Owner Controlled Insurance Program:

An Owner Controlled Insurance Program (OCIP) is a risk management technique where the OCIP sponsor consolidates the insurance purchasing power of all the contractors and subcontractors involved in the project. This leveraged buying power can facilitate the purchase of insurance at a discount, and a customized, cohesive program of insurance, which best protects the interests of the sponsor, the sponsor’s project and the project contractors.

The sponsor is generally the owner, but can also be the general contractor, design builder, program or at-risk construction manager.

Coverage customarily consists of (any combination of the following):
Workers Compensation and Employers Liability
General Liability
Excess Liability
Builders Risk

Additional coverage may include:
Pollution Liability
Professional Liability (E&O)

Reasons for setting up an OCIP include:
Favorable pricing discounts for the sponsor
Added savings based on contractors’ inability to mark up the purchase of their own insurance as an undisclosed component of overhead.
Completed Operations Liability provided for up to 10 years after completion of the project.
Elimination of duplicate insurance.
Bulk purchasing, which means access to expanded coverage and higher limits.
Uniform and customized insurance policy terms, conditions and exclusions.
Minimizing the potential that insurance policy limits will be inadequate, depleted or unavailable for the project.
Centralized safety, which provides a master plan and central control for all participants.
Centralized claims management, which affords one provider and coordinates investigation and litigation and facilitates public relations efforts.
Improved Disadvantaged Business Enterprise (DBE) competition and participation when insurance availability allows all to favorably compete.
Wrap-up staff provides insurance certificate administration.

Potential problems with an OCIP include:
Contractor resistance because they lose control of coverage and the ability to include cost in the bid.
Administrative burden because the sponsor cannot avoid some elements of administrative participation and oversight.
Program savings may be difficult to assess except over the long term, because economies of scale require time for measurable savings to accrue.
Added responsibility for maintaining the program.
Potentially lengthy closeout of loss sensitive premium rating plans.


Staffing
Wrap-up Administration
WRISC Safety Staffing