Owner Controlled Insurance Policy

What Does Owner Controlled Insurance Policy Mean?

An owner-controlled insurance policy is a type of insurance in which a single party obtains coverage for all or the majority of individuals working on a construction site for a specific project. This includes regular construction staff, contractors, subcontractors, and any other personnel present on-site at any given time.

Such policies are commonly known as “wrap-ups.”

Insuranceopedia Explains Owner Controlled Insurance Policy

Purchasing an owner-controlled insurance policy helps reduce the owner’s exposure to risk. Even smaller construction sites often involve numerous personnel performing various tasks, frequently using heavy equipment or working at heights. These conditions create significant hazards, making such sites particularly prone to losses.

Owner-controlled insurance policies simplify the insurance process by consolidating multiple types of coverage into a single policy, such as commercial general liability and workers’ compensation coverage. Because injuries on a job site can lead to claims from people employed by different subcontractors, owners typically prefer to roll project-wide workers’ compensation coverage into the program rather than rely on each subcontractor’s separate policy. Smaller contractors who fall outside an OCIP still need to carry their own coverage, and the price of general contractor insurance depends on factors like payroll size, project type, and the level of risk involved in the work.