News & Insights

CASE STUDY

How a bold insurance strategy helped Maryland build safer, smarter schools

By Eric Johnson and Will Mangrum

On a crisp fall morning in 2019, the sound of hammers and saws echoed across a Baltimore construction site where an aging school building was being transformed into a modern hub for students. Amid the bustle of hard hats and scaffolding, another kind of transformation was quietly unfolding—one that wouldn’t make the front page but would save taxpayers millions and protect the very workers doing the rebuilding.

That change came in the form of an Owner-Controlled Insurance Program, or OCIP, a strategy Maryland Stadium Authority (MSA) brought to the ambitious 21st Century School Buildings Program. At first glance, “insurance” may not sound like the stuff of bold reforms. But in practice, this shift was nothing short of game-changing: a move that cut costs by an estimated $8.1 million while dramatically improving worker safety across dozens of sites.

Turning insurance into a tool for savings

Traditionally, construction projects operate like patchwork when it comes to insurance. Each contractor—and every subcontractor down the chain—brings their own policy, often tacking premiums onto their bids. The result? Overlap, inefficiency, and extra costs hidden in plain sight.

OCIP flipped that script. Instead of leaving insurance fragmented, the agency centralized coverage under one roof. By purchasing policies for the entire program, they pooled risk, reduced redundancy, and used the sheer scale of a multi-billion-dollar initiative to negotiate better terms. It worked much like buying in bulk at a warehouse club: savings added up quickly when the purchase involved insurance protection for billions of dollars’ worth of construction.

Building a culture of safety and accountability

The $8.1 million in savings was significant. But the bigger story was safety. OCIP didn’t just change who signed the checks—it changed how work was done. With insurance centralized, the program was able to embed a dedicated safety manager across projects. This wasn’t a clipboard-wielding inspector who dropped in occasionally, but a full-time professional conducting walk-throughs, coordinating training, enforcing OSHA protocols, and instilling a culture of accountability.

The results were clear: fewer injuries, fewer lost-time incidents, and fewer claims. Every avoided accident didn’t just protect a worker—it kept schedules on track and reinforced the financial efficiency of the program. At the same time, OCIP removed a major barrier for small and minority-owned firms. For many of these businesses, the cost of securing individual insurance policies could be prohibitive. By lifting that burden, the program made it easier for local and emerging firms to participate, ensuring the effort reflected and benefited the communities it served. This wasn’t only about building schools; it was also about building opportunity.

A model for future school construction

The success of OCIP has rippled far beyond the walls of the schools it helped build. As Maryland embarks on its next major education infrastructure effort through the Built to Learn Act, OCIP stands as more than an experiment—it’s a proven model. Centralized insurance delivered measurable savings, stronger safety oversight, and a more inclusive playing field for local businesses.

In a world where every dollar counts and every worker’s safety matters, OCIP became a quiet hero of the 21st Century Schools Program. And just like the schools themselves—built to inspire the next generation—the lessons of OCIP may guide smarter, safer, and fairer construction projects across Maryland for years to come.