OCIP Insurance

By Sheena Abris On Aug 15, 2025

OCIP Insurance: The Complete Guide for Owners, Contractors, and Developers

Owner Controlled Insurance Program (OCIP) insurance is transforming the way major construction projects are protected across the country. For developers, property owners, contractors, and financial stakeholders, OCIP offers a unique blend of cost savings, broad coverage, and administrative simplicity—benefits that become especially valuable as project sizes and complexity increase. If you’re considering OCIP insurance, Pacific Insurance, Inc. is a trusted expert that delivers tailor-made solutions for your needs. Call them at (801) 561-5550 for a personalized assessment and quote.

What Is OCIP Insurance?

An Owner Controlled Insurance Program (OCIP) is a bundled, all-encompassing insurance policy purchased and managed by the project owner for a construction or renovation project. Instead of every contractor and subcontractor securing their own coverage, an OCIP centralizes coverage for nearly all parties involved—owner/developer, contractors, and subcontractors—under one policy.

Key Features

Coverage from start to finish: OCIP typically provides coverage throughout the construction period and for years after with completed operations protection.
Wide protection: Includes general liability, workers’ compensation, excess/umbrella liability, builder’s risk, and more.
Project-specific: Policies are tailored to suit the unique risks and requirements of the project.
“Wrap-up” insurance: OCIPs are often referred to as wrap policies, as they “wrap” all necessary coverages into one program.

Traditional Construction Insurance vs. OCIP

Traditional model: Each contractor and subcontractor purchases their own insurance, which is then factored into their bids. This can create overlapping coverage, administrative inefficiencies, and potential gaps or disputes in claims.

OCIP model: The owner purchases a single policy covering all parties. Contractors bid withoutincluding insurance costs, simplifying bids and lowering total costs. In the event of a claim, administrative overhead and litigation are drastically reduced, since coverage is uniform and every participating entity is co-insured under one policy.

Coverage Components of OCIP Insurance

The scope of an OCIP can be broad. Typical coverage includes:

1. Commercial General Liability (CGL)

Protects against bodily injury, property damage, and personal injury arising from construction operations.

2. Workers’ Compensation

Covers medical expenses and lost wages if workers are injured on site. Centralizing workers’ comp under OCIP means bulk purchasing and lower premiums for all participants.

3. Builder’s Risk Insurance

Insures against physical damage to the project during construction—such as fire, vandalism, weather events, or theft.

4. Excess/Umbrella Liability

Provides additional protection above and beyond standard CGL limits for catastrophic losses.

5. Completed Operations Coverage

Extends coverage after project completion, safeguarding against claims that may arise within the statute of limitations.

6. Professional Liability

Optional; covers costs related to design errors by architects, engineers, and consultants.

7. Subcontractor Default Insurance

Shields the owner against financial losses if a contractor or subcontractor fails to fulfill their obligations.

8. Environmental & Pollution Liability, Terrorism Insurance, Delay-in-Start-Up Insurance

Add-ons tailored to the project’s unique risks.

Who Benefits From OCIP Insurance?

For Owners/Developers

Cost savings: Bulk purchasing power means lower premiums.
Customized protection: Owners can design coverage to match project risks.
Simplified claims and administration: Single-point management streamlines enrollment, oversight, and claims handling.
Transparent costs: Owners know exactly what their insurance is costing, reducing hidden markups from contractors.

For Contractors & Subcontractors

Higher limits: Often more comprehensive coverage than they could obtain independently.
Simplified process: Rapid enrollment and less paperwork.
No need to track subcontractor insurance certificates.
Claims do not count against their own insurance record: Losses are processed solely through OCIP.

For Lenders & Investors

Assurance: OCIP compliance with loan prerequisites (especially Delay-in-Start-Up/DSU coverage).
Reduced risk: Fewer disputes over policy gaps.

OCIP vs. CCIP: What’s the Difference?

OCIP: Purchased by the owner/developer, covering all parties working on the project.
CCIP: Purchased by the general contractor, covers enrolled contractors/subs.
Rolling wrap policies: Extend OCIP or CCIP coverage across multiple projects for large organizations.

