An Owner Controlled Insurance Programme (OCIP) solution meets the needs of all stakeholders involved in a project.
We understand construction and redevelopment projects for Local Government can be highly complex undertakings with many different elements of work to be co-ordinated into the finished project.
The Council’s Project team is committed to displaying exemplary control and management of construction processes to ensure delivery is on time and on budget and meeting the needs of the community.
Such control and management is just as important for the insurance programme which wraps around the construction process, providing a layer of financial protection for transferred risks.
JLT and AIG have partnered to provide an intuitive system than can quote, bind and issue policies all by a click of a button.
ABOUT THE PSCF
WHAT IS THE PUBLIC SECTOR CONSTRUCTION FACILITY?
The Public Sector Construction Facility (PSCF) is an online portal powered by CEECAT allowing you to declare and bind coverage instantly for construction projects with bespoke policy document for the respective project provided immediately.
It is an intuitive system requiring only the essential contract information to be entered in order for a quote to be produced, accepted, cover bound and the bespoke project documentation produced.
From a quality control perspective, JLT and AIG tailors the PSCF referral triggers to be in line with the In Scope vs Out of Scope terms and conditions agreed with the successful insurance partner.
WHAT COVERS ARE AVAILABLE?
The policy period of an OCIP is the fixed period for the duration of construction and can cover the following exposures:
- Construction All Risks (CAR) – covering material damage to the works, materials and existing structures
- The Party Liability (TPL) including non-negligent cover
- Advance Loss of Rent/Revenue (ALOR) and Delay in Start Up (DSU)
HOW DOES THE PSCF BENEFIT COUNCILS?
CONTROL OF COVERAGE
Council knows best what its risks are and how it wishes to manage them. Points of concern for Council may not rank so highly on a contractor's list of priorities, who may arrange cover simply to provide for their own contractual or technical risks. The programme must aim to take account of all parties' needs, but procurement of the insurances by Council allows the cover to be tailored to ensure the Council’s specific aims are satisfied.
CONTROL OF CLAIMS
The primary function of any insurance policy is the payment of claims, yet any claim has the potential for complexity. From first notification and loss adjuster site visits, through to production of supporting information, negotiation and eventual settlement of the claim, the Council will be keen to see that the process runs smoothly and promptly. Having a direct relationship with insurers and loss adjusters, established during the procurement process, can prove critical to successful conclusion of difficult claims.
CONTROL OF DEDUCTIBLES
Almost all insurance policies will require the insured parties to bear a deductible, the purpose of which includes incentivising the Project participants to manage risk and avoid losses. The Council-led procurement of insurances permits the ability to select a deductible level suitable for Council, balancing the need to incentivise contractors without being overly punitive.
COMPLIANCE WITH LENDING REQUIREMENTS
Financiers may seek certain securities over the insurance programme effected over a project. It is highly likely, in such a circumstance, that financiers will insist that the insurances are controlled by the Council, so that financiers can step-in to the rights of the Council in the event of default under the lending agreements.
AVOIDANCE OF CROSS-CLAIMS AND DISPUTES
A common panel of insurers across the project removes the potential for claims between parties and their respective insurers, as each seeks to protect its own interests.
OPTIMUM LEVELS OF COVER
The ability to arrange advance loss of profits insurance to cover lost rent or fixed costs including debt servicing and the potential tenant's alternative accommodation during the rebuild period following delay as a result of damage to the works.
ELIMINATION OF ON-COSTS
With direct control of the procurement process, the Council can ensure that no additional 'handling costs' are passed on to the Project. Furthermore, even if the insurances were to be placed by others, the Project Team would still need to expend considerable time ensuring that the insurances had been effected to their satisfaction – effectively duplicating work.
PROTECTION FROM CONTRACTOR DEFAULT
In the event of a Contractor being unable to fulfil their contractual obligations due to breach of conditions, contractual disputes leading to termination or a contractor insolvency, Council retains ownership of the policy and remains protected whilst they re-bid the project and replace the contractor. This greatly reduces the risk exposure to council from a contractor default and avoids difficulties associated with a new contractor insuring the partially completed works.
ACCESS THE PSCF
Through accessing the PSCF for your PCIP insurance quotes and following the simple form, you are able to gain coverage for your project in 4 simple steps.
Our methodology is to drive out unnecessary costs through drafting appropriate "Instructions to Tenderers" documents to ensure that contractors have clarity on insurance responsibility when they tender.
Key relationships with leading market insurers allows us to access competitive premiums whilst still obtaining robust coverage for Councils.
If the worst was to happen, our claims team will offer a seamless claims management system, including the co-ordination of insurers and loss adjusters, as well as access to a specialist team in the event of a major complex loss.