NJSDA OWNER CONTROLLED INSURANCE PROGRAM
The New Jersey Schools Development Authority (NJSDA), an independent authority of the State of New Jersey, uses an Owner Controlled Insurance Program (OCIP) to provide on-site General Liability, Workers Compensation, Excess Liability, and Builders Risk coverage for eligible contractors and eligible subcontractors, of any tier, providing direct labor to the NJSDA’s School Facilities Project.
The contractor and subcontractors will be required to submit a Certificate of Insurance to show proof of insurance for coverage that the OCIP does NOT provide. These coverages include Automobile Liability, Contractors Equipment (machinery, tools and equipment), General Liability and Workers Compensation for off-site activities, Professional Liability and Environmental/Pollution Liability (if required by contract). The Authority agrees to pay all premiums associated with the OCIP, unless otherwise stated in the contract documents. While the OCIP is intended to provide broad coverage and high limits, the OCIP is not intended to meet all the insurance needs of the contractor or subcontractors.
The contractor and their respective eligible subcontractors of all tiers agree to submit Bid Proposals net of insurance costs for these coverages. Participation in the OCIP is mandatory, but not automatic, unless otherwise determined by the NJSDA.
We recommend that contractors and subcontractors discuss the OCIP and their contract documents with their insurance agent or consultant to assure that other proper coverage is acquired and maintained.
Contractors and eligible subcontractors, of every tier, will not be permitted to start any construction work until they have received confirmation of enrollment from the NJSDA OCIP Administrator.
Ineligible contractors/subcontractors include, but are not limited to, consultants, suppliers (that do not perform or subcontract installation), vendors, material dealers, guard services and truckers (including delivery to a project site and removal of materials from the project site if this activity is the only scope or work performed), other temporary project services, Abatement of lead, asbestos and hazardous materials, off-site fabricators and off-site workers such as clerical, salespersons. These firms must submit Certificates of Insurance, evidencing all insurance coverages required by the contract documents regardless of eligibility.
Please refer to the OCIP Insurance Procedures and Enrollment Manual for insurance coverage and limits, additional insurance requirements and responsibilities.