What Is Independent Contractors Protective Insurance

2022.04.16

During a construction project, project owners and prime contractors can be held responsible for the actions of the subcontractors they hire and supervise. This indirect responsibility for the actions of the persons under their supervision is called the responsibility of the executing agent. An owner-contractor protective liability (OCP) policy financially protects the project owner in the event of a lawsuit related to the work of a subcontractor who was under the supervision of the project owner. If you need to purchase protection insurance for homeowners and contractors, an insurance professional at Fusco & Orsini can help you get a policy with the best premium. Request a free quote. This type of protection insurance covers loss and damage caused by the independent contractor (and his employees) caused by: As a rule, there is no deductible purchased for a protection policy for owners and contractors. The premium is based on the contract between the developer and the designated contractor. Although the supervised contractor buys the policy, the owner of the project is the insured. The insurance policy protects the insured against the actions of the specific contractor who purchased the policy, but only while that contractor is working at the location specified in the policy on the specified project. There is no requirement as to the type of work that a designated insured person has engaged a contractor. Therefore, the insured project can be of a personal, agricultural or commercial nature.

The only requirement is that there be vicarious liability between an owner who has a contractor who works for that owner or a contractor who has subcontractors or independent contractors who work on his behalf. This indirect liability includes injury or damage caused by an employee in the context of a close employer-employee relationship. However, in the following circumstances, the financial consequences of the actions of independent contractors can be attributed to an owner or general contractor: The advantage of an OCP policy is that it offers a separate policy with separate restrictions from the CGL to protect said insureds. OCP is generally more cost-effective than a GL policy. However, an OCP policy does not include all the coverage that a CGL policy provides. Liability for bodily injury or property damage does not exist after the completion of the Contractor`s work or arises from a portion of the Work that has already been used as intended. That insurance risk would revert to the insured`s premises and the insured`s operating cover in the LGL. A significant exclusion applies to bodily injury or property damage resulting from the acts or omissions of the Developer or its employee, with the exception of the general supervision of the Work performed by the Contractor for the Proponent. It is recalled that the main exposure of the OCP policy is the responsibility of the project owner, and not if the negligence of the project owner is the cause. This policy does not provide for personal injury or completed transactions. The OCP policy does not allow designated policyholders to issue AIs under this policy.

An insurance professional would be the right person to discuss this very important coverage. Contact The Safegard Group for more information or read more here! We offer a complete and world-class product for truck fleets to protect themselves and their contractors. Through an exclusive network of partner agents, we offer the following coverage for fleets of 25 units or more: Independent Contractor Protection Insurance, also known as Independent Contractor Insurance, is insurance coverage that deals with payment and damage caused or caused by the Contractor. Under a OCP, the insured is protected in the event of a lawsuit alleging that damage or injury was caused by work performed by an independent contractor for the insured under the insured`s supervision. We provide innovative and robust web-based management tools for fleets with contractors to manage registration and streamline the billing deduction process. .