Northeast General Contractor Improves Builder’s Risk Terms

The Challenge

A prominent northeast commercial builder struggled to get terms that met their needs for a low-income housing complex. The location of the project presented challenging underwriting considerations due to its proximity to flood and hurricane exposed areas which are difficult to navigate amid hardening insurance markets. The firm had been working with other brokers but as the project start date grew closer, they still had yet to identify a builder’s risk program that provided adequate coverage and fit within budget.

The Solution

The contractor, who had best-in-class operations across preconstruction, project management, financial management, and resource management, had captured valuable historical data in the Procore platform. Procore Risk Advisors utilized this data to create a strong narrative and provided an enhanced submission to its carrier partners. The enhanced data in the submission provided credible evidence of construction performance and strong risk management. This encouraged the insurer to provide aggressive insurance terms, and the contractor received a quote that fit the project's budget and met lender requirements. The firm was able to start the project on time.

The Results

Enhanced Client Advocacy

As part of its strategy to help clients mitigate the rise of insurance costs, Procore Risk Advisors utilized unique data from the contractor’s Procore software to create an enhanced submission. The insurer’s underwriter commented that the submission was the most competitive submission that came across his desk in his 20-year career.

Significant Builder's Risk Savings

Even amid a hard market, Procore Risk Advisors delivered a builder’s risk quote that lowered the premium by more than $100,000 and also lowered the deductible by more than $50,000.

Wider Coverage

The builder’s risk program secured by Procore Risk Advisors included flood, providing a wider berth of risk coverage.

CASE STUDY

Securing Favorable Terms
for Builder's Risk Insurance
on $80M Affordable Housing
Apartment Building