multiple claims.


OCIP insurance provides a comprehensive and cost-effective solution to traditional insurance policies for large construction projects. By consolidating policies to cover all parties involved in the project, owners and general contractors can take advantage of lower premiums, a more comprehensive scope of coverage, increased control over the policy, and a streamlined claims process. To ensure success when undertaking large construction projects, it’s important to consider the benefits of an OCIP policy.

Benefits of OCIP Insurance for construction projects

Construction workers on site

Construction projects involve many risks that can lead to financial loss and delays. This is why it’s crucial for construction companies to have insurance coverage that protects them from these risks. Owner Controlled Insurance Programs (OCIP) provide coverage for all parties involved in the construction process, including contractors, subcontractors, and employees. The benefits of OCIP insurance are numerous and can have a significant impact on the success of a construction project.

1. Reduced Insurance Costs

Money stacks

The primary benefit of OCIP insurance is cost savings. With an OCIP, the owner or developer of the construction project takes out an insurance policy that covers all parties involved in the project. This means that the contractors and subcontractors don’t need to obtain their own insurance policies, which can be expensive. With an OCIP, insurance costs are reduced for everyone involved, as the owner or developer can negotiate better rates with the insurer. Additionally, having a single policy reduces administrative costs and can help avoid insurance overlaps and gaps, which can lead to disputes and delays.

2. Improved Safety

Construction safety

An OCIP can also improve safety on a construction site. As part of the OCIP, the owner or developer typically requires all contractors and subcontractors to adhere to certain safety standards and best practices. This can help reduce accidents and injuries on the construction site, which can lead to delays and increased insurance costs. By promoting a culture of safety, an OCIP can also help attract better-quality subcontractors, who are more likely to have good safety records.

3. Increased Coverage

Construction damages

OCIP insurance also provides increased coverage for construction projects. The policy typically covers all parties involved and provides protection against a wide range of risks, including damage to the construction site, third-party liability, and workers’ compensation. This means that if something happens during the construction process, all parties involved are protected. With an OCIP, there’s no need to worry about whether or not a subcontractor has adequate insurance coverage or whether their insurance policy will cover a particular event or incident. All parties are covered under a single policy, which provides greater peace of mind for everyone involved.

In conclusion, OCIP insurance can provide numerous benefits for construction projects, including cost savings, improved safety, and increased coverage. By working with an insurance provider that specializes in OCIP insurance, construction companies can be confident that they have the protection they need to complete their projects successfully.

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