Authors: Shannon Gunderman Jackie Robinson
For public entities managing construction projects, an Owner Controlled Insurance Program (OCIP) can be an efficient way to improve insurance program oversight and administration.
An OCIP is worth considering when:
- There is a single multi-year project or a series of planned projects.
- Multiple contractors and subcontractors are involved.
- The owner wants greater control over coverage and claims administration.
- Legal or contractual conditions make traditional risk transfer less reliable.
- Long-tail liability or completed operations exposure is a concern.
An OCIP addresses these issues by placing the project under one coordinated program, creating a consistent framework for insurance and claims handling throughout the project.
Potential OCIP benefits for project owners
When structured and administered well, an OCIP can provide many benefits.
Cost predictability
Contractors are not duplicating project insurance in their bids, which can improve budget clarity.
Claims efficiency
A single program can reduce disputes and streamline claims handling.
Consistency
Enrolled participants operate under the same coverage terms and limits.
Extended protection
Coverage can continue through completed operations where appropriate.
Addressing legal constraints
In some jurisdictions and contract structures, owners can't rely fully on indemnification or contractor-provided insurance. An OCIP can reduce that uncertainty by establishing a unified coverage structure that better fits current legal and contractual realities.
Managing coverage gaps
Contractor insurance quality can vary widely, particularly for specialized exposures such as pollution or professional liability. A well-designed OCIP can establish consistent minimum insurance requirements, provide uniform protection and reduce gaps created by uneven contractor insurance programs.
For project owners, an OCIP can mean fewer surprises and better project-wide risk control.
How Gallagher supports OCIP implementation
Successful OCIPs require more than policy placement. They also depend on program design, contractor enrollment and claims coordination. Gallagher supports these activities across the life of the project.
Our in-house construction wrap administration services are an industry differentiator and support OCIP implementation through:
- Contract language and insurance manuals,
- Pre-bid and orientation meetings
- Subcontractor enrollment
- Bid credit instructions
- Certificate issuance and policy transmittal
- Project data management
- Enrollment reporting
- Review of off-site and non-OCIP certificates
- Contract closeout
We treat each enrolled contractor and subcontractor as a client while representing the owner's interests throughout the administration process to ensure successful outcomes. Our team has a strong history of consistent delivery and client satisfaction and is committed to administering each program in a way that exceeds expectations.
