When you have overall responsibility for a major construction project, the key word for you is ‘control’. Owner-controlled insurance programmes (OCIPs) give you control over all of your insurance as well as helping you to control your costs, your relationships with lenders, and your claims

These days, most construction projects around the world are insured on an owner-controlled or ‘wrap-up’ basis – especially on projects with a number of contractors and sub-contractors. Previously, it had been left to the contractors to arrange insurance for the construction phase, a situation which project owners (and their lenders) often found unsatisfactory.

Alesco RMS will arrange an OCIP built around your own construction project. You’ll have access to our wide team of industry specialists for pre-advisory work, and we can even negotiate with your lenders. And thanks to our close relationships with underwriters, we’ll secure the right cover for you, in the right markets, at the right price.

Why owner-controlled insurance?

If you own a construction project, you’ll be liable if your insurance doesn’t protect your project’s assets, liabilities and potential revenues. So how comfortable would it feel to delegate responsibility for your insurance to a contractor? They don’t know your business or your project as well as you do, and there’s always a risk they may cease trading. That’s why more and more businesses are choosing owner-controlled insurance programmes (OCIPs), especially where the project is large, complex or commercially sensitive.

The key benefits of an OCIP

  • Cost-effectiveness – An OCIP will ensure you have the cover you need for the entire life of the project, at a known and protected cost.
  • Correct cover – A well-constructed OCIP avoids over- or under-insurance, and will be sourced from the most appropriate underwriters. You won’t need to review and renegotiate your cover every year.
  • Compliance – You’ll have peace of mind because your lenders will know you comply with their requirements.
  • Control – Being in control is crucial. You won’t risk your cover being withdrawn part-way through term, or the wordings changing with each annual review. You’ll be able to manage any claims, and do your best to minimise their cost. You’ll also be able to manage any potential threats to your reputation.

Do you prefer to be in control?

With an owner-controlled insurance programme, you can have more control over:

  • Your relationship with your lender/s (who may take a dim view of contractor-arranged insurance, or even insist upon an OCIP)
  • The types and levels of cover
  • The quality of your insurance (insurer ratings, etc)
  • Your policy wordings
  • Any extensions you may need to add to your cover (such as delayed-start-up cover)
  • The cost of your cover, and your budgeting.

Our clients

We work with a huge range of clients involved in construction, all over the world, from massive projects like Crossrail to smaller, private projects. And because no two construction projects are the same, we’re extremely knowledgeable and very flexible in our approach. Alesco RMS understands different countries’ legal and banking requirements, and the differences in risk exposure depending on the territory’s climate/weather, favoured building methods and materials, political and security landscape, and more.

We arrange OCIPs for a variety of construction projects including major infrastructure, bridges, transport tunnelling, theatres and cinemas, student accommodation, retail malls, hotels, and substantial basement extensions.

What does an OCIP include?

An owner-controlled insurance policy is a combined programme of contractor’s all-risks (CAR) and third-party liability (TPL) insurance, and often also includes delayed start-up (DSU) cover. It is purchased by the project owner, or sponsor, and covers all parties for a range of risks. If it includes DSU, then it also covers you, the owner, for any delay in the project’s delivery.

However, an OCIP doesn’t release your contractor/s from their normal contractual responsibilities; they should insure their own plant and equipment, carry their own professional indemnity (PI) insurance, and cover their own motor vehicles and people.

What might the package include?

You’ll have the significant advantage of access to the experience and advice of the entire Alesco RMS team, which includes specialists in a wide range of sectors (such as mining and ports & terminals), construction methods (such as tunnelling) and types of insurance, including:

  • Contractor’s all-risks insurance
  • Third-party liability insurance
  • Environmental liability cover
  • Project professional indemnity cover
  • Delayed-start-up insurance
  • Construction plant (we can often offer a more competitive deal than your contractors will be able to get)
  • Cover for financial exposures.

Please get in touch

If you don’t have an OCIP but like the sound of them, let’s start a conversation. Our key contacts are listed below.

View our glossary of insurance terms

Owner Controlled Insurance Programmes Key Contacts