Graham negotiated an Owner Controlled Insurance Program (OCIP) that provided the broadest insurance coverage available in the marketplace for each of the participating contractors. Graham’s reputation among carriers for rigorous risk management and safety programs allows us to secure extremely aggressive pricing on OCIPs: Carriers understand that our programs lead to better results, with lower claims frequency and severity.
Using an OCIP for the first time in a quarter century, Penn Medicine was able to exert maximum control over the quality and limits of insurance coverage, including General and Excess Liability and Workers’ Compensation. As a result, project insurance costs to date are over $9.6 million less than they would have been if the contractors each provided their own insurance. This represents a 40% savings for Penn Medicine versus the cost of each contractor providing their own insurance coverage for the project.
A key component that has enabled these savings is the sophisticated claims management strategy implemented for the Pavilion project, including a contractually mandated return-to-work program that requires contractors to return injured workers to the job site when they are medically cleared. As a result, the project’s average lost time incident rate was more than 50% below the national benchmark.
Thanks to the tireless efforts of the entire PennFIRST team, the Pavilion will become a landmark facility for unsurpassed patient care, clinical collaboration, innovation and transformation, and will be fully integrated with Penn Medicine’s world-renowned research capabilities.