Construction projects can often be long and involved processes. While a traditional insurance policy is likely to cover the period of time where a building is being actively worked on, it might not extend to include the wrap period. This is why wrap-up policies can be an important option to consider. Organizations involved with the construction of complex projects usually add this type of policy in order to stay protected in an array of common scenarios.
Advantages of OCIP
Understanding wrap insurance is quite straightforward. The most common type of policy in this category is an Owner-Controlled Insurance Program or OCIP. Accidents are quite common in the construction industry. In fact, annual reports suggest that a vast majority of workplace-related deaths occur on construction sites. In some of these situations, the accidents took place during wrap periods where the worker was no longer insured. With an OCIP, you have control over details that extend the coverage until the job is truly complete. Benefits include:
- Better control over the budget
- Improved conditions of safety for workers
- Reduced risk of litigation and other consequences
Evaluate Your Risks
Whether you opt for an OCIP or a Contractor-Controlled Insurance Program, giving yourself ample time to review your choices can be invaluable. Determine the best fit for your future and take action right away to keep your employees protected.