OCIP III Insurance Procedures And Enrollment Manual
Owner Controlled Insurance ProgramOCIP IIIInsurance Procedures andEnrollment ManualThis Manual is a Contract DocumentNJSDA OCIP III Insurance Manual1
T A B L EO FC O N T E N T STable of ContentsTABLE OF CONTENTS . 2Section 1OVERVIEW . 4ABOUT THIS MANUAL. 4Section 2PROGRAM DIRECTORY . 6Section 3PROJECT DEFINITIONS . 7Section 4OCIP INSURANCE COVERAGE . 10OVERVIEW . 10EXCLUDED PARTIES . 10EVIDENCE OF COVERAGE . 11DESCRIPTION OF OCIP COVERAGES. 11DESCRIPTION OF OTHER OWNER PROVIDED COVERAGES . 13Section 5CONTRACTOR/SUBCONTRACTOR MAINTAINED COVERAGE . 14VERIFICATION OF REQUIRED COVERAGES . 14CONTRACTOR/SUBCONTRACTOR MAINTAINED COVERAGES . 14Section 6CONTRACTOR/SUBCONTRACTOR RESPONSIBILITIES AND OBLIGATIONS . 20CONTRACTOR/CONTRACTOR BIDS . 20IDENTIFYING CONTRACTOR/SUBCONTRACTOR INSURANCE COSTS . 20INSURANCE CARRIER PAYMENTS . 21ENROLLMENT . 21PAYROLL REPORTS . 22CHANGE ORDER PROCEDURES . 22INSURANCE COMPANY PAYROLL AUDIT . 22CLAIM REPORTING . 23OCIP CLOSEOUT AND AUDIT PROCEDURES . 23OCIP TERMINATION OR MODIFICATION . 23CONTRACTOR/SUBCONTRACTOR’S OCIP OBLIGATIONS . 24CONTRACTOR/SUBCONTRACTOR REPRESENTATIONS AND WARRANTIES TO SPONSOR . 25DUTY OF CARE . 25CONFLICTS . 25SAFETY . 25Section 7CLAIM PROCEDURES . 26GENERAL PROCEDURES. 26INVESTIGATION ASSISTANCE . 26WORKERS’ COMPENSATION CLAIMS . 26GENERAL LIABILITY CLAIMS . 27BUILDERS’ RISK CLAIMS. 28AUTOMOBILE CLAIMS . 28POLLUTION CLAIMS . 28JOINT REPRESENTATION . 28AVAILABILITY OF CLAIMS DATA . 29Section 8CONTRACTOR FAQS . 30Section 9FORMS . 33CONTRACTOR PORTAL INFORMATION . 34APPLICATION FOR ENROLLMENT . 43OCIP Insurance ManualNew Jersey Schools Development Authority2
T A B L EO FC O N T E N T SINSURANCE COST WORKSHEET . 46WORK COMPLETION FORM . 51EXHIBIT 1 – SAMPLE ENROLLED PARTY CONTRACTOR CERTIFICATE OF INSURANCE . 53EXHIBIT 3 – SAMPLE RATE VERIFICATION LETTER . 55FORM 1108 (FORM C-1) . 56FORM 1109 (FORM C-2) . 57FORM 1110 (FORM C-3) . 58NOTE:Form 1101 through Form 1104 can be completed on-line. To obtain a User ID and Password,contact:Turner Surety and Insurance Brokerage Wrap-up ServicePhone: (866) 684-WRAP(866) 684-9727Email: NJSDA@tsibinc.comNJSDA OCIP III Insurance Manual3
O V E R V I E WSection1OverviewWelcome to the New Jersey Schools Development Authority’s (NJSDA’s) Owner Controlled InsuranceProgram (OCIP).Each Eligible Party is required to bid without the cost of their on-site Workers’ Compensation,Employer’s Liability, and General Liability Primary and Excess Insurance (i.e. “Bid Net”).Sponsor may modify this bidding and insurance cost identification as necessary based on thespecific project requirements. Bidder’s completed and verified Form 1102 along with its currentInsurance Rate Sheets (see Section 6 “Identifying Contractor Insurance Costs”) will be the basisfor establishing what your corporate insurance costs would have been.About This ManualNJSDA (“Sponsor”) is the Owner and Turner Surety and Insurance Brokerage (“TSIB”) is the Brokerof Record and Administrator for this OCIP. The Manual is designed to identify, define and assignresponsibilities for the administration of the OCIP for this project.This Manual: Generally describes the structure of the OCIPIdentifies responsibilities of the various parties involved in the Project(s)Provides a basic description of OCIP coverage (the specifics of the OCIP coverage are governedexclusively by the terms of the OCIP insurance policies)Sets forth insurance requirements for project(s) ContractorsSets forth Enrollment requirementsDescribes audit and administrative proceduresProvides answers to basic questions about the OCIPThis Manual does not: Provide coverage interpretationsProvide complete information about coverages and exclusionsProvide answers to specific claims questionsOCIP Insurance ManualNew Jersey Schools Development Authority4
