What is an Owner Controlled Insurance Programme?

OCIP London

Construction and re-development projects are often highly complex and require a seamless approach to management from start to finish. The same approach should be adopted by Property Owners when it comes to the insurance of the project. An ‘Owner Controlled Insurance Programme’ (OCIP) provides the necessary level of protection for the Property Owner throughout the development, and incorporates all of the insurance requirements under one umbrella policy.

In the past it was usual for the Property Owner to require bids from contractors to include insurance. As contracts were awarded, the main contractor would ensure that all liabilities under the contract were covered including those applicable to any sub-contractors who were to be engaged in the re-development work.

Each OCIP is tailored to the project in hand and the Insurances available include:

  • Contractors All Risks Insurance extending to all contractors and subcontractors involved in the development
  • Buildings Insurance to cover the existing structure where applicable
  • Public & Product Liability Insurance
  • Latent Defects Insurance ( faulty or defective workmanship ,design or materials)
  • Advanced Loss of Profits/Delay In Start Up Insurance ( covers anticipated revenue)


The main advantage of arranging an OCIP is that all insurance requirements can be brought together in an integrated solution tailored to the needs of all parties involved in the redevelopment programme. The OCIP is arranged for the duration of the redevelopment project and as such any issues with annual insurance premiums is avoided.

In addition the OCIP gives increased control and cost effectiveness to the Property Owner who can ensure that the right amount of cover is in place and satisfy any lender requirements, rather than relying on third parties to make their own arrangements which may or may not be appropriate. Arranging all necessary insurance under one programme will clearly allow for consolidation and consequently best value to be gained.

With the OCIP in place any claims can be managed consistently within the insurance programme avoiding any complication with liability being unclear due to the complexity of arrangements in place.