Owners and Contractors Protective (OCP) Liability Insurance
Owners and contractors protective (OCP) liability coverage is usually purchased by general contractors or sub contractors for the benefit of the project owner or general contractor. The policy is designed to protect the project or general contractor who hires the contractor or subcontractor from liability for bodily injury or property damage that happens due to the actions of their contractor on this project. OCP insurance is job specific, is offered on an occurrence basis and should be in conjunction with – not in lieu of – the general contractor's general liability policy. Many project contracts now require that contractors purchase OCP coverage.
OCP Policy Coverage Features & Benefits
- Provides coverage to named insured project owners for liability for covered bodily injury or property damage arising from job-site ongoing operations being performed for them by the designated contractor. Also provides coverage for liability for that injury or damage arising from project owners’ acts or omissions in connection with project owners’ general supervision of such operations
- Coverage is provided on an admitted-market basis
- Typically provides dedicated limits for named insured project owner as the only insured under the policy
- Offers coverage limits up to $10 million each occurrence/$10 million aggregate (higher limits may be available)
- Includes duty to defend
- Defense expenses are outside the policy limits
Advantages of an OCP Policy For the Owner
OCP coverage provides project owners with additional coverage beyond what they may receive if they are named as an additional insured on a contractor's commercial general liability policy. OCP coverage helps to reduce the project owner's liability on a construction project and includes:
- Dedicated coverage limits specifically for the project owner
- Primary coverage for the owner without contribution from the owner's other insurance or the contractor's general liability coverage
Advantages of an OCP Policy For the Contractor
There are also benefits to contractors who obtain OCP coverage. For contractors bidding on jobs, providing OCP coverage can deliver a distinctive advantage over competitors. In addition, OCP coverage supports contractors by:
- Offering separate limits that are unaffected by the liabilities of other coverage
- Protecting the contractor from premium increases on a general liability policy when a loss is covered under the OCP policy
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Differences Between an OCP Insurance Policy and a General Contractors Insurance Policy
An OCP policy is different from a contractor's general liability policy in a number of ways.
OCP coverage is just for the single project and protects the project owner from liability caused by a specific contractor. Therefore, its coverage is very limited compared to a general liability policy. A contractor's general liability policy protects the contractor and the contractor's business from the costs of claims or liability for property damage or bodily injury.
Who is Covered by Owners and Contractors Protective Liability Insurance?
When a contractor purchases OCP coverage, the policy covers the project owner or general contractor named on the policy. The policy protects the named insured who hires the contractor from liability for bodily injury or property damage that happens due to the actions of the contractor on this project. Coverage does not protect the project owner or general contractor for claims that:
- Happen off of the job site as listed on the policy
- Happen once the contractor completes work at the site
- Are caused by the named insured's direct negligence, unless that negligence is due to acts of general supervision of the contractor
Owners and Contractors Protective Liability Coverage Application Submission Requirements
Only current Travelers Construction general liability policyholders are eligible to purchase OCP coverage. Our dedicated OCP/RRP unit has specialized knowledge and tools that can be put to work for these contractors who need to provide this coverage.
Owners and Contractors Service & Quoting
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For more information about our owners and contractors protective liability insurance, or other insurance coverage for the construction industry from Travelers, please contact an independent Construction insurance agent, broker or surplus lines broker.