Risk management practices are older than the building of Babylon (Hammurabi Code 1780 B.C.). However, the comprehensive risk management program which protects the Owner’s budget, known as an Owner-Controlled Insurance Program (OCIP), has only been available in the market place for about 20 years. “Wrap-ups”, as they are also called, were originally thought to be available only for projects in excess of $100M. Now, smaller projects of $30M or more are good candidates for OCIP benefits in today’s marketplace mainly due to the economy driving down pricing. An OCIP’s hallmarks are its cost-effective, broad coverage for every enrolled Contractor, subcontractor, and some vendors (typically those who perform work on the job site); its safety record and reduced lost time due to injury; its reduced litigation between insured Contractors; and its responsible and financially reliable insurers which stand behind the coverage for the years before, during, and after the project is...
