On a state job in California... An issue has come up regarding a certain kind of insurance requirement. I think it is called O.C.I.P. (i don't know what the acyronm stands for). From what I understand, it is in addition to your general insurance... I guess all the major contractors on the job pool their insurances together somehow for "blanket" or "umbrella" coverage. Has anyone ever done something like this, or heard of it? I am a small company with about 2 mil in insurance, but I guess it's not good enough for the state.

http://en.wikipedia.org/wiki/OCIP

I am not a lawyer or insurance rep. I would remind the customer that you are a rental service and not a contractor. No need to be included in such a scheme.

OCIP stands for owner controlled insurance program, you will also hear CCIP, contractor controlled insurance program.  The contractor is not pooling his insurance with other contractors.  What they are doing is taking the liability for that particular job and covering it on their insurance instead of yours.  What they will do is deduct what they think the cost of your insurance is from your invoice.  The reason they do this is because they must have a good safety record and they can provide insurance cheaper then you can.

If you have any questions please don't hesitate to email me.  I have a lot of experience doing these types of programs.

Matt Kaminsky

One last thing, keep track of your payroll and sales on that job.  Because when the insurance company does your audit at the end of the year they won't count any sales or payroll on jobs that were covered under a CCIP or OCIP.

Matt Kaminsky

There is a enrollment you have to do and then a audit at the end. You deduct your payroll from your insurance at renewal. It is a royal pain. I still charge the same rates anyway.