As a subcontractor, you’re used to getting your own insurance for every project you work on. However, what if there was an option that automatically included you in the policy? An OCIP, or owner controlled insurance program, covers every contractor and subcontractor under one policy and includes your worker’s compensation and liability. This may allow you to settle injuries or disputes more efficiently because a mediator doesn’t have to contact your individual insurer.
Using this type of policy may actually help you get more construction jobs, as it removes some of the risk of litigation on certain residential projects, making it safer for you to bid on them. There are perks besides this, however, to being covered under an OCIP. Site safety programs are usually in place so that accidents can be avoided. You’ll also find that your rates won’t increase during the project and that the umbrella limits are higher than what you might find otherwise.
Typically, you’ll have to show a certificate of insurance so that the group you’re working with knows that your company can be insured. However, this certificate may also show that you’re covered for any off-site work that may be required. As you look for insurance for your next job, keep an OCIP policy in mind. This might provide the peace of mind you need for bigger jobs.