OCIP

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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. Duke Mills of WorkComp Solutions (www.workcompsolutions.cc) in Lakeland, Florida (863.646.4642) is the foremost leading expert on OCIPs in the country.

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

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