WHAT IS OCIP?

Owner Controlled Insurance Program (“OCIP”) or Wrap-Up Insurance is an insurance program under which a project owner provides various insurance coverages to contractors and subcontractors. The Owner procures these coverages on behalf of all parties working at the job site, rather than having each contractor supply its own insurance for the project. An OCIP can be site-specific or it can be for multiple jobsites. Most OCIPs are multi-year programs with a fixed duration.

Typical insurance coverages under an OCIP are:

• Workers' Compensation
• General Liability
• Builder's Risk
• Excess Liability
• Pollution Liability
• Architects and Engineers Professional Liability
• Railroad Protective Liability

Commercial Auto Liability coverage is usually excluded due to the difficulty of controlling/verifying losses. If included, such coverage could negatively impact OCIP savings. The coverage on contractors’ tools and equipment is also excluded because these items are considered mobile and therefore difficult to manage. In addition, the premium costs for these policies are not significant and would be difficult to isolate from bids.