OwnerControlled Insurance Program

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• Owner-Controlled Insurance Program
• (OCIP)
• Frank J. Ferrano, PE
• Acceler8 Construction Services Manager
• October 2006

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Owner-Controlled Insurance Program(OCIP)

• Insurance Bid Requirements
• Participation is mandatory for all contractors
  and subcontractors of any tier.
• Contractors shall include in its bid, cost for
  insurance as set forth in the contract. Upon
  award, the selected contractors will be required
  to complete OCIP enrollment forms.
• The contract amount will be reduced by the amount
  of the OCIP insurance deduct to reflect the
  adjusted gross bid.

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Owner-Controlled Insurance Program(OCIP)

• Coverage includes
• Workers Compensation
• Employers Liability
• General Liability
• Excess Liability
• Coverage does not include
• Builder's Risk
• Professional Liability
• Environmental/Pollution Liability
• Automobile Liability
• Equipment Floaters
• Bonds

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Owner-Controlled Insurance Program(OCIP)

• Applicability of the OCIP
• Participation in the OCIP is mandatory but not
  automatic.
• Contractors not enrolled in the OCIP shall be
  required to maintain their own insurance.

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Owner-Controlled Insurance Program(OCIP)

• Eligible Contractors
• Includes contractors of all tiers that provide
  direct labor on the construction project.
• Temporary labor services and leasing companies
  are to be treated as subcontractors.

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Owner-Controlled Insurance Program(OCIP)

• Ineligible Contractors
• Consultants
• Asbestos-removal and abatement contractors
• Suppliers and vendors
• Material dealers
• Guard services and janitorial services
• Truckers

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How does it affect the contractors?

• The OCIP will have a positive impact on a
  contractors workers compensation rate for their
  other work (experience modification factor
  improvement).
• The OCIP provides/makes available to the
  contractor a coordinated comprehensive safety and
  loss prevention support and resources.
• The OCIP brings immediate claim management
  resources to injured workers. This truly reduces
  contractors time involved in non-construction
  activities.
• The OCIP eliminates cross-litigation among
  contractors, which eliminates potential project
  delays and cost overruns.
• The OCIP eliminates significant financial risk
  currently borne by contractors. The MCIP
  eliminates contractors upside risk which all
  individual contractors face in regard to
  insurance premium increases which may occur after
  beginning a new project.

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Owner-Controlled Insurance Program(OCIP)

• Contractor responsibilities include, but are not
  limited to
• Obtain OCIP enrollment before any work begins.
• Compliance with applicable safety program,
  administrative procedures, and claim procedures.
• Complete administrative forms.
• Attend periodic meetings regarding administration
  of the OCIP.

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Owner-Controlled Insurance Program(OCIP)

• Summary
• Participation in the OCIP is mandatory but not
  automatic.
• Obtain OCIP enrollment before any work begins.
• Compliance with applicable safety program,
  administrative procedures, and claim procedures.
• The contract amount will be reduced by the amount
  of the OCIP insurance deduct to reflect the
  adjusted gross bid.

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Owner-Controlled Insurance Program(OCIP)

• Additional Information
• www.evergladesnow.org

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Owner-Controlled Insurance Program(OCIP)

• Thank you for attending!