GC Reduces Premium on Builder’s Risk by More Than $250K with Procore Risk Advisors

An east coast general contractor has a rich history of delivering successful projects across commercial, public, and municipal sectors. Their reputation, built over 60 years in the industry, has been solidified through their focus on safety, skilled construction teams, and excellence in community-oriented projects.

Project Details

The Southeast division was bidding on a $45 million water treatment project in Florida. This renovation and expansion involved a new Biological Nutrient Removal (BNR) facility, addressing wastewater needs. Despite being far enough from the coast to avoid storm surge, the project faced the potential threat of hurricane exposure and high hazard flood risks. Additionally, the nature of water treatment projects poses elevated risks during the course of construction.

The Solution

The contractor reached out to Procore Risk Advisors, who immediately addressed concerns and provided tailored solutions. Leveraging an understanding of the project's needs and the construction insurance marketplace, the broker from Procore Risk Advisors offered strategic guidance and sought coverage options that aligned with the project's scope and risks.

Despite challenges with other carriers who failed to fully understand the project and the risk involved, Procore Risk Advisors navigated the complexities and secured an indication with pricing and terms more in line with expectations.

The Results

Procore Risk Advisors' intervention yielded significant cost savings and improved coverage for the contractor. The pricing obtained was approximately half of the original indication, resulting in savings of about $250,000. Moreover, the terms were enhanced, with increased flood and wind coverage, providing greater protection for the project. With an appropriate indication, the contractor’s bid became more competitive and helped ensure the contractor won the project.

As the project start date approached, Procore Risk Advisors continued to advocate for the contractor, securing further improvements in terms and reducing premiums by approximately 10% by understanding the project’s phasing schedule. These savings not only boosted the project's potential profitability but also enhanced its resilience against unforeseen challenges.

By securing comprehensive and cost-effective insurance coverage, Procore Risk Advisors enabled the contractor to confidently pursue and execute the Southeast water treatment project, contributing to the continued growth and success of their business.

CASE STUDY