O V E R V I E WRefer questions concerning the OCIP, its administration or coverages to the appropriate party identifiedin the Project Directory, Section 2.ADVISORY:The information in this Manual is intended to outline the OCIP. If any conflict exists betweenthis Manual and the OCIP insurance policies, the OCIP insurance policies will govern. Coveragesoutlined in this Manual are for summary purposes only, and any party should refer to theirspecific contract for details regarding each coverage.Enrollment in the OCIP is mandatory for each and every eligible Contractor and Subcontractor. It is notautomatic. The Prime Contractor shall be required to notify the NJSDA’sRisk Management Unit of allSubcontractors of every tier providing direct labor on the School Facilities Project and follow enrollmentprocedures as provided by the Authority in the NJSDA OCIP Manual. Any failure on the part of thePrime Contractor to comply with this enrollment requirement may negate coverage under the OCIP,and the Prime Contractor may bear all financial risk associated with any lack of coverage.NOTE:You should notify your insurance agent(s) or broker(s) to endorse your coverage to be excess andcontingent over the OCIP coverage provided under this Program for on-site activities and the relatedcosts.Insurance coverages and limits provided under the OCIP are limited in scope and are specific towork performed after the inception date of your enrollment into this program. Your insurancerepresentative should review this information. Any additional coverage you may wish topurchase will be at your option and expense.All payrolls submitted for this project should be excluded from the payrolls submitted to yourcorporate insurance carriers to avoid paying premiums for exposures covered by the Sponsor’sOCIP Program. The Workers’ Compensation Policy issued to you and the Certificate ofInsurance showing you as an Additional Named Insured on the General Liability Policy may beused to provide evidence of your enrollment in the Sponsor OCIP to your corporate insurancecarriers.NJSDA OCIP III Insurance Manual5
O C I PP R O J E C TD I R E C T O R YSection2Program DirectoryOCIP ManagementContractor ContactTurner Surety and Insurance Brokerage Wrap-up Service35 Nutmeg Drive, Suite 300Trumbull, CT 06611Telephone: (866) 684-WRAP(866) 684-9727Enrollment Portal ContactService Center Quality AssuranceSpecialistAnna-Kay JacobsRegional Program ManagerDenise BianchiTelephone: (203) 666-4324Email: NJSDA@tsibinc.comTelephone: (732) 652-7702Cell: (201) 574-885E-mail: dbianchi@tsibinc.comBroker of Record: Turner Surety Insurance BrokerageAccount ManagerWill DanielTelephone: (571) 237-1122Email: wdaniel@tsibinc.comClaims ManagerGerry RichardsonTelephone: 201-267-7526Cell: 201-574-6551E-mail: grichardson@tsibinc.comOCIP Insurance ManualNew Jersey Schools Development Authority6
P R O J E C TD E F I N I T I O N SSection3Project DefinitionsThe following list includes key OCIP definitions.CERTIFICATE OF INSURANCE: A document providing evidence of existing coverage for aparticular insurance policy or policies.CONSTRUCTION MANAGER(CM):The person, persons or firm, if any, engaged by the Authority toact as the Authority’s representative on the Project, and to provideconstruction management services, including oversight andreporting services, in connection with the construction of aProject.CONTRACT / AGREEMENT:A written agreement including all appendices and all documentsspecifically incorporated herein, between the Authority and theDesign-Builder, as such agreement may be modified byAmendmentCONTRACTOR ANDSUBCONTRACTORINSURANCE COSTS:Contractors, and its Subcontractors of all tiers, corporateinsurance costs that would be required if the OCIP insurancecoverage was not provided.CONTRACTOR INSURANCECOST LETTER:Letter written by the OCIP Administrator confirming the VerifiedInsurance Costs.DESIGN-BUILDER / GENERALCONTRACTOR:The firm or firms engaged by the Authority to design and/orconstruct the Project in accordance with the requirements of theContract Documents. Any and all references to the term“Contractor” in the manual shall mean the Design-Builder or theGeneral Contractor.ELIGIBLE PARTIESParties to include Construction Managers, Contractors andSubcontractors of every tier, for whom the NJSDA has agreed bycontract to furnish the insurance provided under the OCIPProgram.OCIP Insurance ManualNew Jersey Schools Development Authority7
