Share This Article
Owners and contractors face a range of liability risks during construction projects. These can include actions, omissions and general supervision of other parties, which may result in injury or property damage to third parties.
Obtaining owners and contractors protective liability (OCP) coverage can help protect them from some of these liabilities. However, it is important to understand who and what is covered under these policies.
Coverage for Vicarious Liability
During construction, property owners and general contractors are often responsible for the actions of subcontractors who perform work under their supervision. An Owners and Contractors Protective Liability policy can protect them against lawsuits that claim they hired negligent subcontractors.
Vicarious liability is the legal theory that assigns liability to someone who has a specific relationship with the person who committed a wrongful act. It is typically applicable to employer-employee relationships, but it can apply to other situations as well.
For example, if a delivery driver for Amazon is involved in a car accident, the company will be held liable because they put that driver on the road and allowed him to drive a truck delivering packages.
This can cause serious injuries or death to people. It also causes companies to be forced to take extra precautions and ensure their employees are properly trained to avoid accidents and harm.
Coverage for Property Damage
If a project owner suffers damage from contractors or subcontractors while working on a home or commercial property, he may be held liable for the damages. In order to protect against this liability, owners may opt for a builder’s risk policy or general contractor insurance.
A builder’s risk (or course of construction) insurance policy will cover any damage that occurs to the construction site during the project. The same policy will also provide coverage for losses that occur to the personal possessions of the homeowner, up to the limit in the policy.
The construction industry is a lucrative one, and many companies and contractors are eager to work on projects. However, the risks involved in working on these projects can be significant.
Coverage for Bodily Injury
Owners and Contractors Protective Liability, often abbreviated to OCP, is a great way to protect project owners from a number of risks that could lead to claims, lawsuits and other financial hardships. It also helps ensure that property owners have adequate coverage for property damage caused by subcontractors, and can help to defray the cost of legal defense should a claim arise.
As the name implies, OCP is a surprisingly large and complex coverage that protects project owners in many ways. Among other things, it covers a number of risk management challenges ranging from construction defects and design flaws to liability resulting from accidents or mishaps. As one of the most expensive types of coverage, OCP is an excellent fit for larger projects. It also offers a number of technological and design innovations that can make the job of managing risk simpler for the project’s stakeholders. It’s a good idea to discuss this coverage with an experienced insurance professional to find out more about its unique features.
Coverage for Advertising Injury
Owners and Contractors Protective Liability (OCP) policies provide liability protection for a business owner who is drawn into a suit because of negligence by a hired contractor. It may also cover a general contractor who is drawn into a suit when a third party’s injury or damage is caused by a subcontractor.
The coverage provides protection against lawsuits alleging libel or slander, invasion of privacy, copyright infringement, and violation of another person’s rights to their intellectual property. It can also pay for legal fees and court costs associated with these claims.
Advertising injuries can occur on social media, online ads, in print publications, and more. You can avoid these claims by asking permission before using any image, slogan or logo belonging to someone else in your advertisements.
