Owners and Contractors Protective (OCP) Liability Insurance
What is an OCP insurance policy?
Owners and contractors protective (OCP) liability coverage is usually purchased by general contractors or subcontractors 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. This protection is for liability due to bodily injury or property damage that happens as a result of actions of their contractor on the project. OCP insurance is job-specific and offered on an occurrence basis. It 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 and benefits
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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. It also provides coverage for liability for injury or damage arising from the project owners’ acts or omissions in connection with the project owners’ general supervision of such operations.
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Coverage is provided on an admitted-market basis.
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Typically provides dedicated limits for named insured project owner as the only insured under the policy.
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Offers coverage limits up to $10 million each occurrence/$10 million aggregate (higher limits may be available).
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Includes duty to defend.
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Defense expenses are outside the policy limits.
Advantages of OCP coverage
Advantages of an OCP insurance policy for the project 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:
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Dedicated coverage limits specifically for the project owner.
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Primary coverage for the owner without contribution from the owner's other insurance or the contractor's general liability coverage.
Advantages of an OCP insurance policy for the contractor
There are benefits to contractors who obtain OCP coverage. For contractors bidding on jobs, providing OCP coverage can deliver a distinct advantage over competitors. In addition, OCP coverage supports contractors by:
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Offering separate limits that are unaffected by the liabilities of other coverage.
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Protecting the contractor from premium increases on a general liability policy when a loss is covered under the OCP policy.
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:
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Happen off the job site premise as listed on the policy.
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Happen once the contractor completes work at the site.
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Are caused by the named insured's direct negligence, unless that negligence is due to acts of general supervision of the contractor.
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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 this coverage.
Owners and contractors service and quoting
Travelers' goal is to provide 24-hour turnaround time and superior service.
For more information about our owners and contractors protective liability insurance, or other insurance coverage for the construction industry from Travelers, contact an independent construction insurance agent, broker or surplus lines broker.
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