OCIP is usually preferred for larger and more complex projects, giving the owner maximum control over costs, claims, and coverage.

Advantages of OCIP Insurance

Lower Total Insurance Costs: By consolidating coverage, owners eliminate costly redundancies in premiums and broker fees.
Streamlined Claims Handling: Disputes over responsibility are minimized since all insureds are covered under the same policy.
Broader Coverage: OCIP can include limits and add-ons not available through individual contractor policies.
Control Over Coverage: Owners select the policy structure, limits, and included parties.
Better Risk Management: Owners can enforce stringent safety and loss prevention for all contractors.
Project-Specific and Tailored: Coverage time frame is customizable, with options to extend protection past completion.

Disadvantages & Challenges

Administrative Complexity: Owners invest time and resources into designing, enrolling, and managing the program.
Potential Coverage Gaps: Contractors need clarity on what is or isn’t covered, especially indirect costs, off-site work, and professional liability.
Initial Setup: OCIP should be finalized before project bidding to ensure contractors exclude insurance from their bids.
Some Contractors May Prefer Their Own Insurance: Especially those with large-scale experience or favorable terms.

With expert guidance from an experienced insurance agency, these challenges are easily managed.

Why Call Pacific Insurance, Inc. for OCIP Insurance?

Pacific Insurance, Inc. is an independent insurance agency specializing in customized coverage for complex construction projects. They are uniquely positioned to deliver OCIP solutions that maximize savings, minimize risk, and simplify every aspect of coverage management.

What Sets Pacific Insurance Apart?

Independent Agency: Pacific Insurance shops among multiple leading insurers to get you the best rate and coverage for your project.
Personalized Service: Every OCIP is tailored to the project’s location, size, risks, and stakeholders. Pacific Insurance ensures nothing is overlooked.
Decades of Expertise: Their agents bring a deep understanding of construction insurance, regulatory requirements, and market trends.
One-on-One Guidance: You’ll work directly with a dedicated agent, not a faceless call center. Pacific Insurance walks you through every step of program setup, contractor enrollment, coverage selection, and claims management.
Transparent, Comparative Quotes: Their approach keeps costs low, coverage robust, and administrative burden minimal.
Flexible Coverage Options: Construction, property, liability, workers’ comp, professional liability—Pacific Insurance bundles and structures coverage that fits your project’s exact requirements.
Commitment to Protection: Pacific Insurance is known for resolving claims quickly, advocating for clients, and ensuring continuous, uninterrupted protection.
Full Risk Assessment: From risk analysis to program design, Pacific Insurance considers every variable—so you get complete protection at the best possible price.

Frequently Asked Questions

Who should purchase OCIP insurance?
Owners, developers, or sponsors for large-scale or multi-phase projects, especially with multiple contractors. OCIP is ideal for projects where simplicity, uniform coverage, and cost savings are paramount.

How much does OCIP insurance cost?
Rates depend on project size, scope, location, and risk profile. Pacific Insurance shops policies to find the most competitive terms.

Can OCIP cover more than one project?
Yes, “rolling” OCIPs cover multiple projects under the same program, suited for entities like REITs or education systems.

What isn’t covered by OCIP?
Typically, commercial auto coverage, contractor surety bonds, off-site contractor activities, and some indirect costs. Pacific Insurance helps identify and address these gaps.

Get OCIP Insurance Help from Pacific Insurance, Inc.

Choosing OCIP insurance can be complex, but with the right guidance, it streamlines risk management and saves significant costs. For a tailored OCIP solution, transparent quotes, and dedicated expert service, reach out to Pacific Insurance, Inc. today.

Contact Pacific Insurance, Inc. at (801) 561-5550 to discuss your OCIP needs, compare options, or request a custom proposal.

With Pacific Insurance, you get more than an insurance policy—you get a partner focused on your project’s long-term financial health and risk protection. Insure your bright future with confidence and peace of mind.

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