OCIP for Capital Projects

Take Control Of Your Risk

Many Owners of major capital projects rely upon the General Contractor to arrange and pay for the insurance for the course of construction and liability risks that a project can attract. Although this may be viewed as a risk mitigation and risk transfer tool what happens if the Contractor is no longer on the project due to bankruptcy, serious default, cessation of business operations or for any other reason? How difficult will it be for the Owner to place insurance on the project that is partially complete? What will the costs be and how complicated will the claims process be should a loss occur that may be attributable to the initial contractor’s activities on the project?

• Owner not contractor is in control of the insurance program
• Potential for significant cost savings
• Ability to ensure adequate insurance is obtained and maintained
• Risk mitigation and good risk management practice
• Continuity of insurance in the event of contractor insolvency

What To Look For

Lýseis has worked with Owners, their Brokers and Contractors to assist in the negotiation and placement of the requisite Builders Risk and Wrap Up Liability insurance as well as other specific coverages necessary for the protection of the project and any risks arising from it. OCIPS not only provide Owners with control over the project’s insurance program, it is also an excellent risk mitigation tool as well as assisting Owners in achieving budget reductions. Lýseis has successfully achieved significant savings on major projects by assisting with the project insurance negotiations and OCIP placement on behalf of the Owner with the contractor and the Owner’s insurance broker.