What is Owners and Contractors Protective Liability (OCP) coverage?

Owners & Contractors Protective Liability Owners & Contractors Protective Liability (OCP) covers the named insured's liability arising out of operations performed for it by independent contractors when the liability is imposed directly on the named insured because of its general supervision of the independent contractor or contractors.

The named insured must be the owner of the property, a tenant of the property or another contractor for whom the designated contractor is performing operations. The liability protection provided ends when the project is finished or operations are completed. The coverage is also limited to the specific project and/or location.

The primary exposure is from vicarious liability. This is when one party is liable for the negligent actions of another party, even though the first party was not directly responsible for the injury. As examples, a parent is sometimes vicariously liable for the harmful acts of a child and an employer is sometimes vicariously liable for the acts of an employee. In the OCP coverage form, it is when the named insured, either as a property owner, project owner, general contractor or other contractor, is ultimately held liable for the acts of a hired contractor, consultant, sub-contractor or independent contractor working for or on behalf of the named insured.

Most insurance companies will not write this coverage stand alone; require that other coverages, including the general liability or business owners policy, be written as well.