Benefits and Detriments of Owner Controlled Insurance Program (OCIP) on Construction

There is an insurance requirement on all construction projects for the general contractor and the subcontractors at all levels. There is a cost associated with this insurance. The insurance companies charge the contractor a fixed percentage of the construction cost based on their past safety history and project complexity. If there are reasonable precautions taken and safe operation performed, this insurance becomes preventive. However, the premium remains unchanged. For the past 15 years, all owners in the construction industry have been putting extra emphasis on safety and the injury. Claims have been low because of implementation of safety training program and on-site safety officer. Number of incidences has gone down. Owners have started an “Owner Controlled insurance program (OCIP)” on some construction projects. This paper will present the pros and cons of this type of insurance.

Language

  • English

Media Info

  • Media Type: CD-ROM
  • Pagination: 3p
  • Monograph Title: 2007 Proceedings Rail Conference

Subject/Index Terms

Filing Info

  • Accession Number: 01051628
  • Record Type: Publication
  • ISBN: 1931594260
  • Files: TRIS
  • Created Date: Jun 13 2007 11:25AM