U.S. Risk programs

As a limited form of liability insurance, Owners and Contractors Protective Liability Coverage (OCP) has a use that is separate from the coverage offered by contractors general liability. More commonly, it is more convenient to establish an OCP policy rather than listing additional insured on a general contractor’s coverage plan.

Don’t Use It as a Substitute

Because of the different applications, you shouldn’t cancel your CGL policy for an OCP. Even though you can purchase an OCP as a stand-alone policy, it only protects one party at a specific job site. The team at U.S. Risk programs advises that the declarations page of the policy will hold the specific coverage areas of the policy. This is much more limiting than general liability coverage for contractors. And while the contractors are the ones paying for the coverage, the project owner is listed as the named insured and received the benefits of the policy. The two areas of coverage for property damage or bodily injury arising out of:

  1. The owner’s omissions or acts in conjunction with the supervision of the contractor
  2. The owner’s vicarious liability connected to the contractor’s work

Rather than having to share the limits among the other insured listed on a policy, the OCP insurance limits are expressly for the named insured. This can help keep you from having claims filed against your general liability policy, which protects your premium rates from a claims hike.

Protective Liability Coverage for Contractors