OCIP – Wrap Up

If the project is really large you may want to think about insuring the project in phases. This can allow more limits to be purchased at not much more in pricing. Example: A 200 unit Condo could cost $1.8MM for a $2MM limit. But if you split the project in half a 100 unit condo project could cost $1MM for a $2MM limit. You now have twice the limits and not much more in pricing.

Our recommendation is to have a reputable OCIP Consultant review the OCIP contract wording prior to the commencement of the OCIP.

Offsite work is typically excluded from an OCIP. Offsite exposure needs to be addressed with each Carrier prior to the commencement of the OCIP to determine if the offisite exposure can be added to the policy. We have created a product to help with this gap. Contact your Crouse producer and ask about our OCIP Gap product.

Peer Review is an outside service that documents the building process with photos and reports on various phase of the project. In addition they can provide pre-plan inspections, field training for supervisors and post inspections to assure proper maintenance and protocol. The approximate cost is $550 per unit. The cost is at the insured’s expense.

The insured has the opportunity and ability to allocate the premium being charged back to the OCIP members. This needs to be written into the OCIP contract and agreed upon prior to the bidding process.

There are several methods used for premium allocation:

1. use the subs rate on his current GL policy
2. use industry standard rates
3. flat charge

SB800 can extend the time allowed by law to file a suit. Each policy handles the reporting period different and this should be explained to the insured so they understand how long the Insurance Carrier will respond to losses.

Currently most carriers are comfortable providing a 3 year policy term but longer terms are available and should be negotiated prior to binding. Carriers are typically agreement to extending the policy should the project not finish on time and expect to have an additional premium to do so.

A qualified TPA will be needed. The insured will have to enter into a contract with the TPA to handle claims within the SIR. Some make nominal charges for setting up the account and other do make any charges until services are needed.