Yes. This cover provides insurance protection to repair/replace damaged property even if the contractors and/or professional team are no longer trading.
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By taking out an owner controlled construction insurance programme and engaging with the right broker to get competitive cover, you can spend more time on what matters to you.
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What's included in an OCIP?
Your owner controlled insurance programme can include:
- Contract works - all risks of physical loss or damage.
- Existing property - all risks or specified perils to the retained/existing structures.
- Increased costs - cover for increased costs on the works/or works not complete after damage.
- Delay in start up - includes loss of rent, profit and interest after damage to the works.
- Public liability - cover for owner/employer/project manager only.
- Non negligence JCT 6.5.1 - cover for all parties can be arranged if this clause is applicable in your construction contract.
We work with legal advisors to ensure that the insurance clauses within the contract clearly reflect the construction insurances that will be arranged within an OCIP to avoid any confusion in the cover provided and duplication of insurance costs. This includes funder requirements such as coinsured and first loss payee.
Features and benefits of an OCIP
Commercial
- No uninsured contracts or coverage loopholes.
- Can protect owner’s liabilities where contractors’ are limited.
- Non-cancellable policy for the duration of the project.
Financial
- Owners achieve benefits of bulk purchase of insurance in terms of premium costs, coverage and reduced administration costs.
- Avoids duplication of insurances and can save premium for the project.
- Owner can ensure that financiers’ requirements are satisfied – OCIP is a financier’s preferred approach.
Claims
- All parties enjoy joint insured status – no subrogation issues.
- Helps to eliminate claims between contracting parties – promotes a “no blame” culture.
- Claims monies are paid direct to the owner.
Frequently asked questions
Contract works insurance protects your ongoing works on a project site. In the event of an unforeseen incident - such as a fire or flood - this cover means the work you are legally responsible for completing can be reinstated to the same stage before the damage occurred.
General liability refers to public liability cover. This cover protects if your client or a member of the public suffers an accidental injury or accidental property damage resulting from your work. It's not a legal requirement to have public liability. However, this insurance will cover legal defence costs and compensation costs should you find yourself facing a claim against you.
The idea behind the cover is to protect items and works in progress that belong to you, or for which you are legally responsible.
A 'contractors all risk' insurance policy typically includes cover for:
- contract works
- hired in plant
- tools
- employees' tools
- your own tools and plant.
You can select suitable covers for your business. If you're not sure, always refer to your insurance adviser, who will recommend which cover your business needs.
There are a variety of covers available in the insurance market, and trying to determine what you need can be tricky and at times confusing. Legally speaking contractors with employees will need to have Employers Liability in place to operate. It is recommended that you have Public Liability cover in place, and if carrying out any work that includes professional advice, then Professional Indemnity cover as well. Some contracts (with local councils for example), may also be subject to having specific levels of indemnity especially for Public Liability and Professional Indemnity. Other insurance considerations might include; Tools cover, Hired in Plant (if not covered elsewhere), plus Contract Works, Directors and Officers insurance, Legal Expenses, and Buildings and Contents for any premises you may have.
Contractors are experts in specific fields, and with this responsibility comes exposure to risks. If you are found responsible for delivering inadequate advice or services that result in a financial loss to your client, contractor professional indemnity insurance (PII) for contractors will offer protection, should compensation be payable. PII It will also cover any legal costs incurred while defending the claim.
Although we recommend purchasing cover prior to the commencement of the construction project, some insurers are willing to provide cover on partially completed and/or completed structures. However, premiums will be higher.
Whatever you do in the sector, our experience enables us to negotiate competitive insurance and risk management solutions focused on your needs.
The sectors we can cover are:
- Biomass systems
- Anaerobic digestion and biogas
- Hydro facilities
- Geothermal
- Battery energy storage systems (BESS)
- Combined Heat and Power Units
- Solar panel farms (roof and ground mounted)
- Wind farms (on-shore and off-shore)
- Waste to energy
- Electric vehicle charging points
- Transport
As well as public liability and professional indemnity insurance, as previously explained, you may need employers liability insurance if you employ staff. This insurance is a legal requirement for limited companies and covers your if an employee is killed or injured as a result of their work.
Accidents happen; every day, your business is exposed to risks that may cause injury to the public, your customers and anyone visiting your site, as well as property damage. You need to protect yourself against third-party claims arising from these situations. Public liability insurance will cover legal defence costs and compensation costs should you find yourself facing a claim against you.
Amongst the dangers you face are falling tools or masonry that could potentially cause harm to people or damage to vehicles, accidentally drilling through water pipes causing major damage, and furniture or flooring becoming damaged or stained due to heavy equipment or corrosive materials. Our builders insurance policy will offer protection for:
- your vehicles and plant - including the items you hire or loan in or out
- loss or damage to your property, contract works, and materials on site
- timber-framed properties in the course of construction.
An OCIP approach allows the owner to take a proactive view on the risks and the availability of mitigation solutions, including insurance. Other insurance products you might consider will vary depending on the location and the nature of the project. They might include:
- Rights of light cover.
- Latent defects cover.
- Contingency covers including chancel liability, defective title and restrictive covenant.
- Environmental impairment liability.
- Marine cargo/transit insurance.
