What is the difference between ocip and ccip

When determining which program is best for your project, here are some of the benefits and challenges you should be aware of. With an OCIP, the Owner and participants of the construction project can see benefits from the following key areas:.

The Owner should consider each as respect to overall cash flow. The Owner must also decide on the administration of the OCIP, as there can be a paperwork burden involved. In addition, an Owner must be engaged in the claims management process even after a project is completed, which can extend between five to ten additional years. Construction jobs come with a number of liability risks. What does wrap mean in construction? What is a project specific insurance policy?

Project Specific Insurance Policies. What is CCIP enrollment? What is CCIP in education? What is CIP coverage? Coverage provided by the plan and enrollment by program participants should begin before breaking ground. The majority of owner controlled insurance programs span several years usually 2 — 5 years for large projects. Coverage can often last years after the project completes, that is, if completed operations coverage is added to program. Except in the case of rolling OCIPs, the insurance program will apply specifically to one job-site or multiple specific sites associated with the project.

It is important to note that any other locations, even along the route between a covered job-site and a covered storage location, are not covered under the insurance program. This is one possible gap in coverage that can be filled with commercial auto insurance , which we discuss later. As discussed above, an owner controlled insurance program consists of many different insurance policies. So it stands to reason that the OCIP will contain the same exclusions as the policies that make it up.

Generally, owners can work with their insurance company to fill necessary coverage gaps; however, certain coverage listed below is simply not offered through an OCIP.

Commercial auto insurance policies are not included in OCIPs. The main reason for this is that verifying that damages actually occurred while on the job is very difficult. Because false claims are more difficult to identify, this coverage is not available for the insurance program and must be purchased by each contractor who needs it.

For more information, see our complete guide on finding the best commercial auto insurance companies or truck insurance policies. Even though surety bonds may not be included in the OCIP, similar protection can be included in the insurance program by adding subcontractor default insurance, discussed above. Contractors who do the majority of their work off of the job-site are usually not eligible for coverage under an owner controlled insurance program. For example, if someone builds a feature or component of the property away from the job site and ships it to the location, they would not be covered under this policy.

This is because they are not subject to the same safety and loss prevention measures that on-site contractors adhere to, and thus, are potentially at a higher risk for loss.

Contractors with very little relative impact on the project may also be excluded. This is similar to off-site contractors. Perhaps the contractors rarely appear on-site or have a very small potential risk profile associated with the work they complete. These types of contractors may be good candidates to keep off of the OCIP to avoid increasing costs of the program unnecessarily. Indirect additional costs that a contractor takes on as the result of a covered incident are usually not going to be covered by the OCIP.

However, contractors, designers, engineers, architects, and the like will usually have their own professional liability coverage that they can use to cover such potential damages.

Typically, anyone hired for one-off and exclusively off-site purposes are not going to be included on the OCIP. This includes materials vendors and suppliers, parts manufacturers, hazardous materials transporters, and trucking services. Owner controlled insurance programs provide several advantages and disadvantages to the owners and contractors who make use of, or are covered by, them.

Here we review the different pros and cons that owners and contractors find in using an OCIP. Several aspects of the owner controlled insurance program make it a beneficial method of insuring construction projects. For owners, some of the potential benefits include:. Whoever the policy sponsor is, named insureds will include the owner, general contractor and all enrolled subcontractors.

The developer, or the owner is named as an additional insured and is provided protection from the policy as well. Employing a CCIP allows the general contractor to control and manage the overall safety program of the projects included in the wrap-up. This includes lower insurance costs, improved site safety, streamlines claims, broadens coverage, reduces coverage gaps and allows small business enterprises participation.

Some other pros of a CCIP policy is reduced number of insurers, cost reduction, control of insurance, adequate limits, large contractor pool and coordinated claims. Having a smaller number of insurers, one insurance company reduces insurance gaps and extensive litigation to determine responsible subcontractor. Control of insurance allows for project management to maintain control of insurance with the best vantage of projecting all levels of risk.

Adequate limits assure project owners that the project is properly insured from top to bottom with every subcontractor projected. Coordinated claims means there is only one policy which can reduce the number of potential policies that need claims management.