The Owner-Direct Insurance Program (ODIP) is a cost-saving insurance product that allows counties to take control of their insurance needs on building projects such as jails or law enforcement centers.
When counties utilize the ODIP, they prepare bid specifications that require all contractors and subcontractors to remove their expenses for worker’s compensation insurance coverage from the cost of the project.
Estimates have shown that the cost of worker’s compensation is typically one and one-half (1.5%) to two percent (2%) of the total contract value. Once removed from the cost of the project, the county, as owner of the project, purchases the coverage. By having the county purchase the coverage, they now have control over both the insurance and the project safety program, with the end result often being not only a safer work environment, but also potential cost savings to the county.