OCIP (Owner-Controlled Insurance Program)

Overview

An OCIP — Owner-Controlled Insurance Program — is a type of wrap-up insurance program in which the property owner or developer purchases a single insurance program to cover all eligible contractors and subcontractors on a construction project. By centralizing insurance under one program, the owner gains control over coverage quality, limits, and costs while eliminating the need to review individual COIs for enrolled parties.

How It Works

The project owner works with an insurance broker to design and place the OCIP before construction begins. The program typically includes general liability, workers' compensation, and excess liability, all written on a project-specific basis. Some OCIPs also include builders risk and professional liability.

The OCIP process follows these steps:

1. Program design: The owner's broker structures the coverage and obtains carrier quotes
2. Bid adjustment: Contractors submit bids with insurance costs removed (insurance credits), since the OCIP will provide coverage
3. Enrollment: Each contractor enrolls in the OCIP by submitting payroll and exposure data
4. Coverage activation: Enrolled contractors are covered under the OCIP for work performed at the project site
5. Closeout: After construction, the completed operations tail period begins

Contractors enrolled in an OCIP still need to maintain their own insurance for work performed outside the OCIP project (other job sites, their own premises, etc.). The OCIP only covers project-specific activities at the designated site.

Compliance Relevance

OCIPs shift the compliance burden significantly:

• Reduced COI volume: Enrolled contractors do not need to provide standard COIs for the covered lines — the OCIP enrollment confirmation replaces them
• Enrollment verification: Compliance teams must verify each contractor's enrollment status rather than reviewing individual certificates
• Non-enrolled contractor tracking: Some contractors (e.g., material suppliers, equipment rental companies) may not be eligible for enrollment and still require traditional COI compliance
• Insurance credit audits: The owner must verify that enrolled contractors properly removed insurance costs from their bids
• Tail period management: After project completion, the OCIP's completed operations coverage must be tracked for the full tail period, which can extend 5 to 10 years

For compliance platforms, OCIP projects require a distinct workflow that tracks enrollment status alongside traditional certificate management for non-enrolled parties.