Key Elements of OCIP (Owner-controlled Insurance Program)
Financial Risk Identification and Management
While crafting an OCIP, it’s vital to decide who will take on the project’s risk. The financial aspect of OCIP entails:
- The owner is responsible for the losses up to the program’s deductible and retains the savings made within the loss fund
- Actual losses/savings only become apparent after all claims have been settled
- Collateral or upfront payment may be required to avail of the program’s maximum loss fund
Strategic Planning and Program Selection
Once the risks have been identified, the sponsor (that is, the owner) chooses an insurance agent. Together they plan and design an OCIP that is ideal for the project. This involves:
- Negotiating the coverage terms, as well as limits
- Coordinating the transfer of risks across all OCIP documents
Administrative Work
The OCIP Administration team, which is often a Third Party Administrator (TPA) hired by the owner, handles daily questions, deals with the monthly paperwork, and signs up contactors into the Wrap-Up programs. OCIP administration entails:
- Deciding on insurers, coverage, deductibles, and retentions
- Developing all the contractual and insurance documentation
- Hiring an administrator, usually through the insurance agent who will work closely with the project’s contractors
Claims Management
To minimize the stress that comes with claims, as the project owner, you need to implement measures that will optimize your savings in the loss fund. As part of the claims management:
- The owner’s insurance broker and carrier will handle the claims
- The owner will participate directly in the claims process
- The defense counsel will be chosen as per the OCIP’s requirements
Benefits of Getting Your OCIP from Modab Insurance Services
Wrap-Ups aren’t just reserved for costly and large projects. The potential gains for all parties involved, makes OCIPs and the effort you put into crafting them, well worth it. With our customized OCIPs at Modab Insurance Services, you’ll have better cost and claim control, as well as enhanced and uniform coverage. Some additional benefits of getting an OCIP from us include:
- Collaborative approach to risk management – This is due to the collaborative nature of OCIPs, as these programs involve everyone in the project, from the owner to the trade contractors.
- Continual enhancement of processes – Our team will help you implement effective programs to improve your operational efficiencies, resulting in fewer accidents and lower claims.
- Future-oriented thinking – As the risks that come with an OCIP stay with you long after the completion of the project, this program will compel you to think beyond your day-to-day operations.
Some additional benefits of getting an OCIP from us include:
- Nationwide Coverage: No matter where you are located in the U.S., we work closely with top-rated carriers to help you get the right coverage for your construction project.
At Modab Insurance Services, our team of Wrap-Up insurance experts will work with you to craft an OCIP that addresses your precise needs. Contact us today to get started!