Owner-controlled insurance
Contents |
[edit] Introduction
An owner-controlled insurance programme (OCIP) is a business practice that consolidates insurance liability for construction projects. Owner-controlled insurance programmes allow property owners to purchase insurance on behalf of all of the contractors working on a project rather than allowing each contractor to purchase individual coverage.These policies are also referred to as wrap-up coverage or wrap policies.
Owner-controlled insurance programmes are purchased by the owner alone, which differentiates them from contractors' all-risk insurance or contractor controlled insurance programmes issued under the joint names of the contractor and the property owner.
[edit] Scope of coverage
Owner-controlled insurance policies may include:
- Building related insurance.
- Construction.
- Hazards.
- Liability insurance.
- Materials.
- Terrorism insurance.
- Umbrella insurance.
- Workers' compensation (WC).
These policies are written for the term of the project plus any extended periods, assuring continuity of insurance policy terms, conditions and exclusions.
[edit] Benefits of OCIPs
Owner-controlled insurance programmes can reassure property owners of consistent coverage throughout the project. For instance, they ensure that no uninsured workers are on the job, since rules are uniformly enforced by a single insurer or broker.
They also help to clarify budgeting issues, since insurance costs are established at a consistent rate (rather than being controlled by each contractor) and handled by a single insurance provider.
An owner-controlled insurance policy may benefit property owners who are in charge of several simultaneous construction projects and can gain efficiencies by bundling several projects under this method of coverage.
[edit] Drawbacks of OCIPs
Bundled insurance provided by owner-controlled insurance policies may put an additional administrative burden on property owners charged with overseeing responsibilities that may not be within their area of expertise.
The pricing of these policies may offer budgetary convenience for property owners, but they may also mean contractors are less motivated to control losses when those losses are not coming directly from their budgets.
See also: Integrated Project Insurance.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
CIAT Celebrates 60 years of Architectural Technology
Find out more #CIAT60 social media takeover.
The BPF urges Chancellor for additional BSR resources
To remove barriers and bottlenecks which delay projects.
Flexibility over requirements to boost apprentice numbers
English, maths and minimumun duration requirements reduced for a 10,000 gain.
A long term view on European heating markets
BSRIA HVAC 2032 Study.
Humidity resilience strategies for home design
Frequency of extreme humidity events is increasing.
National Apprenticeship Week 2025
Skills for life : 10-16 February
Update on the future of Grenfell Tower
Deputy Prime Minister decides for it be carefully taken down to the ground.
Ending decades of frustration, misinformation and distrust.
Essential tools in managing historically significant landscapes.
Classroom electrician courses a 'waste of money'
Say experts from the Electrical Contractors’ Association.
Wellbeing in Buildings TG 10/2025
BSRIA topic guide updates.
With brief background and WELL v2™.
From studies, to books to a new project, with founder Emma Walshaw.
Types of drawings for building design
Still one of the most popular articles the A-Z of drawings.
Who, or What Does the Building Safety Act Apply To?
From compliance to competence in brief.
The remarkable story of a Highland architect.
Commissioning Responsibilities Framework BG 88/2025
BSRIA guidance on establishing clear roles and responsibilities for commissioning tasks.