Owner-Controlled Wrap-Up

OCIP Insurance: Owner-Controlled Insurance Programs

An Owner-Controlled Insurance Program (OCIP) places a single master policy over an entire construction project — covering the owner, GC, and all enrolled contractors and subcontractors under unified terms. We structure, place, and administer OCIPs for projects of all sizes, typically $50M and above.

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How an OCIP Works

In a traditional construction project, each contractor and subcontractor carries their own general liability, workers compensation, and other policies. When a claim arises, multiple carriers and insureds may be involved — creating disputes over which policy responds, who's responsible, and who pays.

An OCIP eliminates that friction by placing a single, project-specific policy that covers all enrolled parties. The project owner sponsors and pays for the program. Contractors submit bids with an insurance credit deducted — reflecting the cost of the coverage the OCIP provides them. The owner controls the program, the claims, and the coverage terms.

The result is broader coverage, higher limits, and fewer gaps than any collection of individual contractor policies could provide.

What an OCIP Typically Covers

Commercial general liability — all enrolled contractors and subs
Builders risk / installation floater
Workers compensation for enrolled contractors
Completed operations liability — extended tail
Professional liability (design-build or design-assist projects)
Pollution liability (hazmat, soil, groundwater)
Project-specific excess / umbrella layers
OCIP Owner-Controlled Insurance Program for construction projects

OCIP vs. CCIP

In an OCIP, the project owner purchases and administers the program. In a CCIP, the general contractor purchases and administers it. The coverage structure is similar — the key difference is who sponsors, pays for, and controls the program.

OCIPs are common on public projects and owner-driven developments. CCIPs are common on GC-led projects where the GC wants uniform coverage across their supply chain.

Learn about CCIP Coverage

Benefits of an OCIP Program

Centralized Purchasing Power

A single master policy covers all contractors and subs under one umbrella — eliminating gaps between individual policies and often reducing total program cost.

Higher Limits Available

OCIPs routinely achieve $100M to $500M+ in combined limits, far beyond what individual contractor annual policies can provide.

Uniform Coverage Across All Parties

Every enrolled contractor and sub is covered on identical terms — no more uneven coverage or gaps where a sub's policy excludes a coverage the GC assumed was there.

Owner Controls Claims

The project owner controls the claims process, which typically means faster resolution and better preservation of contractor relationships — no finger-pointing between multiple carriers.

Extended Completed Operations

OCIP policies typically include a completed operations tail of 10 years or more — protecting the owner long after the last sub has moved on to other projects.

Simplified Contract Language

With an OCIP, insurance procurement language in subcontracts is standardized — contractors simply confirm enrollment rather than submitting individual COIs for each coverage layer.

OCIP FAQ

What size project justifies an OCIP?
OCIPs are typically cost-effective on projects with a hard cost of $50M or more. Below that threshold, the administrative cost of running an enrollment and claims administration program typically outweighs the premium savings. However, project type and owner risk tolerance also factor in — some owners use OCIPs on smaller projects for coverage uniformity rather than cost savings.
Who pays the OCIP premium — the owner or the contractors?
The project owner purchases and pays for the OCIP. Contractors typically credit back (deduct) the insurance they would have otherwise included in their bid — this is called an 'insurance credit.' The owner pays the OCIP premium but recovers part of the cost through reduced contract prices.
What coverages are NOT included in a typical OCIP?
OCIPs typically exclude: commercial auto liability (each contractor insures their own vehicles), contractor's equipment (contractor insures their own tools/equipment), professional liability (unless specifically added), and sometimes workers comp (that's a separate program element). Contractors must maintain their own excluded coverages.
How long does OCIP enrollment take?
Most carriers can have an OCIP master policy bound within 30–60 days of receiving complete underwriting information. The enrollment process for individual contractors and subs typically takes 2–4 weeks per enrollee. We recommend starting the OCIP process at least 90 days before construction begins.

Ready to Explore an OCIP for Your Project?

Schedule a consultation. We'll assess your project and outline an OCIP structure within 48 hours.

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