Knowledge Corner

Construction projects come with inherent risks—from contractor liability and jobsite injuries to long‑tail completed operations exposure. That’s why many Owners turn to Wrap-Up programs, specifically Owner Controlled Insurance Programs (OCIPs) as a proven risk management tool. Below are the top five reasons OCIPs are so widely favored:

1. Consistent Insurance Coverage
Under a traditional model, each contractor brings their own insurance. Since each contractor’s insurance is different, their limits, coverage language, and exclusions will vary. An OCIP consolidates all participating contractors under one insurance policy. This ensures uniform coverage and consistent protection for the entire project. 

2. Increased Project Specific Limits
With OCIPs, the Owner’s Wrap broker negotiates policy limits tailored to the scale and complexity of the project. That often results in higher liability limits and broader insurance coverage than what individual contractors would carry.

3. Extended Completed Operations Coverage
Depending on the program, most OCIPs typically include extended completed operations (ops) coverage. Having an extended completed ops policy ensures that post completion exposures (ex. defects or latent injuries) remain protected beyond the project closeout. This isn’t guaranteed in contractor provided policies. 

4. Reduced Cross Compliant Litigation
When individual contractor carriers fight over claims responsibilities, litigation costs can skyrocket. OCIPs remove multiple carriers from the equation by centralizing coverage under one insurer, streamlining claims handling and significantly reducing interparty disputes.

5. Premium Savings
While implementing an OCIP may require an upfront investment in premium and administration, the long-term financial benefits can be significant. By insuring the entire project under one consolidated program, the Owner’s Wrap broker can negotiate better rates with insurers. 

As construction projects grow in size and complexity, so too does the importance of strategic risk management. OCIP programs offer owners a powerful way to gain control over their project’s insurance landscape. For owners seeking greater transparency, control, and financial efficiency, an OCIP isn’t just an insurance choice, it’s a smart investment in the success of the entire project. If you are interested in learning more about how an OCIP program can benefit your upcoming project, reach out to TSIB!  

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

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