Owner's Protective Professional Indemnity (OPPI) insurance was developed to provide project owners with an alternative insurance solution when the architect's or engineer's (A&E's) coverage is insufficient or not available. The OPPI policy indemnifies the owner for losses arising out of the architect's or engineer's negligence in performing professional services on the owner's project or projects. The underlying A&E policy is supplemented instead of replaced, therefore improving the owner's potential recovery.
With OPPI, the owner is the named insured and controls the program and obtains coverage in excess of what is available from the A&E's insurance. The OPPI policy also offers “difference in-conditions coverage” to the extent that the policy terms and conditions are broader than the underlying A&E policies. (ie: mold, contractual liability, construction management and habitational exclusions) In addition, the policy has an indemnity feature that will indemnify the owner for damages or losses in excess of the architect's or engineer's available insurance or self insured retention (SIR) as well as provide third-party defense costs incurred by the owner in defending third parties' claims arising out of the services performed by the architect, engineer or contractor.
Target Classes
- Stadiums
- Airports
- Casinos, Hotels and Resorts
- Design-Build Projects
- Power/Industrial Projects
- Prisons
- Schools/Colleges
- Commercial Office Buildings
|
- Wastewater Facilities
- Transportation (Toll Roads, Subways, etc...)
- Residential
- Retail
- Pharmaceutical
- Hospitals
- Manufacturing
- And more...
|
Highlights
- Less expensive than project specific policies or wrap-up policies, the OPPI policy provides an owner a cost-effective alternative to costly project insurance
- OPPI is typically 50-60% less than project professional liability policies, and those limits typically end up paying for defense costs
- All the benefits of having an owner controlled program exist, such as primary protection for the owner, consistency in coverage and reduced cost
- Provides adequate risk protection allow increased financial security through the term of the project
- Contractor's pollution coverage can be included providing the owner with excess coverage for pollution claims, including mold
- The SIR only applies in the event the underlying design professional's coverage is impaired or limits are eroded. The SIR does not apply when the underlying design professional's policy is unimpaired or limits are not eroded.
- Allows for flexibility in selection of design professionals and reduces potential conflicts
- Retroactive coverage is available
- Coverage can be provided for the liability of the owner's professional services in the event the owner has an engineering/construction entity on staff
Policy Terms
- OPPI can be written on a project specific or blanket (covering all construction projects by the owner) basis
- Up to 10 years - Project policies insuring specific projects (inclusive of Extended Reporting Period)
Retentions
- $100,000 minimum and are structured as self insured retentions. Note: The SIR only applies in the event that the underlying design professional's professional liability policy is impaired or eroded.
Minimum Insurance Requirements For Design Professionals
As a requirement of coverage, typical OPPI policies request that the underlying design professional carry a professional liability policy with at least $1,000,000 per loss/$1,000,000 aggregate limits of liability. Higher limit requirements may be applied for different types of projects and for cost savings.
Premiums
- Typical premiums begin around $25,000 for the first $1M per loss/$1M aggregate limit of liability
Availability
Download this fact sheet
| Contact Us |
| |
|
Greg Steinman
Eastern Region, VP
212.293.3941
Email
|
Find A Broker
|
| |
Jim Hamilton
Western Region, VP
303.820.2626
Email
|
|
