When a contractor works on someone else’s property and someone gets hurt, the owner can be drawn into the claim. An OCP policy is designed for that situation. The contractor pays for it, the owner’s name goes on it as the named insured, and it is designed to respond to the owner’s liability for the contractor’s acts or omissions on that job plus the owner’s general supervision of the work. It does not protect the contractor who bought it, and it excludes injury or damage that happens after the work is completed. It is different from adding the owner as an additional insured on the contractor’s own policy, and some contracts ask for both.
How an OCP policy works
An OCP is its own policy, separate from the contractor’s general liability. Three parties matter:
- The designated contractor buys and pays for the policy. It gets no liability protection from it, so it still needs its own general liability policy.
- The named insured is the party the work is being done for: usually the project owner, or a general contractor when the designated contractor is a sub.
- The project is spelled out on the declarations. Coverage applies to operations performed for the named insured by the designated contractor at the location shown there, not to the contractor’s other jobs.
The standard ISO form is CG 00 09, Owners and Contractors Protective Liability Coverage Form, Coverage for Operations of Designated Contractor. Contracts sometimes name a specific edition, so I check the insurance section for the exact form before I ask a carrier for it.
What it covers and what it doesn’t
- Vicarious liability. It is designed to respond when the owner is held liable for bodily injury or property damage caused, in whole or in part, by the designated contractor’s acts or omissions at the listed location.
- General supervision. It also responds to the owner’s own acts or omissions in the general supervision of the contractor’s work. The form doesn’t define “general supervision.” Courts can read it broadly, and some have read it narrowly.
- Not the owner’s other negligence. The owner’s own acts outside general supervision are excluded.
- Not completed operations. Injury or damage that happens after the work is completed, or after it is put to its intended use by anyone other than another contractor or sub working for the designated contractor on that project, is excluded.
- Only its own limits. The owner gets the limits on the OCP declarations. The contractor’s umbrella usually doesn’t sit on top of them.
When owners and agencies require it
OCP is a contract requirement, not a general legal one. Whether you need it, and on what form, depends on the owner and the contract, and public-agency rules vary by state. Two examples:
- New York. The state’s procurement guidelines call for a separate OCP policy written on a project basis for the contracting agency and the People of the State of New York, with the agency as named insured, whenever the agency specifies it. Street, road, highway and bridge work uses a highway form, CG 00 14; other projects use CG 00 09. The guidelines ask for the OCP policy itself to be furnished to the agency.
- Indiana. An INDOT recurring special provision revising Section 103 of its standard specifications makes the State of Indiana, care of INDOT, the named insured on the OCP, and adds a local governmental agency when the contract says so.
Railroads ask for a cousin of this policy. New York’s guidelines describe railroad protective liability as serving essentially the same purpose as OCP, with the railroad as named insured, and require it whenever work is done within 50 feet of the tracks or a railroad employee is assigned to the work.
OCP vs. additional insured status
Additional insured status is an endorsement on the contractor’s own general liability policy, such as CG 20 10 for ongoing work and CG 20 37 for completed operations. The two approaches trade off:
- OCP gives the owner limits it doesn’t share with anyone, and losses paid under it usually stay outside the contractor’s own insurance program. But it is narrow and has no completed operations coverage.
- Additional insured status shares the contractor’s limits with other insureds, can reach the contractor’s umbrella or excess, and can extend to completed operations through CG 20 37.
When a contract asks for an OCP, underwriters want the owner’s exact legal name as the contract states it, the project location and description, the contract price between the owner and the designated contractor, and the limits the contract requires. Your own contractor insurance program needs to be in place too, since the OCP doesn’t cover you.
Common questions
Who pays for an OCP policy?
The contractor doing the work, called the designated contractor, buys and pays for it. The owner or general contractor it is working for is the named insured.
Does an OCP policy cover the contractor who buys it?
No. The designated contractor gets no liability protection from the OCP and needs its own general liability policy.
What is the ISO form for OCP?
CG 00 09, the Owners and Contractors Protective Liability Coverage Form. New York’s guidelines call for a separate highway form, CG 00 14, for street, road, highway and bridge work.
Does OCP cover claims after the job is finished?
Generally no. The form excludes injury or damage that occurs after the work is completed or put to its intended use, so it has no completed operations coverage.
Is OCP the same as being an additional insured?
No. Additional insured status is an endorsement on the contractor’s own policy and shares its limits. An OCP is a separate policy with limits that belong only to the named insured.
Sources
- IRMI glossary: owners and contractors protective (OCP) liability coverage
- IRMI expert commentary: OCP Liability versus Additional Insured Coverage
- New York State Office of General Services: guidelines for insurance requirements in contracts
- INDOT recurring special provision 103-C-036: owner’s and contractor’s protective liability insurance
General information about owners and contractors protective (OCP) liability insurance as of October 2026, not legal or tax advice; the policy form, endorsements and your contract’s insurance requirements control. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.