owner controlled construction project insurance

Take control of your construction project insurance programme

An owner controlled insurance programme (OCIP) is an arrangement where the owner, or employer, arranges and purchases certain insurances for the construction project. An OCIP solution can:

  • Fill the gaps in a contractor arranged insurance policy
    By insuring against risks not catered for by the contractors’ programmes, such as delay in completion.
  • Reduce the administrative burden of insurance
    With a tailored policy which covers all appropriate parties, as opposed to several potentially disjointed arrangements.

  • Provide total control of the premium, scope of cover and claims management
    Which can help satisfy the requirements of financiers, simplify the claims process and deliver transparent premiums as you’re not reliant on contractor charges.

Improve your construction cover with an OCIP. Stay in control of the policy, manage the costs and help ensure claims are paid directly to you.

Developers of Great Britain, we're ready to get to work with you

By taking out an owner controlled construction insurance programme and engaging with the right broker to get competitive cover, you can spend more time on what matters to you.

What are you looking for in your construction insurance partner?

Big enough to keep you safe. As part of a world-leading insurance group, Marsh & McLennan Companies, we’re a family with over 35,000 colleagues operating in more than 130 countries.

Small enough to care. A proud UK community broker with a local branch network the length of the country. Join a family of over 19,000 construction clients who have been supported by our 25+ years' involvement in the construction insurance industry.

If you need us on site at 7am, we’ll meet you there. 

What's included in an OCIP?

Your owner controlled insurance programme can include:

  • Contract works - all risks of physical loss or damage.

  • Existing property - all risks or specified perils to the retained/existing structures.

  • Increased costs - cover for increased costs on the works/or works not complete after damage.

  • Delay in start up - includes loss of rent, profit and interest after damage to the works.

  • Public liability - cover for owner/employer/project manager only.

  • Non negligence JCT 6.5.1 - cover for all parties can be arranged if this clause is applicable in your construction contract.

We work with legal advisors to ensure that the insurance clauses within the contract clearly reflect the construction insurances that will be arranged within an OCIP to avoid any confusion in the cover provided and duplication of insurance costs. This includes funder requirements such as coinsured and first loss payee.

Features and benefits of an OCIP


  1. No uninsured contracts or coverage loopholes.
  2. Can protect owner’s liabilities where contractors’ are limited.
  3. Non-cancellable policy for the duration of the project.


  1. Owners achieve benefits of bulk purchase of insurance in terms of premium costs, coverage and reduced administration costs.
  2. Avoids duplication of insurances and can save premium for the project.
  3. Owner can ensure that financiers’ requirements are satisfied – OCIP is a financier’s preferred approach.


  1. All parties enjoy joint insured status – no subrogation issues.
  2. Helps to eliminate claims between contracting parties – promotes a “no blame” culture.
  3. Claims monies are paid direct to the owner.

Frequently asked OCIP questions

What does an owner controlled insurance programme look like?

There are three core classes of insurance that form an OCIP:

  1. Construction All Risks - covers physical loss or damage to the contract works.

  2. Third-party liability - provides indemnity for legal liability following third-party property damage or third-party bodily injury arising from the works.

  3. Delay in start-up - indemnifies the owner and lenders (if applicable) for financial loss following a delay in project completion, arising from an event which is covered under the construction all risks policy.
Are there any other insurance covers I need to consider for my construction project?

An OCIP approach allows the owner to take a proactive view on the risks and the availability of mitigation solutions, including insurance. Other insurance products you might consider will vary depending on the location and the nature of the project.

They might include:

  • Rights of light cover.
  • Latent defects cover.
  • Contingency covers including chancel liability, defective title and restrictive covenant.
  • Environmental impairment liability.
  • Marine cargo/transit insurance.
When can an OCIP be arranged?
An OCIP can be arranged annually to provide automatic cover for all projects. Or for site specific projects as and when they arise.