Owner's Control Insurance Program

What does it cover?

The Owner Controlled Insurance Programs (OCIPs) are designed to provide owners or prime contractors with specialized environmental coverage and program management control they need for an entire project. The OCIP policy ensures each contractor has the needed environmental liability and policy limits of insurance for the project. OCIPs can include environmental liability coverage for off-site transportation and exposures at non-owned locations.

Cost and applications:

• Premiums start at $100,000.
• Deductibles start at $25,000.
• Limits are available to $25,000,000.
• A complete submission should include 1) an application, 2) copies of GC and subcontractor agreements, 3) construction values and 4) name of the project GC and a list of subcontractors.

Claim Scenarios

NOTE: The claims scenarios summarized are offered only as examples. The examples are not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.

1. An environmental contractor was hired to clean-up a contaminated site. The cost of clean-up was estimated at $10,000,000. A subcontractor involved in the remediation punctured a underground tank filled with hazardous chemicals resulting in the release of the materials on the site.

Outcome - The primary environmental contractor was held responsible for the additional cost of $120,000 for clean-up of hazardous materials released from the underground tank caused by the sub-contractor. Since the primary environmental contractor had an OCIP, coverage was available.

2. The insured shoring contractor was hired to install the shoring anchors as part of a high-rise condominium project. The shoring anchors were to be installed at a specific angle to avoid damaging any underground utilities. The city's sewer main had been turned off during the anchor installation. When turned back on, it was discovered the sewer main was leaking as a result of being punctured by the anchors. It was discovered that the anchors were installed at a much shallower angle than specified.

Outcome - Since the condominium owner purchased an OCIP, the policy paid just over $100,000 for environmental clean-up.

Optional coverage enhancements:

• Assistance by an outside consultant concerning liability and contract issues.
• Multi-year completed operations coverage and extended reporting periods.
• Available for a single-site project, multiple-site projects and/or progressive remediation/maintenance projects that respond to daily or monthly facility needs.
• Pollution conditions from transported cargo.
• Pollution conditions at non-owned disposal sites.

Examples of who buys?

• Property Owners with an Environmental Remediation Project.
• Prime Contractors or Consultants on an Environmental Remediation Project.