Owner-Controlled Insurance Programs – Coverage and Benefits

Owner-controlled insurance programs (OCIPs) provide thorough insurance protection to cover construction projects by combining multiple benefits and streamlining the entire process into a single plan. Also known as wrap-up insurance plans, OCIPs serve as a cost-effective insurance product especially for projects with significant multi-million dollar budgets, usually spanning from two to five years.

Traditional insurance plans typically cover individual parties working on a construction project. This approach can be costly for the property owner who must account for the individual policies when hiring and paying for each contractor. However, OCIPs bundle all the policies together into one, potentially cutting costs and protecting all involved parties including owners, contractors, and developers under a single plan. Further, owners who are in charge of multiple properties can expand OCIPs into a rolling plan to cover a series of projects.

Encompassing most of the policies that are covered by traditional insurance plans, OCIPs can be customized by owners to provide additional coverage. OCIPs cover commercial general liability (CGL), which includes contractual and personal injury liability as well as property damage. For excess liability outside the scope of CGL, OCIPs also include commercial umbrella coverage.

OCIPs commonly cover workers’ compensation to support injured workers during time off and reimburse medical bills. To extend insurance protection after the project completion date, owners may modify an OCIP to include completed operations coverage. This type of insurance protects involved parties from being liable in case any flaws arise after construction has been completed. Owners could add optional coverage in their OCIPs such as environmental liability or earthquake protection depending on the nature of the construction project.

Although OCIPs can be easily customized, certain policies are not covered by OCIPs, including commercial auto insurance and surety bonds. Some parties who are involved in the construction project but do not work on-site are also excluded from OCIP coverage, such as off-site contractors, transporters, and third-party vendors.

OCIPs benefit owners and contractors alike. Unlike individual policies, OCIPs make it easier for property owners to ensure that all insured parties have uniform coverage without any gaps or overlaps between policies. Additionally, in the case of an insurance claim, contractors with individual policies may dispute liability and delay project progress unnecessarily. However, under an OCIP, a single policy governs all claims, so the claims handling process is simplified, with lower risk of long disputes or delays.

Another advantage of OCIPs is their relatively high limits for contractors. Since OCIPs cover liability for entire projects, the insurance limits tend to be higher than those of individual policies for contractors. If any individual contractor causes damages, they can greatly benefit from these limits.

Moreover, OCIPs allow more contractors to bid on a wider variety of jobs that they might not be able to access with their individual insurance policies. This may also help owners access a larger pool of contractors for their projects. With an OCIP, contractors can quickly enroll into a plan and start working instead of getting their own policies, which could be more time-consuming.

An Introduction to Snowboarding

Snowboarding is a winter sport riders participate in competitively or for fun. Considered an extreme sport, snowboarding involves an individual strapping their feet on a thin board and riding downhill over snow terrain.

Modern-day snowboarding began in the United States with its equipment, styles, and other aspects. Muskegon, Michigan resident Sherman Poppen, also called “the snowboard’s father,” invented the first board prototype in 1965.

Poppen called his invention the “snurfer.” The snurfer made way for modern-day snowboarding, which started in 1966. However, it wasn’t until the 1970s that the modern board was invented. The sport gained popularity in the 1960s and 1970s and spread to other parts of the world. It first featured in the Winter Olympics in 1998.

Riders use many pieces of equipment and clothing, such as the snowboard, bindings, snowboard boots, a helmet, mittens or gloves, goggles, jackets, pants, layers, a face mask, and socks. The snowboard is the most essential piece of equipment. It is made from fiberglass and has metal-lined edges.

Snowboard bindings are equipment fixed on the snowboard that helps riders strap their boots to the board. Snowboard boots are the footwear the rider wears. A rider should choose comfortable boots that fit them properly.

The helmet protects the rider’s head in case of a fall. Snow may appear soft, but it is a dangerous surface when snowboarding, thus requiring a helmet. To keep their hands warm, riders wear mittens or gloves.

Snowboarding may expose the rider’s eyes to wind, sunlight, snow, and debris. Goggles help protect their eyes from these elements. Due to the cold weather in snowy areas, a warm jacket and pants set keeps the rider’s body warm.

Layers are clothing worn underneath the jacket and pants to keep moisture from the body. Synthetic fabrics and natural wool are preferred over cotton since cotton soaks up moisture. Similar to gloves, socks help keep the rider’s feet warm.

Many people visit ski resorts where they participate in standard downhill and backcountry riding. Downhill riding, also called freeriding, is done for pleasure, and riders ride down hills whose peaks they can access via cable cars that ski resorts provide. With backcountry snowboarding, riders hike uphill in non-monitored, unpatrolled, and unmaintained terrain, usually not operated by ski resorts, to ride downhill.

