Product Update

Large Deductibles, OCPs, and Employee Leasing Updates in Construction Risk Management

This release of Construction Risk Management updates several discussions that summarize state laws and regulations, including large deductibles, owners and contractors protective (OCP) liability, and employee leasing.

As the insurance market tightens, many contractors will be looking for ways to offset premium increases, and, for many, the first step will be to move into a large deducible program. The premium for a large deductible program is substantially less than that for first-dollar (or guaranteed cost) insurance. Insurers tend to view large deductible plans favorably as well. In "Large Deductible Plans," find an update of state regulations governing large deductible plans, advantages and disadvantages of these plans, how they impact cash flows, tips for selecting an appropriate deductible level, and more.

A common question for project owners is whether it's better to be an additional insured on the contractor's general liability policy or the named insured on an owners and contractors protective liability policy. As additional insured endorsements have evolved, the answer to that question has become more difficult to answer. "Which Is Better—OCP Policy or Additional Insured Status?" provides an overview of the pros and cons of each approach.

Most states regulate various aspects of employee leasing, including who is responsible for purchasing workers compensation insurance, who gets the protection of the workers compensation statute, and how the workers compensation insurance is to be provided for leased employees. "Employee Leasing Regulations—State Laws" outlines states' positions on these and other issues pertinent to contractors that lease employees.