Owner Controlled Insurance Policy: The Complete Guide

What Is an Owner Controlled Insurance Policy (OCIP)?

An Owner Controlled Insurance Policy (OCIP) is a specialized “wrap-up” insurance program purchased and managed by the project owner to cover nearly all liabilities arising from a construction project. Rather than relying on each contractor or subcontractor to buy their own insurance, OCIP centralizes coverage in a single, powerful policy. Typical components of an OCIP include:

• Commercial General Liability (CGL)

• Workers’ Compensation

• Employer’s Liability

• Excess/Umbrella Liability

• Builder’s Risk

• Pollution Liability

• Completed Operations Coverage.

OCIPs are designed to reduce coverage gaps, decrease administrative costs, and provide greater financial and risk management control directly to the owner.

Why OCIP Is Transforming Construction Insurance

Traditional insurance processes require each contractor to manage and price their own policies, often leading to inefficiency, duplication, and hidden costs. With OCIP, the project owner purchases one overarching policy:

• Eliminates duplicate policies and reduces premium costs

• Simplifies administration, with one renewal and claims process

• Ensures compliance with all lender and investor requirements

• Boosts coordination for safety and loss prevention across all parties

For large-scale or long-term projects, OCIP is particularly valuable, but small to mid-sized owners are increasingly adopting it for its efficiency.

The OCIP Coverage Advantage

OCIP brings together multiple essential coverage elements:

• General and Excess Liability: Protects against property damage and bodily injury claims

• Workers’ Compensation: Covers workplace injuries for all contractors/subcontractors

• Builder’s Risk: Safeguards partially completed structures against fire, theft, vandalism, or natural disasters

• Completed Operations: Insures against losses or damages that occur after construction is finished

• Environmental, Professional, and Default Protections: Specialized add-ons for unique project exposures

This broad approach avoids inconsistent coverage and gaps that can leave owners exposed to costly risks.

Key Benefits of Owner Controlled Insurance Policies

1. Cost Savings and Control

• Single Policy, Lower Premiums: Bulk purchasing reduces costs compared to fragmented insurer bids from multiple contractors.

• Direct Owner Oversight: Owners set deductibles, policy limits, and even counsel for claims, empowering them to manage expenses and disputes actively.

• No Overhead Loading: Contractors are no longer embedding insurance costs into their bids, saving owners significant markups and profit loadings.

2. Enhanced Risk Management

• Clear Claims Handling: OCIP streamlines the claims process, with monies paid directly to the owner, making dispute resolution faster and more transparent.

• Uniform Coverage: All contractors and subcontractors share the same foundational insurance, keeping protection consistent across the project.

• Project Continuity: OCIP isn’t affected if contractors change mid-project or a partner faces insolvency, assuring uninterrupted coverage.

3. Simplified Administration

• Efficient Policy Management: One policy means less paperwork, simpler renewals, and no need to monitor each contractor or subcontractor’s certificates.

• Phased Projects: OCIP adapts to multi-stage developments and rolling coverage needs, supporting complex project timelines.

4. Lender and Investor Confidence

• Meets Financial Requirements: Lenders often require Delay in Start Up (DSU) insurance, easily integrated into an OCIP for clear financing pathways.

• Statute-Extended Protection: Policies often stretch coverage years past project completion, addressing legal statutes of repose and extended reporting periods.

When OCIP Is the Superior Solution

OCIP is especially beneficial for:

• Large projects with multiple contractors or complex risk profiles

• Renovations and new builds requiring builder’s risk, general liability, and worker’s comp

• Owners wanting to minimize project costs and maximize control

• Multi-site or phased construction, such as real estate developments, public infrastructure, or school systems

OCIP vs. Contractor Controlled Insurance Policy (CCIP)

OCIP delivers more transparency, cost efficiency, and risk control for owners than CCIP. Pacific Insurance, Inc. can help analyze which option best suits each project.

The OCIP Procurement Process

1. Project Assessment: Pacific Insurance, Inc. reviews project scope, risk exposures, and insurance needs.

2. Policy Design: Experts develop custom packages—including all required liability, builder’s risk, environmental, and excess protection.

3. Bid Coordination: Contractors adjust their bids to remove insurance costs, reflecting true construction pricing.

4. Ongoing Administration: Pacific Insurance, Inc. oversees policy management—from initial placement to claims advocacy and compliance.

5. Post-Completion Coverage: OCIPs continue protecting owners through the extended reporting periods as required by law.

Why Choose Pacific Insurance, Inc. for OCIP?

Unmatched Industry Experience

Pacific Insurance, Inc. brings decades of expertise serving Utah’s construction and real estate community, offering tailored solutions for projects of all sizes.

Dedicated Client Service

Pacific Insurance, Inc. navigates the complexity of OCIP procurement, administration, and claims so owners can focus on their development goals.

Comprehensive Risk Management

Proactive strategies, custom OCIP design, and compliance oversight set Pacific Insurance, Inc. apart from generic insurance brokers.

Proven Results

Clients consistently save money, eliminate headaches caused by fragmented policies, and benefit from transparent, efficient project insurance.

Contact Pacific Insurance, Inc. Today

Secure the protection and cost control that only OCIP delivers for construction projects in Utah. Call (801) 561-5550 to speak with a Pacific Insurance, Inc. professional and discover how OCIP can transform your next build.

Pacific Insurance, Inc.: Utah’s partner for Owner Controlled Insurance Policy expertise, guidance, and results.