As a competitive sport, there are five snowboarding styles: air, halfpipe, slalom, slopestyle, and snowboard cross. Air, also called big air, involves riders gaining speed as they ride downhill and launching off a special pad to make a big jump. Riders aim to make the highest jump possible and may also perform acrobatic styles.

Halfpipe involves riding down a large halfpipe. Riders perform tricks and are scored based on these tricks. The ride must last more than 10 seconds. Otherwise, the rider will be disqualified. With slalom, two riders compete downhill and pass through markers as they make high-speed turns. The rider who crosses the finish line the fastest time wins.

Slopestyle requires riders to ride down a course that has different features. As they ride, they can perform tricks on any of the features. A team of nine judges determines the winner based on the tricks performed.

A snowboard cross involves many riders competing down a course. As with halfpipe, the rider that crosses the finish line with the fastest time is the winner. A rider must not interfere with another’s run, as this leads to disqualification.

The Basics of Casualty and Property Insurance

Shawn Michael Kraatz joined Newport Beach, California’s Alliant Insurance in 2000. As a partner with the firm, Shawn M. Kraatz frequently works with clients as a property and casualty insurance advisor assessing their risks and exposures.

Casualty insurance is a type of insurance that is frequently connected to property insurance. In fact, these two types of insurance are often referred to together as property and casualty insurance (P&C). Property insurance can be applied to a variety of assets, ranging from real estate to automobiles.

When a person agrees to a property insurance policy, they usually have the option of including liability coverage, which can be used in the event of an accident resulting in injury to another person or damage to another person’s property. Personal insurance coverage is generally bundled for homeowners, car, renters, and landlord insurance, among other policy types.

Casualty insurance, or liability insurance, varies from one policy type to another. For instance, car insurance policies not only feature liability coverage, but also comprehensive and collision coverage to offer additional protection in specific auto collision scenarios. Liability coverage for renters, by comparison, not only protects the renter’s property from damage or theft, but can also be used by the renter to cover damages to the landlord’s property.

Regardless of the property type, it is important for the holder to fully understand what kinds of accidents and damages are covered and which are not. Flood insurance, for example, is typically not mandatory, but should be strongly considered by property owners living in flood zones.

Workers’ Compensation Coverage for California Small Businesses

Shawn Michael Kraatz is a California, insurance executive and partner with Alliant Insurance Services. Delivering a host of cost-competitive services, Shawn M. Kraatz has in-depth knowledge of property, casualty, workers’ compensation, and general liability coverage.

In California, nearly 99 percent of the state’s enterprises are small businesses, with 3.9 million small business employing approximately seven million people, or nearly half the state’s workforce. Every employer statewide with at least one employee is required to procure workers’ compensation coverage, which covers costs if the employee gets injured or becomes sick for any work-related reason.

Various benefits are grouped under workers’ compensation coverage, depending on the industry and type of business. These benefits include medical care and temporary or permanent disability benefits, as well as death benefits. They also extend to supplemental job displacement benefits and return-to-work supplements. Even directors and executive officers of companies must have such insurance, except in cases where the directors and officers fully own the business.

Beyond the mandated aspect of coverage, worker’s compensation insurance is critical to California business owners’ financial wellbeing. The state ranks fifth nationwide, in terms of risk of being sued by employees. State carriers generally recommend that small businesses purchase commercial liability insurance in the $500,000 to $1 million range. Typically, this is sufficient, not only to cover workers’ medical expenses, but also the expenses associated with defense and judgments in a court of law.

What Is an Owner-Controlled Insurance Program?

The first vice president of Alliant Insurance Services in Newport Beach, California, Shawn Michael Kraatz is an insurance broker who has served public entities and real estate owners for more than two decades. Shawn M. Kraatz’s expertise in property and casualty insurance extends to general liability and workers’ compensation, as well as owner-controlled insurance programs (OCIP).
An owner-controlled insurance program (OCIP) is a consolidated form of property insurance package that offers multi-faceted coverage for property owners. This single insurance plan covers a diverse spectrum of potential liabilities from construction projects – including builders risk, worker’s compensation, general liability, and excess liability. Property owners with large commercial construction budgets exceeding $50-100 million typically purchase OCIP.
OCIPs are sometimes called wrap-up insurance programs. A property owner can lower insurance costs through OCIPs because the plan helps remove the extra costs of insurance policies that could be integrated into contractor and subcontractor bids. Without a controlled insurance program like OCIP, contractors and subcontractors will purchase separate policies for pertinent sources of liabilities, which significantly increases the project budget for the property owner. With OCIP, property owners can reduce insurance costs while ensuring that potential sources of liability are covered.

