There is a difference between the owner's interest and that of the OCP.
Construction project owners face a lot of risks during construction.The risks associated with owning a project under construction can be transferred with insurance products.There are three common policies used to transfer these risks.If a wrap-up is right for your project, you can request a complimentary consultation here.
General liability insurance for vicarious liability is provided by Owner's Interest Liability Insurance.Protection will drop down to pay losses that are uncollectible because limits have been eroded or coverage otherwise cannot respond.It is possible to extend the policy to provide complete operations coverage in the applicable jurisdiction.Excess policies can be purchased to increase the amount of owners interest coverage.
Due to unavailable or misrepresented contractor indemnification and recent case law, owner's interest policy pricing is on the rise.Unexpected claims have been paid by carriers that have written these policies.
Only a single insured party, the project owner that hires the contractor, is covered by owners and contractors liability insurance.The owner's liability is protected by this policy.The coverage may be called independent contractor insurance.
The coverage promised to the named insured is very limited.There are two parts to the agreement.While the designated contractor is performing operations for the named insured at the location specified in the Declarations, it is not covered for its liability.The named insured of an OCP is only covered for its liability arising out of its acts or omissions in the "general supervision" of the designated contractor.
If injury or damage takes place after the earlier of when the operation has been completed or put to its intended use by anyone other than the Designated Contractor, the policy excludes coverage.
The premium for the policy is usually based on the contract price between the named insured and the designated contractor.
The coverage is limited to the limits provided by the OCP.
Wrap-Up Policies are insurance policies taken out by the owner of the project where construction is taking place.Instead of each individual contractor securing his/her own liability and/or worker's comp insurance for the project, the owner secures an OCIP that covers all construction and contractors.
The idea is that the insurance will cost less to purchase in bulk than it does to buy it on your own.The owner pays for the insurance policy and the contractors are covered under it, instead of them being covered by their own insurance.Each contractor has to identify the cost of insurance in their bid.The owner deducts the amount from the contractor's bid and then writes the contract net of the insurance costs.
Coverage under an OCIP can include both.The General Liability coverage usually has a dedicated completed operations tail.Significant excess limits can be purchased with an OCIP.
An OCIP gives an owner assurance that the contractors working on their project have enough coverage.The carrier, limits and how to handle claims are up to the owner.If a wrap-up is right for your project, you can request a complimentary consultation here.
Construction project owners can use this resource to evaluate the right insurance for their projects.There are a lot of risks faced by owners during construction on their property.Insurance products have been created to transfer the risks associated with owning a project.There are three common policies used to transfer these risks.