Owner’s Protective Professional Indemnity (OPPI)

Add an additional layer of protection to your construction project with OPPI.

The Owner’s Protective Professional Indemnity (OPPI) policy was developed to provide owners of construction projects an alternative to project-specific professional liability policies.

The OPPI serves two functions:
  1. The OPPI provides a way of extending coverage on a project by sitting excess over the design professional/contractor’s professional liability policy
  2. Defends the Owner’s vicarious liability against a third-party claim resulting from a design professional/contractor’s negligence.
  • Cost-effective alternative to project insurance.
  • Offers difference in coverage above the underlying professional liability, including pollution, mold, construction management, and contractual liability.
  • Defense cost for third-party claims arising out of the design professional’s services.
  • Coverage can be provided for liability of the owner’s professional services.
  • All of the Insured’s projects can be added during the policy with little or no additional underwriting.
  • Allows Insured’s flexibility in choosing MWDBE firms due to the ability to cover their professional exposures.
  • Protects the Owner against design professional’s insurance that has been exhausted from other claims activity during a
    specific policy period.
  • Premiums: Typical premiums begin around $75,000 for the $1M per loss/$1M aggregate limit of liability.
  • Policy Forms: OPPI provides the owner with coverage for damages that exceed the primary professional liability policy of the design professional arising out of professional services performed by the design professionals. OPPI offers an owner “difference in conditions” coverage above the design professional’s professional liability insurance, and offers defense for third party claims. OPPI can be written on a project-specific or “blanket” (all construction projects of the owner) basis.
  • Policy Term: Annual – Blanket Policy (meaning all projects under construction for the owner/named insured). Up to 5 years with a 5-year extended reporting period for project specific policies.
  • Minimum Insurance Requirements for Design Professionals: As a requirement of coverage, typical OPPI policies request that the underlying design professional carry a professional liability policy with at least $1M per loss/$1M aggregate limits of liability. Higher limit requirements may be applied for different types of projects and for cost savings.
  • Retentions: $100,000 minimum and are self-insured retentions. The SIR only applies in the event the underlying design professional’s professional liability is impaired or exhausted. If that happens, the SIR under the OPPI applies only to that portion that is not available.
OPPI Policy

OPPI is a policy that extends coverage to the owner only, for damages arising out of professional liability resulting from the design team on a project.

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