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| National Insurance Advisors, Inc |
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30 Skyline Drive, Suite 2000 |
| A Key Point About NIA NIA is not affiliated with any insurance company, agency, or broker; our consulting services are delivered on a strict fee-for-service basis and we do not accept commissions. We have no vested interest in which insurer is chosen to provide coverage for an OCIP, so we remain objective throughout the evaluation, development and implementation processes, which we believe keeps everyone honest. How does a CIP work? Instead of each construction contractor providing its own insurance coverage, the project owner obtains Workers’ Compensation, general liability, umbrella liability, and builders’ risk insurance on behalf of all parties, generally using a single insurer. It is important to note that a CIP does not shift the chain of liability; the only difference is who procures the insurance policies, and the considerable benefits associated with this. Efficiency and Control A CIP gives the project owner control over key aspects of risk management: • Uniform limits, conditions, and quality of coverage • Safety and loss prevention initiatives • Claims management • A single Management Information System (MIS) to monitor all aspects of the program. Significant Savings A CIP can reduce traditional total contractor-provided insurance costs by as much as 50%. Savings stem from various factors: • The underwriting structure of the program • Elimination of coverage duplications and contractor mark-up • Decreased losses due to built-in safety and loss prevention components • Favorable cash flow requirements due to reduced premiums and “loss-sensitive” claims payment terms. |
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