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

This CLE course will analyze some of the potential coverage gaps and other coverage pitfalls possible in owner-controlled insurance programs (OCIPs) and contractor-controlled insurance programs (CCIPs) policies. The panel will address practical steps that the wrap sponsor and subcontractors can take to prevent or limit risk exposure and maximize coverage.

OCIP and CCIP policies 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 forms of wrap insurance programs have become more common, 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 and the interplay with CGL and other insurance policies of both the sponsor and the subs. Without careful consideration of the policy forms, e.g, manuscripted endorsements, "other insurance" provisions, etc., the goal of optimizing the coverage from the intended insurance program may be frustrated.

Listen as our authoritative panel of insurance attorneys analyzes coverage gaps and other pitfalls that may arise in OCIP/CCIP policies. The panel will discuss practical steps OCIP/CCIP sponsors and subcontractors can take to prevent or limit risk exposure and maximize coverage.