MITA Successful in Negotiating OCP Alternative
Thursday, September 06, 2007
After several months of negotiations MITA has been successful in gaining the approvals of the Michigan Department of Transportation (MDOT), Department of Management and Budget, and Attorney General on a proposal that will allow prime contractors an alternative to the Owners and Contractors Protective (OCP) liability policy MDOT currently requires.
Under the approved proposal contractors will be allowed to provide in lieu of the OCP, the project specific bodily injury and property damage insurance via their General Liability (GL) policy. To take advantage of the GL option and provide the desired project specific coverage, contractors will be required to add the following to their GL policy:
1. “Additional Insured” Endorsement – Names the State, the Department, the Commission and all agents and employees thereof, as additional insured on the policy.
2. “Per Project Aggregate” Endorsement – Extends the general aggregate limit to each designated project.
3. Umbrella Policy with a $2,000,000 limit.
“This is a significant accomplishment that makes good business and economic sense,” said Bob Patzer, MITA’s executive vice president. “It allows a contractor to take advantage of the benefits and flexibility their general liability policy affords them, it provides the opportunity to eliminate the “double insuring” we have long debated, and it has the potential to save millions of dollars a year in OCP policy premiums, monies that would be much better spent building new road and bridge projects here in Michigan.”
Contractors who are unable or choose not to take advantage of the GL alternative will still be able to provide the project specific insurance via an OCP policy. We encourage all members to contact your insurance agent to learn how this change in insurance coverage options may benefit you as you bid MDOT projects.
This OCP alternative will be effective on all future projects, starting with those let in the October 5, 2007 letting. Click here to view MDOT’s Special Provision for Indemnification, Damage Liability and Insurance that allows the alternative.
If you have any questions or comments, contact Glenn Bukoski at firstname.lastname@example.org or Doug Needham at email@example.com or by phone at (517) 347-8336.