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Building smarter using OCIP to minimize construction costs

June 11, 2019

Summer heralds the start of construction season in Alberta. With this comes the added risks of project over-runs, injuries, and other costs that are associated with a construction project. There are insurance products available that enable a construction project owner to protect their financial interests, along with liability of contractors, all under one policy. These products are known as Owner Controlled Insurance Program (OCIP).

Owner Controlled Insurance Program (OCIP) is purchased by property owners during construction or renovation of a property and covers virtually all losses including liability and construction site damages of all contractors and subcontractors while working on the project. The project owner, such as the municipality, purchases insurance to cover all contractors and subcontractors involved in a construction project. This means that the contractors and subcontractors do not have to purchase insurance policies for the said project for their respective work, resulting in a reduction of overall construction cost for the project owner.

There are a number of reasons for using OCIP including:

  • having a seamless claim resolution that is simpler, and quicker by using a single insurance carrier for the project 
  • making it easier to add small contractors who may not have adequate coverage or could not afford insurance costs thus supporting local small business and,
  • having the predictability of coverage compared to dealing with different types of policies through various contractors with varying degree of exclusions.

We offer higher limits and competitive premiums compared to the commercial market. Our OCIP covers the life of the project and an extended period past its completion for any liability losses as well as the ability to transfer the project to their general insurance program after substantial completion.

Email us at or call 310-AUMA with any questions about OCIP.