Owners Interest Policy
What Is an Owner’s Interest Policy?
An Owners’ Interest Policy (OIP), also called Owner’s Interest Liability Insurance, is a specific type of construction insurance. It safeguards the project owner or developer from liability related to construction activities.
When you hire a General Contractor (GC) and subcontractors for your project, you rely on their insurance. You also depend on their indemnity agreements for protection. However, some gaps may leave you exposed. An Owners’ Interest Policy protects you from lawsuits and liability claims. This coverage remains effective even if your contractors’ insurance expires, has exclusions, or offers inadequate limits.
Why Owners Need an Owners’ Interest Policy
Owners and developers often face lawsuits connected to construction projects. This can happen even when they are not directly responsible for any issues. General Contractors and subcontractors usually offer General Liability coverage and list the owner as an Additional Insured. However, this protection may not suffice.
An Owner’s Interest Policy offers:
Direct protection if contractors’ insurance fails or lapses
Coverage for the owner’s negligence or liability
Peace of mind for lenders, investors, and stakeholders
Protection during construction and sometimes after completion (with ERP endorsement)
Key Features of an Owner’s Interest Policy
Project-Specific Coverage – Written for the duration of the construction project
Extended Reporting Period (ERP) Option – Extends coverage through the statute of repose for construction defect claims
Flexible Limits – Tailored to the project size and risk exposure
Standalone Protection – Works alongside GC and subcontractor coverage for layered security
Did You Know?
For the Owners’ Interest Policy (OIP), you can buy excess policies. This option helps you increase your current coverage amount
However, Owners and Contractors Protective (OCP) Liability Coverage has several limitations. One key limitation is that no excess coverage can be purchased above it
Owners Interest Policy vs. OCIP (Owner Controlled Insurance Program)
Both policies are designed to protect project owners, but they differ in scope, cost, and administration. Here’s how they compare:
| Feature | Owners Interest Policy (OIP) | OCIP (Owner Controlled Insurance Program) |
|---|---|---|
| Who’s Covered | Project Owner only | Owner, General Contractor, and all Subcontractors |
| Cost | Lower, more affordable option | Higher, but provides broad coverage |
| Administration | Simple, minimal oversight required | Complex, requires dedicated administration and cost recovery from subs |
| Best For | Small to medium construction projects | Large-scale construction projects |
Key Takeaway: An Owners Interest Policy (OIP) is a budget-friendly option for smaller projects with less risk. In contrast, an OCIP is more appropriate for large, complex projects that require wider, centralized coverage.
Who Should Consider an Owner’s Interest Policy?
Developers and Real Estate Owners who hire GCs and subcontractors
Project Owners seeking protection beyond GC insurance
Owners financing projects with lenders who require proof of liability protection
Small to mid-sized projects where OCIP is not cost-effective
Are you a business owner or a commercial property investor? If so, you must understand Owner’s Interest Insurance. This policy is crucial if you are building or renovating a commercial property. It safeguards your investment, assets, and livelihood during the construction process.
Get an Owners’ Interest Policy Quote Today
Protect your investment as a project owner with the right coverage. At BlueRock Insurance Services, we simplify the process of obtaining an Owners Interest Policy (OIP). This policy protects you from liability risks during construction projects, making it fast and stress-free.
Coverage designed specifically for project owners
Fast, no-obligation quotes
Expert advice tailored to construction and real estate needs
Don’t leave your construction project exposed to unnecessary risk. At BlueRock Insurance Services, we help project owners and developers. Our goal is to provide tailored protection. We achieve this through an Owners’ Interest Policy.
FAQs About Owners Interest Policies
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An OIP covers the project owner’s liability risks during construction, including direct negligence and gaps in contractors’ coverage.
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Not always. However, it is highly recommended for projects where owners want extra protection or where lenders require additional coverage.
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Being an Additional Insured gives you some protection under the GC’s policy, but if that coverage is invalid, insufficient, or expired, the OIP ensures you still have direct protection.
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It depends on project size. OIP is more affordable and easier for small to mid-sized projects, while OCIP works best for large, complex developments.
General liability insurance is essential for New York businesses, from small shops to contractors. It covers bodily injury, property damage, and advertising injury claims—helping you stay compliant and financially protected. Learn how to find affordable coverage today.