Insurance Requirements

NJSDA OWNER CONTROLLED INSURANCE PROGRAM

The New Jersey Schools Development Authority (Authority), an independent authority of the State of New Jersey, has elected to implement an Owner Controlled Insurance Program (NJSDA OCIP) to provide on-site General Liability, Workers Compensation, Excess Liability, and Builder’s Risk Coverage for eligible Contractors and eligible Subcontractors, of any tier, providing direct labor to the Authority’s School Facilities Project (Project). Workers Compensation and Builder’s Risk is not covered on On-Call Demolition Projects. The Authority agrees to pay all premiums associated with the NJSDA OCIP, including deductibles or self-insured retention (giving the Contractor and Subcontractors first dollar coverage), unless otherwise stated in the contract documents. While the NJSDA OCIP is intended to provide broad coverage and high limits, the NJSDA OCIP is not intended to meet all the insurance needs of the Contractor or Subcontractors.

We recommend that Contractors and Subcontractors discuss the NJSDA OCIP with their insurance agent or consultant to assure that other proper coverage is maintained.

Contractors and eligible Subcontractors, of every tier, will not be permitted to start any construction work until they have submitted all required NJSDA OCIP enrollment forms and received confirmation from the NJSDA OCIP Administrative Unit of project enrollment.

Participation in the NJSDA OCIP Program is mandatory, but not automatic, unless otherwise determined by the Authority.

The General Contractor is required to notify the NJSDA OCIP Administrative Unit of all Subcontractors, of any tier, eligible for NJSDA OCIP Program enrollment.

The School Facilities Project Site is designated by the Authority and on file with the NJSDA OCIP Insurance Carriers. The School Facilities Project includes operations necessary or incidental to the work. The Contractor’s or Subcontractor’s regularly established workplace, plant, factory, office, shop, warehouse, yard or other property even if such operations are for fabrications of materials to be used at the job site or training of apprentices will be considered off site.

Subcontractors ineligible for inclusion in the NJSDA OCIP will be required to maintain their own insurance and will be required to participate in the Project Safety Program. Insurance coverage types and limits are shown in Contract General Conditions, as a minimum. Contractors will promptly furnish the Authority, or their designated representative, certificates of insurance giving evidence that all required insurance is in force.

Please refer to the OCIP Insurance Procedures Manuals for insurance coverage and limits, additional insurance requirements and responsibilities.

OCIP II Manuals

OCIP II Forms

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