Construction insurance has changed a good deal over the past several years. Instead of requiring every contractor to supply their own insurance, the norm now is for all contractors on a project to be covered under one policy. This policy is called an OICP program or a wrap up. A wrap up has several advantages over the traditional insurance method, especially when you’re working on a large project. Every worker onsite has enough coverage and typically works in a safer environment, as site safety regulations are put into place. Insurance for professional liability and contractor default may also be added if they’re necessary for your project.
An OICP program allows your construction site to be more efficient, as everything from injuries to claims to loss control goes through only one carrier. This allows you to cut out lawyer’s fees for claims and to help your injured workers faster. Additionally, you usually have less litigation to deal with. You may also find that you save more when you opt for this type of policy, as it can typically be purchased for less than traditional insurance.
When you start a new project, you want to take all of your insurance choices into consideration. OCIP programs offer many benefits that you may find useful on your construction site. Look into your options to see what programs are available to your company.