OCIP Insurance Manual

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Owner Controlled Insurance Program (OCIP) {Project Name} {Project Address} OCIP Insurance Manual This Manual is a Contract Document SEPTA OCIP DRAFT Manual 1/22/15 TABLE OF CONTENTS Table of Content TABLE
Owner Controlled Insurance Program (OCIP) {Project Name} {Project Address} OCIP Insurance Manual This Manual is a Contract Document SEPTA OCIP DRAFT Manual 1/22/15 TABLE OF CONTENTS Table of Content TABLE OF CONTENTS... 2 Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 OVERVIEW... 3 ABOUT THIS MANUAL... 3 What This Manual Does... 4 What this Manual Does NOT Do... 4 OCIP PROJECT DIRECTORY... 5 OCIP ADMINISTRATION... 5 PROJECT DEFINITIONS... 6 OCIP INSURANCE COVERAGE... 8 EXCLUDED PARTIES... 8 EVIDENCE OF COVERAGE... 8 DESCRIPTION OF OCIP COVERAGES... 8 PRIME CONTRACTOR AND SUBCONTRACTOR REQUIRED COVERAGE VERIFICATION OF REQUIRED COVERAGES PRIME CONTRACTOR AND SUBCONTRACTOR MAINTAINED COVERAGES PROPERTY INSURANCE PRIME CONTRACTOR AND SUBCONTRACTOR RESPONSIBILITIES PRIME CONTRACTOR AND SUBCONTRACTOR BIDS IDENTIFYING PRIME CONTRACTOR, SUBCONTRACTOR AND SUB-SUBCONTRACTOR INSURANCE COSTS ENROLLMENT ASSIGNMENT OF PREMIUMS PAYROLL REPORTS SAFETY STANDARDS AND PRIME CONTRACTOR AND SUBCONTRACTOR PREQUALIFICATION CHANGE ORDER PROCEDURES INSURANCE COMPANY PAYROLL AUDIT CLOSEOUT AND AUDIT PROCEDURES OCIP TERMINATION OR MODIFICATION CLAIM PROCEDURES GENERAL PROCEDURES INVESTIGATION ASSISTANCE RETURN TO WORK PROGRAM SAMPLE OFFER OF TEMPORARY ALTERNATIVE POSITION LETTER WORKERS COMPENSATION CLAIMS LIABILITY CLAIMS PROPERTY CLAIMS AUTOMOBILE CLAIMS POLLUTION CLAIMS FORMS ENROLLMENT APPLICATION - FORM ON-SITE PAYROLL REPORT - FORM NOTICE OF WORK COMPLETION - FORM EXHIBIT A - EXPERIENCE MODIFICATION RATING EXCEPTION REQUEST EXHIBIT B - EXPERIENCE MODIFICATION RATING EXCEPTION QUESTIONNAIRE EXHIBIT C - DRUG AND ALCOHOL TESTING PROGRAM - POLICY AND PROCEDURE OLD REPUBLIC CLAIM KIT Page 2 of 45 O V E R V I E W Section 1 Overview Welcome to SEPTA s Owner Controlled Insurance Program (OCIP) Southeastern Pennsylvania Transportation Authority has arranged for the {Project Name} project to be insured under its Owner Controlled Insurance Program (OCIP). An OCIP is an insurance program for Southeastern Pennsylvania Transportation Authority, The Prime Contractor and all Enrolled Subcontractors that provides certain insurance for Work performed at the Project Site. There are many benefits of Southeastern Pennsylvania Transportation Authority s OCIP. The OCIP provides more comprehensive coverage than many individual policies. All Enrolled Parties have uniform coverage and uniform limits. Additionally, Southeastern Pennsylvania Transportation Authority has found that an OCIP positively influences overall project safety. However, certain Subcontractors are excluded from this program. These parties are identified in Section 3 of this manual. You should notify your insurer(s) to endorse your coverage for on-site activities and related costs to be excess and contingent over the OCIP coverage provided under this Program. Each bidder is to bid without the cost of their on-site workers compensation, employer s liability, and general liability primary and excess insurance. NOTE: Insurance coverages and limits provided under the OCIP are limited in scope and are specific to work performed after the inception date of your enrollment into this program. Enrollment into the OCIP will take place before you start work on site. Your insurance representative should review this information. Any additional coverage you may wish to purchase will be at your option and expense. About This Manual Southeastern Pennsylvania Transportation Authority (SEPTA) and Aon Risk Services (Aon) prepared this Insurance Manual. SEPTA is the Sponsor for this OCIP. Aon is the OCIP Administrator for this OCIP. The manual is designed to identify, define and assign responsibilities for the administration of the OCIP for this project. Page 3 of 45 O V E R V I E W What This Manual Does This Manual: Generally describes the structure of the OCIP Identifies responsibilities of the various parties involved in the Project Provides a basic description of OCIP coverage Describes audit and administrative procedures Provides answers to basic questions about the OCIP What this Manual Does NOT Do This Manual does not: Provide coverage interpretations Provide complete information about coverages and exclusions Provide answers to specific claims questions Refer questions concerning the OCIP, its administration or coverages to the appropriate party identified in the Project Directory in Section 2. DISCLAIMER: The information in this manual is intended to outline the OCIP. If any conflict exists between this manual and the OCIP insurance policies, the OCIP insurance policies will govern. If any conflict exists between this manual and the Contract, the Contract controls. Page 4 of 45 OCIP PROJECT DIRECTOR Y Section 2 OCIP Project Directory OCIP Administration Aon Risk Services, Inc. 625 Liberty