Owner Controlled Insurance Program Calculator

OCIP centralizes project insurance.

Total project value

Traditional insurance markup %

OCIP cost %

OCIP savings

$1,040,000

Traditional cost

$2,800,000

OCIP total cost

$1,760,000

How the math works

Trad = project × markup. OCIP = project × OCIP %. Savings = difference.

$80M × 3.5% = $2.8M trad. vs $80M × 2.2% = $1.76M OCIP. $1.04M savings.

How to Use

Enter total project value.
Enter traditional insurance % markup.
Enter OCIP cost %.
Read OCIP savings.

Frequently Asked Questions

OCIP mechanics?

Owner purchases single insurance policy covering all contractors on site (GL, workers comp, excess). Contractors exclude their own insurance from bids and price work without insurance overhead. Owner retains control of claims and premium.

Typical savings?

10-30% of aggregate insurance cost vs decentralized. Savings from: bulk purchase, reduced contractor markups, consistent coverage, safety programs, experience modifications. $100M project saves $1-4M typically.

When use?

Projects >$50M with long duration. Single-site construction. Repeat work. Need safety control. Downsides: more management complexity, potential gaps in contractor liability, regulatory compliance across states. Specialist brokers essential.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.