Why can’t every construction project use an OCIP or CCIP? There are three primary reasons these programs are not universally available. The first is project size. OCIP and CCIP programs require manual underwriting unlike standard contractor policies, they cannot be automatically rated. Carriers will only commit the time and analysis required if the overall premium volume is large enough to justify it. Small and mid-sized projects typically do not meet this threshold. The second is organizational sophistication. Under a wrap-up program, the carrier is shifting responsibility from individual subcontractors to the project owner or general contractor. That entity must already have robust internal risk controls, safety programs, hiring practices, and administrative infrastructure in place. Organizations that lack a dedicated risk management function are generally not eligible. The third is agent expertise. OCIP and CCIP products are designed for sophisticated buyers and require agents who have experience placing them. Many general insurance agencies are simply not equipped to access or structure these programs. When all three conditions are met: a large enough project, a sufficiently sophisticated organization, and the right agent…an OCIP or CCIP can deliver significant cost savings and coverage advantages.

What You’ll Learn:

In this episode of Talking Insurance with Shane, Shane Lipson — Managing Director and Certified Insurance Counselor (CIC) at Mt. Franklin Insurance — explains each of these qualifying factors in detail.

Get in Touch:

Starting your business the right way includes protecting it from the start. Contact Mt Franklin Insurance today to discuss your commercial insurance needs! Click here to get a quote.