Avenue Pittsburgh, PA Senior Specialists Handling All Matters for Subcontractors: Fred Mesa Aon Risk Services, Inc th St. NW Suite 600 Washington, DC (Toll Free Telephone) Option 3 (Fax) ( ) Please show as a regarding on all faxes and s to Fred Mesa: SEPTA OCIP Customer # Program Manager Justin Johnson Program Administrator Chris Thompson Claim Consultant Todd Macdermott (Telephone) 412/ (Cell) 412/ ( ) (Telephone) (Fax) ( ) (Telephone) (Fax) ( ) SEPTA Project Manager TBD (Cell) TBD ( ) TBD Project Safety Manager Ron Benson (Cell) ( ) Prime Contractor Safety Manager Safety Manager TBD (Cell) TBD ( ) TBD Page 5 of 45 PROJECT DEFINITIONS Section 3 Project Definitions The following list includes key OCIP definitions. OCIP: OCIP Administrator: OCIP Insurer: OCIP Sponsor: Certificate of Insurance: Eligible Parties/Eligible Subcontractor: Enrolled Parties/Enrolled Subcontractor: A OCIP or Owner Controlled Insurance Program is a coordinated insurance program providing certain coverages, as defined herein, for SEPTA and eligible Enrolled Parties performing Work at the Project Site. Aon Risk Services, Inc. The insurance company (ies) named on a policy or certificate of insurance providing coverage for the OCIP. SEPTA A document providing evidence of existing coverage for a particular insurance policy or policies. Parties performing labor or services at the Project Site who are eligible to enroll in the OCIP unless it is an Excluded Party. Those eligible Subcontractors who have submitted all necessary enrollment information as detailed in Section 6 and have been accepted into the OCIP as evidenced by a Welcome Letter and Certificate of Insurance from the OCIP Administrator. Page 6 of 45 PROJECT DEFINITIONS Excluded Parties/Excluded Subcontractors: At the discretion of SEPTA, or subject to State regulations, the following parties will be excluded: (1) Hazardous materials remediation, removal and/or transport companies and their consultants; (2) Any Subcontractor performing Structural Demolition that utilizes explosives (3) Architects, engineers, and soil testing engineers, and their consultants; (4) Vendors, suppliers, fabricators, material dealers, truckers, haulers, drivers and others who merely transport, pickup, deliver, or carry materials, personnel, parts or equipment or any other items or persons to or from the Project Site; (5) Subcontractors, and any of their respective Sub- Subcontractors, who do not perform any actual labor on the Project Site; (6) Subcontractors/Vendors performing work under a professional services agreement (e.g. a land surveyor); (7) Subcontractors performing site security or any labor staffing firms; (8) Any parties excluded from participation in the OCIP by law; (9) Any subcontractor who has payroll less than $2,500. (10) SEPTA may include or exclude any parties or entities not specifically identified in this manual at its sole discretion, even if otherwise eligible. Project Site: Contract: Subcontractor: Welcome Letter: Work: Generally defined as the project location (designated in this manual and more fully identified in the Contract) and adjacent or nearby areas where incidental operations are performed excluding permanent locations of any insured party. A written or oral agreement between the Sponsor and the Prime Contractor as well as between the Prime Contractor and Subcontractor, including Sub-Subcontractors of any tier. Includes only those persons, firms, joint venture entities, corporations, or other parties that enter into a Contract with SEPTA, its Prime Contractor or its Subcontractors to perform Work at the Project Site. A document issued by the OCIP Administrator, which confirms acceptance/enrollment of the applicant into the OCIP. Operations, as fully described in the Contract, performed at the Project Site. Page 7 of 45 O C I P I N S U R A N C E C O V E R A G E Section 4 OCIP Insurance Coverage This chapter provides a brief description of the OCIP Coverage. The Prime Contractor and Subcontractors should refer to the actual OCIP insurance policies for details concerning coverage, exclusions and limitations. Excluded Parties Excluded Parties are not granted any insurance coverage under the OCIP. Excluded Parties must meet the insurance requirements established in Section 5 and provide evidence of coverage to the Prime Contractor. Evidence of Coverage Each Enrolled Party will be issued an individual workers compensation policy provided by the OCIP Insurer. The OCIP Administrator will provide a Certificate of Insurance as evidence of workers compensation, general liability, and excess liability insurance coverage provided to each Enrolled Party. Each Enrolled Party will be added as a named insured to the OCIP general liability insurance policy. The OCIP Insurer will furnish other documents to Enrolled Parties, including claim forms, and will post notices, etc. Copies of the general liability policy will be available upon written request. Description of OCIP Coverages The following descriptions on these pages provide a summary of coverages ONLY. The