P R O J E C TD E F I N I T I O N SENROLLED PARTIES:Those Eligible Contractors who have submitted all necessaryenrollment information as detailed in Section 6 and have beenaccepted into the OCIP receiving a Welcome Letter andCertificate of Insurance.EXCLUDED PARTIES:At the discretion of the NJSDA, the following parties areexcluded from (not eligible for) enrollment in the OCIP:(1) Hazardous materials remediation, removal and/or transportcompanies and their consultants;(2) Architects, engineers, soil testing engineers, surveyors, andtheir consultants;(3) Vendors, suppliers, fabricators (who do not perform orsubcontract installation), material dealers, truckers, haulers,drivers and others who merely transport, pickup, deliver, orcarry materials, personnel, parts or equipment or any otheritems or persons to or from the Project Site;(4) Contractors, and any of their respective Subcontractors, whodo not perform any actual labor on the Project Site;(5) Any other Contractor of any tier which the NJSDA, at its solediscretion, seeks to exclude from enrollment.OCIP:An “OCIP” or Owner Controlled Insurance Program is acoordinated insurance program providing certain coverages, asdefined herein, for NJSDA and eligible Enrolled Partiesperforming Work at the Project Site.OCIP ADMINISTRATOR /BROKER OF RECORD:Turner Surety & Insurance Brokerage, Inc. (TSIB)OCIP INSURER:Liberty Mutual Insurance Company (primary) and otherinsurance companies named on a policy or certificate of insuranceproviding coverage for the OCIP.OCIP MANAGEMENT:Management of OCIP enrollment and other OCIP-related issuesshall be handled by the Authority’s OCIP AdministrationServices Provider in conjunction with the Authority’s RMU.OCIP SPONSOR/OWNER:New Jersey Schools Development Authority(“Authority”)(NJSDA)NJSDA OCIP III Insurance Manual8
P R O J E C TD E F I N I T I O N SPRIME CONTRACTOR:Contractor holding a direct contract with NJSDA.PROJECT SITE:Generally defined as the “project location” (designated in thisManual and more fully identified in the Contract or SubcontractAgreement) and adjacent or nearby areas as defined in the projectdocuments where incidental operations are performed excludingpermanent locations of any insured party.RISK MANAGEMENTDIVISION (RMU) :The Authority’s unit dedicated to managing the NJSDA OCIP,including the related safety-consulting services.SUBCONTRACT /A written agreement between the Design-Builder(s) or theSUBCONTRACT AGREEMENT: General Contractor(s) and Subcontractor(s) of any tier.SUBCONTRACTOR:The party to whom the Design-Builder, the General Contractor oranother subcontractor subcontracts part or all of the Work forwhich the Design-Builder, the General Contractor or othersubcontractor is ultimately responsible. As used in this manual,the term “Subcontractor” shall include subcontractors of any tier.SUBCONSULTANT :Professional Services Consultant engaged by anotherProfessional Services Consultant for the performance of all orpart of the services for which the latter is responsible.VERIFIED TOTALINSURANCE COSTS:WELCOME LETTER:WORK/SERVICES:The Contractor and Subcontractor corporate insurance cost thathas been verified as accurate by the OCIP Administrator and asevidenced by the Contractor Insurance Cost Letter.A document issued by the OCIP Administrator, which confirmsacceptance / enrollment of the applicant into the OCIP.All activities and construction work to be performed by tractors/Subconsultants and suppliers, including providingall material, equipment, tools, labor, services, transportation,supplies and design services as described in and reasonablyinferable from the Contract or Subcontract Documents.NJSDA OCIP III Insurance Manual9
O C I PI N S U R A N C EC O V E R A G ESection4OCIP Insurance CoverageThis Section provides a brief description of the OCIP Coverage. EnrolledParties should refer to the actual OCIP insurance policies for detailsconcerning coverage, exclusions and limitations.OverviewAs the OCIP Sponsor, NJSDA, has arranged with Turner Surety And Insurance Brokerage, Inc.(Broker of Record) and Turner Surety and Insurance Brokerage (the “OCIP Administrator”) for theseProject(s) to be insured under its Owner Controlled Insurance Program (“OCIP”). The OCIP is morefully described in this Manual. Parties performing labor or services at the Project Site are eligible toenroll in the OCIP unless that party is an Excluded Party. The OCIP will provide to Enrolled PartiesWorkers’ Compensation and Employer’s Liability Insurance, Commercial General Liability Insurance,and Excess Liability Insurance as summarily described below, in connection with the performance ofthe Work (“OCIP Coverages”).Excluded PartiesExcluded Parties are not granted any insurance coverage under the OCIP. Excluded Parties mustmeet the insurance requirements established in Section 5 and in the Contract Agreement, and provideevidence of coverage to the OCIP Sponsor. Excluded Parties are defined in