OCP (Owners, contractors protection coverage)

OCP (Owners and Contractors Protective) insurance, also known as Contractor's Protective Liability insurance, is a type of liability insurance that provides coverage for contractors, subcontractors, and project owners. It is designed to protect these parties from potential liabilities arising from construction projects. OCP coverage typically includes the following:

Bodily Injury and Property Damage Liability: OCP insurance covers claims or lawsuits related to bodily injury or property damage caused by the contractor's or subcontractor's work during the construction project. This includes injuries to third parties or damage to their property that may occur on the project site or as a result of construction activities.

Completed Operations Liability: This coverage extends beyond the project's completion and covers liabilities that may arise from defects or faults in the construction work after the project is finished. For example, if a contractor's faulty electrical wiring leads to a fire in the building after completion, the OCP policy would cover the resulting damages.

Legal Defense Costs: OCP insurance typically includes coverage for legal defense costs, including attorney fees, court costs, and settlements or judgments against the insured parties. This is particularly important as legal proceedings can be costly, and having insurance coverage can help mitigate financial burdens.

Additional Insured Coverage: OCP policies often allow project owners or other parties involved in the construction project to be added as additional insureds. This provides them with coverage under the contractor's insurance policy, thereby offering them protection against potential liabilities arising from the project.

It's important to note that OCP insurance does not cover the actual construction work itself or property damage or loss caused by faulty workmanship or defective materials. These risks are typically addressed through other insurance policies, such as builder's risk insurance or professional liability insurance.

OCP coverage is typically obtained by contractors or project owners to protect their interests during the construction process. The specific terms, conditions, and coverage limits of OCP insurance can vary depending on the insurance provider and the project's nature. It's crucial to carefully review and understand the policy's terms and exclusions to ensure adequate coverage for potential liabilities associated with the construction project. Consulting with an insurance professional or broker can help in obtaining the right OCP policy for your specific needs.