IRMI’s Energy Risk and Insurance Conference is Now Virtual

An insurance broker based in Orange County, California, Shawn Kraatz has served as first vice president of Alliant Insurance Services since 2000. Over the course of his career in the insurance industry, Shawn Kraatz has provided a variety of services to his clients, from workers’ compensation and general liability insurance to environmental and property insurance. To remain updated on insurance industry matters, he often attends conferences and events. One such conference is the Energy Risk and Insurance Conference (ERIC).

ERIC is held annually by the International Risk Management Institute (IRMI). With the global COVID-19 pandemic making in-person conferences impossible, ERIC was held virtually this year. Moving the conference online has allowed for a more affordable and convenient experience, giving eligible energy company employees and contractors the chance to access recorded sessions on demand for as long as six months after the conference date. Furthermore, this year’s conference has focused on the emerging risks that energy companies are facing and on unique risk management solutions. One of the speakers at the conference was Robert Lane, the executive vice president of Alliant Specialty Claims Resolution Services.

2020 IRMI Energy Risk and Insurance Conference Meets Virtually

A longtime insurance executive, Shawn Kraatz is the first vice president of Alliant Insurance in Newport Beach, California, and specializes in casualty and property insurance. As part of his work, Shawn Kraatz stays current on industry developments. One source for such information was the 2020 Energy Risk & Insurance Conference, which met virtually on November 18-19, 2020. Sponsored by the International Risk Management Institute, the online gathering covered a variety of topics relating to energy production. Highlights of the event were sessions covering:

The Future for Oil and Gas Producers
Faced with challenges from the COVID-19 pandemic and other events, attendees in the oil and gas sector learned about changes in worldwide demand for their products and new patterns of American energy consumption.

Catastrophic Events
Natural and human-caused disasters, as well as expensive liability awards, pose significant problems for insurance companies. Experts covered topics such as legal issues, coordination of different types of coverage, and near-term responses after an event.

Oil Field and Pipeline Losses
Presenters looked at steps to be taken in the wake of accidents, such as investigations of the mishap, proper handling of evidence, and salvage of damaged property.

California Set to Mitigate Wildfire-Related Insurance Risks

Based in Southern California, Shawn Kraatz is an Alliant Insurance Services executive who provides a range of solutions spanning casualty and real estate coverage. Trend-focused, Shawn Kraatz follows the developments in California insurance law closely.

A recent Insurance Journal article focused on a pledge made by the state’s insurance commissioner to provide residents with protection, against a backdrop of wildfire risks that have caused private insurers to pull back from riskier regions. Through mid-October 2020, some 8,600 wildfires were responsible for 4.1 million acres being burned and the destruction of 9,200 structures. This is part of a broader trend that has been ongoing for several years and resulted in home insurance that can be challenging to obtain.

Commissioner Lara has a plan to increase fire mitigation incentives, set in place transparent fire risk scores, and create statewide standards related to hardened homes. At the same time, his stated aim is to protect market solvency by implementing rules that require “adequate and justifiable” insurance coverage. The aim is to encourage the private insurance market to continue to function in regions of the state considered risky.

AGRiP Sponsors Pooling Today Broadcast Event

California resident and first vice president at Alliant Insurance in Newport Beach, Shawn Kraatz, is a broker for real estate owners and public entities. Outside of his official duties, Shawn Kraatz’s interests include the Association of Governmental Risk Pools (AGRiP), an organization that connects groups that want to engage in risk pooling.

The practice of risk pooling involves insurance companies joining together to form a pool that protects them in the event of a catastrophe, such as a flood or earthquake. More than forming a partnership, these companies become one. On October 14 and 15, 2020, AGRiP will co-present Pooling Today, an event featuring former basketball player Magic Johnson as keynote speaker.

The virtual broadcast, which will address issues affecting pools, reciprocals, and joint powers authorities, is the combined effort of AGRiP, the California Association of Joint Powers Authorities, and the National League of Cities Risk Information Sharing Consortium. On October 14 and 15, the live transmission will discuss how pools help their members, issues related to COVID-19, climate change, law enforcement practices, and cyber-security.

Should Insurance Companies Hire During the Pandemic?

Based in Costa Mesa, California, Shawn Kraatz is a property insurance broker who serves as first vice president at Alliant Insurance. In this capacity, Shawn Kraatz draws on decades of experience as a property and casualty insurance broker for public entities and real estate owners throughout the country.

The COVID-19 pandemic has result in loss of jobs across many industries, the insurance industry included. Many insurance pools—defined as smaller entities that join together to buy insurance with better rates and coverage—have had to lay off their employees to stay afloat. However, according to the Association of Governmental Risk Pools, in anticipation of an economic rebound, now could be the best time to hire.

In the past, the insurance industry has hired more workers than other sectors after a recession. Also, during a period such as this, there are many unemployed and highly-qualified candidates willing to work at several pools. The shift towards remote work also widens the range of candidates available, making qualified candidates very easy to find.