An OCIP sponsor has greater insurance purchasing power than individual contractors and subcontractors, making them better equipped to procure a quality, efficient, and cost effective insurance package for all parties engaged at the project site. Greater purchasing leverage means better coverage for the entire project and higher limits.
Why are higher limits so important?
Imagine you are the owner of a large project that experiences a heavy loss. After your subcontractors’ insurance limits have been reached, there are remaining damages. These costs fall upon you, the owner, to cover. With a wrap up, your potential financial risk is managed more effectively. A wrap up protects you and your project because an OCIP/CCIP offers very high limits of insurance, all 100% dedicated to the construction activities at your project site(s).
