Bridging the gaps for developers
At Bridge, we know that every building project is unique.
It’s vital that developers know the different alternatives that are open to them when insuring their project, which is why we want to tell you all about OCIPs – Owner Controlled Insurance Programmes.
With an OCIP, the developer or site owner is in control and is covered comprehensively for liability and loss. An OCIP covers a range of risks, from a delay in start-up to acts of terrorism and means all knowledge about the policy – the excess, costs, cover and duration – lies with the developer, as opposed to the contractor.
OCIPs can be tailored to your project, and your needs and premiums are agreed at the outset to deliver complete transparency. Sites are still insured without the subrogation issues that can arise under the traditional insurance proposition.
Put simply, OCIP is a modern insurance solution for complex construction and remediation works. And it works at every level.
Traditionally, it has been the contractor that had overall responsibility for the various insurance policies of a building project. If, for any reason they are unable to continue with the project you would be:
- Exposed
- Looking for new insurance
- Covering all claims costs
- Potentially postponing or mothballing projects
- Losing money
An OCIP is newer, comprehensive, bespoke insurance cover. It’s specifically designed for your project and keeps YOU in control.
Latent Defects Insurance
If you are involved in property development – whether that’s building new properties, converting or refurbishing existing ones – then Latent Defects Insurance (LDI), usually known as a structural warranty or building warranty, is often a necessity. Why not let Bridge manage your LDI too. We take extra care to ensure we partner with insurers that are reputable; with a financial strength and ability to meet their ongoing insurance policy and contract obligations, recognised by lenders as ‘A’ rated or above. Click here for more information.
Frequently Asked Questions
Read on to find out how you can save costs, keep control and continue your development.
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An Owner Controlled Insurance Programme (OCIP) is an arrangement whereby the owner of the property (employer) takes control of the arrangement and purchase of certain insurances in connection with a construction project.
It offers a wide range of cover which can include:
• Existing structures
• The contract works
• Hired in plant
• Owned plant
• Loss of profits (also known as delayed start up)
• 6.5.1 non neg liabilities
• Terrorism
• Environmental liability
• Public and property owners liability- and cover can be extended not only to the site owner but also the contractors involved.
• The Employer can tailor the policy to cover all appropriate parties, as opposed to several potentially disjointed arrangements.
• Adaptable to changes in the project such as increased values and extensions of the period.
• Non-cancellable policy for the duration of the project.
• Helps eliminate unknown exposures arising from inadequate insurance provided by contractors.
• No uninsured contracts or coverage loopholes.
• Streamlined interface between construction and handed-over works.
• Employer retains control of insurance market security
• Facilitates purchase of cover for existing structures and delay in completion coverage.
• Facilitates a uniform and disciplined approach to risk management
• Allows efficient management of phased handovers.
• Employer retains control of insurer selection –important for long term projects.
• Streamlines project administration –no need to check and re-check contractors’ insurances
• Known and fixed insurance cost at the outset.
• Employers achieve benefits of bulk purchase of insurance in terms of premium costs, coverage and reduce administration costs.
• Employer can ensure that financiers’ requirements are satisfied – OCIP is a financier’s preferred approach.
• Certainty that premium is paid and that insurances are current.
• Avoids duplication of insurances and can save premium for the project.
• Eliminates overhead and profit loadings by contractor.
• Not affected by insolvency of a project partner or removal of contractor from the project.
All parties enjoy joint insured status so there are no subrogation issues when it comes to claims, which helps eliminate claims between contracting parties and promotes a “no blame” culture. The site owner has direct access to insurers for claims matters and claims monies are paid direct to them.
For more information:
If you’d like more information on an Owner Controlled Insurance Programme, please complete our form below and we’ll get back to you as soon as possible.
Alternatively, if you’d like to learn more about OCIP or Bridge’s expertise in the Real Estate, Property and Construction sectors please contact:
Carrie Arnold
Bridge Real Estate
0161 234 9349
[email protected]
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