Section 3, “ProjectDefinitions”.Excluded Parties shall require each of its Subcontractors to obtain and maintain the insurance coveragespecified in Section 5, “Contractor/Subcontractor Maintained Coverages”.Each policy required under this Section, except for Workers’ Compensation and ProfessionalLiability, shall name NJSDA, and other additional insured parties, their respective officers, agentsand employees, and any additional entities as Sponsor may request as additional insureds.Coverage is to be afforded on a primary and non-contributory basis with respect to any otherinsurance available to the additional insured. The additional insured endorsement utilized for theGeneral Liability policy must provide coverage as broad as that available under the ISO CG 20 1011 85 or its equivalent.OCIP Insurance ManualNew Jersey Schools Development Authority10
O C I PI N S U R A N C EC O V E R A G EEvidence of CoverageOCIP Coverages shall cover only Enrolled Parties. Enrolled Parties are: Sponsor, eligibleContractor(s) and Subcontractors who enroll in the OCIP, and such other persons or entities asSponsor at its sole discretion may designate.Each Enrolled Party will be issued an individual Workers’ Compensation policy provided by LibertyMutual Insurance Company, the OCIP primary insurer. The OCIP Administrator will provide aCertificate of Insurance evidencing Workers’ Compensation, General Liability, and Excess LiabilityInsurance to each Enrolled Party, each of whom will be added as an Additional Name
Form 1101 through Form 1104 can be completed on-line. To obtain a User ID and Password, contact: Turner Surety and Insurance Brokerage Wrap-up Service Phone: (866) 684-WRAP (866) 684-9727 Email: NJSDA@tsibinc.com
insurance costs due to eligibility for OCIP Coverages, as determined by using the Alliant WrapX system which includes the Enrollment Form and the Insurance Cost Worksheet. Instructions for access to Alliant WrapX are located in Section 8 of this Insurance Manual. The Cost of OCIP Coverages includes reduction in insurance premiums,
insurance costs due to eligibility for OCIP Coverages, as determined by using the Alliant WrapX system which includes the Enrollment Form and the Insurance Cost Worksheet. Instructions for access to Alliant WrapX are located in Section 8 of this Insurance Manual. The Cost of OCIP Coverages includes reduction in insurance premiums,
OWNER CONTROLLED INSURANCE PROGRAM (OCIP) 1.1 INTRODUCTION The District, hereinafter called the "Owner" has elected, . B. Contractor Insurance Cost Identification Contractor's base bid shall exclude any and all costs for insurance coverages provided under the OCIP. If insurance cost is not removed, the bidder may not qualify as the .
OCIP PROJECT INSURANCE MANUAL SECTION 2 - INTRODUCTION 56349: CDOT OCIP Prog 2012\W-Eisenhower\Admin\Project Manls\Current\PIM_0114.docx Colorado Department of Transportation (CDOT)/ March 21, 2014 - 7 DRAFT Introduction 2.1 Welcome Welcome to the Colorado Department of Transportation (CDOT) Project OCIP Project Insurance Manual
The cre dit for OCIP provided insurance to be deducted from the bid price should be based on the process described in Section 5.3 Subcontractor Insurance , Credit Calculation. Alliant, the OCIP Program Manager, will be administering the program on the behalf of the Owner. It will be primary insurance for the benefit of insured parties of this .
Resume: provided. Experience: 20 years’ experience in construction risk management, OCIP. o In addition to Property and Casualty insurance, she has experience with managing over 7.5B of insurance programs such as OCIP and CCIP, Builders’ Risk, o Pollution Liability, Workers Compensation and Subcontractor Default Insurance (SDI).
Contractor Required Insurance - Other Than OCIP Insurance; d) Confirmation that the contractor's current experience modifier at time of bid does not exceed 1.50. (See Frequently Asked Questions section for additional details) 2.4 If a Contractor is not to be enrolled in the OCIP, the following must be provided to the Construction Manager:
The king's insurance options 5 Things you need to know 7 The stuff you need to do 14 How to claim 16 Our commitment to you 20 Car insurance 22 Car warranty 37 Shortfall cover 45 Scratch and dent 46 Tyre and rim 48 Motorbike insurance 53 Trailer and caravan insurance 64 Watercraft insurance 68 Home contents insurance 77 Buildings insurance 89
