Builder’s Risk Insurance
Presented by The Hanover Insurance Group
Marine Advantage Unit
March 30, 2010
Builders Risk
• Who needs coverage for new
construction?
– Owners
– General Contractors
– Sub Contractors
• Who needs to be named on the policy?
– Owners
– General Contractors
– Sub Contractors
Types of Projects
• New construction
• Additions
• Renovations including the Existing
Structure
• Renovations excluding the Existing
Structure
– This is an Installation
Floater, which we can
also quote
Hanover’s Appetite
• $100 million available capacity for superior
construction
• Most types of Construction can be considered
– Frame, Joisted Masonry, Non-Combustible, Masonry
Non-Combustible, Fire Resistive
• We have a proprietary Homebuilders Form
– Supplemental coverage and coverage extensions
tailored to the needs of residential contractors
• Model Homes and Contents coverage is available
• Coverage is available on a reporting basis
• Renovations can be considered
Information needed to
quote?
• ACORD Builders Risk application completed
–
–
–
–
Hard and Soft costs
Location
Job term
General Contractor
• Renovation Supplement (if applicable)
• COPE
– Construction
• Number of floors, square footage, etc.
– Occupancy (Intended)
– Public and private protection
– Exposures
Basic Coverages
• Hard Costs
– Structure and materials
• Soft Costs (Optional)
– Design fees, advertising, Realty taxes, Interest,
Rental income, Business Income, Professional Fees
• Equipment Breakdown (Optional)
• Transit and Off-Site Storage
– Coverage for materials that will be a permanent part
of the completed structure
– Limits built into the form can be increased
Other Information
• Length of job and policy term
– We write coverage for the entire term of the job
– Rate remains the same from start to finish. Pro-rata
cancellation is offered, subject to any minimum
premium
– Extensions will be considered, usually at the original
rate
• Waiver of Subrogation
– Included in form, applies if subrogation is waived in
writing on the contract prior to a loss
Catastrophe Perils
• We can offer Flood
and Earthquake
depending on the
location
• We have a limited
appetite on coastal
locations
Completed Value Rating
• Our rates contemplate that there is no exposure
on Day 1 and 100% exposure on the last day of
the job
– 55% credit already built into the rates
• If the policy limit is changed, the premium is
calculated back to the original effective date
Special Notes
• Turn-around Time
– We will have a quote back to you by your target date
• Online Builder’s Risk (Not available everywhere)
–
–
–
–
–
–
For new residential and mixed-residential construction
Referrals are approved/denied within 24 hours
Quote, issue, and print the policy in your office
20% commission
Payment plans available on Direct Bill
Accessed through The Agency Place
• Green Building Coverage Available
– For LEED-certified buildings
Questions?
Other Coverage options that Hanover Inland Marine can offer for
your Contractors:
•Installation Floater
•Contractors Equipment
•Equipment Dealers
•Property
Contact your Inland Marine underwriter with any questions.