Prime Contractor and Subcontractors should refer to the policies for actual terms, conditions, exclusions and limitations. A separate worker compensation policy will be issued to each Enrolled Party. SEPTA will furnish the following coverages for the benefit of all Enrolled Parties performing Work at the Project Site. Workers Compensation and Employer s Liability Insurance Carrier: Old Republic Insurance Company Coverage: Statutory limits required by the workers compensation laws of the applicable jurisdiction, excluding monopolistic states, with Employer s Liability. Part One - Workers Compensation: Statutory Limit Part Two - Employer s Liability: Annual Limits Per Enrolled Party Bodily Injury by Accident, each accident $ 1,000,000 Bodily Injury by Disease, each employee $ 1,000,000 Bodily Injury by Disease, policy limit $ 1,000,000 Page 8 of 45 O C I P I N S U R A N C E C O V E R A G E This policy does not cover off-site operations. A single general liability policy will be issued for all Enrolled Parties with all Enrolled Parties Named as Insureds Commercial General Liability Insurance Carrier: Old Republic Insurance Company Coverage: Third Party Bodily Injury and Property Damage Liability. Limits of Liability Shared by All Enrolled Parties General Aggregate Per Project $ 4,000,000 Products/Completed Operations Aggregate Per Project $ 4,000,000 Personal and Advertising Injury Limit $ 2,000,000 Each Occurrence Limit $ 2,000,000 Fire Damage Legal Liability (any one fire) $ 300,000 Medical Expense Limit (any one person) $ 10,000 This insurance will NOT provide coverage for products liability to any vendor, supplier, offsite fabricator, material dealer or other party for any product manufactured, assembled or otherwise worked upon away from the Project Site. This policy does not cover off-site operations. Twelve (12) years or Statute of Repose, whichever is less, Products & Completed Operations Extension beyond final acceptance of the entire Project with a single nonreinstated aggregate limit. The policy contains exclusions. Please see the policy for a complete list of exclusions. Single excess liability policies will be issued for all Enrolled Parties. Excess Liability Insurance Carriers: Various Carriers Limits of Liability Shared by All Enrolled Parties Each Occurrence Limit $ 200,000,000 Products/Completed Operations Aggregate Per Project $ 200,000,000 Annual General Aggregate Limit Per Project $ 200,000,000 Policy follows form (provisions, coverages, exclusions, etc.) of underlying Commercial General Liability and Employer s Liability policy wording. This policy does not cover off-site operations. Property of Prime Contractors and Subcontractors Note: The Prime Contractor and Subcontractors are advised to arrange their own insurance for rented, owned, leased or borrowed equipment and materials not intended for inclusion in the Project. Neither the Builders Risk policy nor the OCIP will cover Prime Contractor or Subcontractor property. Page 9 of 45 S U B C O N T R A C T O R - R E Q U I R E D C O V E R A G E Section 5 Prime Contractor and Subcontractor Required Coverage The Prime Contractor, Subcontractors and all Sub- Subcontractors are required to maintain coverage to protect against losses that occur away from the Project Site or that are otherwise not covered under the OCIP. All Prime Contractor Certificates of Insurance must be submitted to SEPTA prior to Mobilization. See OCIP Insurance Exhibit to the Contract. The Prime Contractor, Subcontractors and Sub-Subcontractors are required to maintain insurance coverage for the duration of the Contract that protects SEPTA from liabilities. These liabilities may arise from the Prime Contractor or Subcontractor s operations performed away from the Project Site, from operations not covered by the OCIP, or from operations performed by Excluded Parties. The OCIP places Subcontractors into one of two main categories: Enrolled Parties or Excluded Parties. Enrolled Parties are to provide evidence of Workers Compensation, General Liability and Excess/umbrella liability insurance for off-site activities and Automobile Liability and any other insurance in accordance with the insurance specifications in the Contract. See Sections 3 for the definition of Enrolled Parties. Excluded Parties must provide evidence of Workers Compensation, General Liability, Excess/umbrella liability, Automobile Liability, and any other insurance in accordance with the insurance specifications in the OCIP Insurance Exhibit for all activities including both onsite and off-site activities as per the insurance specifications in the Contract. See Sections 3 for the definition of Excluded Parties. Verification of Required Coverages The Prime Contractor shall provide verification of insurance to SEPTA prior to mobilization and within three (3) days of any renewal, change or replacement of coverage. Refer to the OCIP Insurance Exhibit of your Contract for complete insurance requirements. The Prime Contractors is responsible for monitoring their Subcontractors Certificates