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.