Can OCIPs include coverage for off-site fabrication facilities? What are the pros and cons of doing so? And what requirements would need to be met in order for an off-site fabrication facility to be covered by an OCIP (for example, fully dedicated in terms of location/time/payroll to project owner)?
Cynthia from California
Cynthia, OCIPs and CCIPs traditionally do not provide coverage for off-site fabrication facilities. The mere definition of a wrap-up states that coverage is provided for onsite operations only. The primary reason for this limitation is control. Control over the safety of the site and the workers, thus limiting claims (hence the name owner controlled and contractor controlled insurance programs). However, times are changing, and the wrap-up industry is going to have to keep up. More and more materials for construction projects are being fabricated offsite, then pieced together like legos at the project site. In some instances, a warehouse or factory is built adjacent to the jobsite for ease of transport and convenience. In instances such as these, it would be wise to add the warehouse/factory as a location on the policy and capture that exposure as part of the wrap-up.
Learn more about wrap-ups on our resource page: Wrap-Up FAQ page
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