Successful construction projects are products of many details, including the right insurance policies. As building jobs near completion, insurance needs become more complex. Specific types of coverage have been developed for this period. One type is called CCIP, or a Contractor-Controlled Insurance Program, and the other is termed OCIP, or an Owner-Controlled Insurance Program. Exploring OCIP vs CCIP insurance is worthwhile.
Differences Explored and Explained
CCIP coverage at the end of a construction project is basically an extension of the responsibilities contractors are already carrying. This type of policy recognizes the strong abilities of contractors to effectively manage loss claims. Since they directly oversee site safety and procure materials, equipment, and workers, this type of policy is often a natural segue into the final stages of projects.
OCIP insurance, on the other hand, keeps control in the hands of owners. In both types of policies, however, owners are legally the sponsors and responsible parties for deductibles. Sponsors in OCIP policies take all the risks, even for a defined period after the project closes, until any claims are closed or buyouts are negotiated with insurers.
Each situation has specific conditions that dictate which policy will be beneficial to both owners and contractors. They should meet and discuss advantages and disadvantages of the two options. In an ideal arrangement, when money is saved, owners, as well as contractors, share savings with the other party so that all benefit from good business practices.