Construction OCIP/CCIP Insurance Programs: Potential Coverage Gaps and Other Coverage Pitfalls

Strafford Publications, Inc. Live Webinar

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DATE: Tuesday, April 5, 2016

TIME: 1:00 PM - 2:30 PM

Owner controlled insurance programs (OCIPs) and contractor controlled insurance programs (CCIPs) are designed to reduce costs on construction projects and provide owners and contractors more control over risk management.  Once the province of very large commercial contracts, these wrap programs have become more common in recent years, partly due to the increase in construction defect litigation.

While designed to include owners, general contractors, and subcontractors under one insurance program, there can be coverage gaps and other coverage pitfalls with wrap policies, especially if the programs are not set up and implemented carefully.

Key issues include the proper enrollment of subcontractors, the interplay with CGL and workers' compensation policies of both the sponsor and the subs.  Without careful consideration to "other insurance" provisions in wrap policies and other standard policies of the parties, the goal of having the wrap policy be the primary policy may be frustrated.

Our panel will analyze some of the coverage gaps and other coverage pitfalls inherent in OCIP/CCIP policies and practical steps that the wrap sponsor and subcontractors can take to prevent or limit risk exposure.

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