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Owner
Controlled Insurance Program
Property and building owners and managers today are more sophisticated about the design of their insurance programs, controlling insurance costs and having adequate and consistent protection. These issues are of particular concern when several contractors and or consultants are working for them at one time.
Owner controlled insurance programs can include any combination of
general liability, professional liability, pollution liability, asbestos
and lead abatement coverage as well as time element/business interruption
insurance.
Instead of requiring each contractor to purchase insurance, the owner
chooses and buys coverage and limits needed, and adds contractors/consultants
to the policy.
Contractors and consultants policies usually have annual aggregate liability limits shared by many other projects. This makes it difficult to determine whether or not their limits have eroded as a result of claims from other jobs.
The owner controlled approach eliminates the need for owners to track contractors insurance status for proper coverage, exclusions, limits of liability, insurance carrier's financial strength, and other costly and time-consuming variables.
Another issue to control is whether the contractors or consultants
performing work will continue to purchase insurance that will provide
coverage on a retroactive basis for your project years after the work
has been completed.
Many owners using this program will charge back the contractor or consultant to recover the cost of the policy and risk management functions.
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