of Insurance. Subcontractors are responsible for monitoring their Sub-Subcontractor s Certificates of Insurance. SEPTA reserves the right to disapprove the use of Prime Contractors or Subcontractors that are unable to meet the insurance requirements, or who do not meet other SEPTA policy requirements. Page 10 of 45 S U B C O N T R A C T O R - R E Q U I R E D C O V E R A G E The limits of liability shown in the OCIP Insurance Exhibit for the insurance required of the Prime Contractor, Subcontractors and Sub-Subcontractors are minimum limits only and are not intended to restrict the liability imposed on the Prime Contractors or Subcontractors for work performed under their Contract. Failure of any Enrolled Party or any Excluded Party from the SEPTA OCIP program to file the required Certificates of Insurance will not relieve such party of its responsibility to carry and maintain such insurance. SEPTA and its representatives have the right to stop work or prevent any non-enrolled Subcontractor or Subcontractor of any tier from entering the Project Site until the Subcontractor's Certificate of Insurance has been submitted and approved. Denial of site access for this reason will not result in an acceptable claim for cause for delay. Prime Contractor and Subcontractor Maintained Coverages The OCIP Insurance Exhibit to the Contract details insurance requirements for Enrolled and Excluded Party(s). The Personal Property Insurance section below applies to both Enrolled and Excluded Parties. Personal Property Insurance Enrolled and Excluded Parties must provide their own insurance for owned, leased, rented and borrowed equipment, whether such equipment is located at a Project Site or in transit. Prime Contractors and Subcontractors are solely responsible for any loss or damage to their personal property including, without limitation, property or materials created or provided under their Contract until installed at the Project Site, Prime Contractor and Subcontractor tools and equipment, scaffolding and temporary structures. Page 11 of 45 S U B C O N T R A C T O R R E S P O N SIBILITIES Section 6 Prime Contractor and Subcontractor Responsibilities Throughout the course of the Project, The Prime Contractor and Subcontractors will be responsible for reporting and maintaining certain records as outlined in this section. The Prime Contractor, Subcontractor and its Sub-Subcontractors are required to cooperate with SEPTA and its OCIP Administrator with all aspects of OCIP operation and administration. The responsibilities of the Prime Contractor, Subcontractors and Sub- Subcontractors include, but are not limited to the following: Comply with all aspects of SEPTA's safety program. Provide each Subcontractor and Sub-Subcontractor with a copy of this OCIP Insurance Manual by including it in all Contracts. Complete all Forms in order to Enroll in the OCIP within 5 days of your award of the Contract on the project or no less than 45 days before mobilization and assure each Subcontractor and Sub-Subcontractor enrolls in the OCIP within these timeframes. Provide timely evidence of required insurance to SEPTA. Notify the OCIP Administrator and SEPTA s Project Team of all Subcontractors and Sub-Subcontracts awarded (first tier and subsequent tiers). Subcontractors shall cause all Sub-Subcontractors to submit Forms 3. Maintain and report monthly payroll records. Comply with all OCIP claim procedures. Notify the OCIP Administrator immediately of any insurance cancellation or nonrenewal of your own and Sub-Subcontractor-required insurance. Have a Pennsylvania Workers' Compensation Experience Modification Factor (EMR) not exceeding If the Prime Contractor, Subcontractor or Sub- Subcontractor has an EMR higher than 1.25, they must complete the EMR Exception Request (Attached Exhibit A) and EMR Exception Questionnaire (Attached Exhibit B) in accordance with the OCIP Exhibit. These Exhibits may also be found at the end of this document. If the Prime Contractor, Subcontractor or Sub-Subcontractor has an EMR higher than 1.70, a special exception will need to be granted by the carrier for them to be enrolled into the OCIP. If the Prime Contractor's or Subcontractor's domicile state is not Pennsylvania, their applicable Experience Modification Factor will be used, (i.e., Interstate (NCCI) for Maryland, New Jersey's state-specific modification, etc.). Page 12 of 45 S U B C O N T R A C T O R R E S P O N SIBILITIES It shall be mandatory for the Prime Contractor and all Subcontractors to participate in the Drug and Alcohol Testing Program ( Program ) in order to perform work on this project and each shall be responsible for the payment of drug and alcohol testing services for their respective employees. The mandatory Program is to include (i) preemployment testing prior to being permitted on the project site; (ii) reasonable suspicion based testing when an employee is suspected of being impaired on duty; and (iii) post-accident/incident testing which involves any
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