1. Construction & Real Estate Insurance Discussion
The New Option.
Visibly Different.
Construction & Real Estate Insurance Discussion

2. AGENDA Types of Insurance Wrap-Ups Administration Builder’s Risk
Professional
Environmental
Loss Control
Claims
About Alliant

3. Common Construction Insurance Lines
General Liability
Workers Compensation
Excess Liability
Builders Risk
Contractors Equipment
Covers third party, bodily injury & property damage arising out of premises, operations, products, and completed operations
Provides wage replacement and medical benefits to employees injured in the course of employment
Provides additional limits over the primary general liability
policy with all of the coverage features of the underlying
policies
Property insurance which covers materials and equipment should they sustain a loss or damage from a covered cause during the course of construction
Provides insurance for mobile
machinery, equipment and tools. Covered
equipment may be owned, rented, leased or borrowed

4. Common Construction Insurance Lines
Riggers Liability
Contractors Pollution Liability
Pollution Legal Liability
Project Professional Liability
Owners Protective Professional Indemnity
Insurance for a contractor's liability arising out of the moving of property of others, such as lifting air-conditioning units onto a roof with a crane. The CGL policy excludes "personal property of others in your care, custody or control."
Covers third-party claims for bodily injury and property damage
for remediation costs stemming from pollution incidents resulting from a contractor’s covered operations
Covers property owners for third party bodily injury and property damage and clean-up costs for pollution conditions on owned and operated properties
Covers property owners for bodily injury and property damage arising out of the work of design professionals providing services related to a project
Excess coverage over designer professional policies for project owners for bodily injury and property damage arising out of the work of design professionals

5. Proprietary & Confidential
What is a Wrap-Up?
Wrap-Ups are widely used on public and private sector construction projects
Can be sponsored by owner or general contractor
Through a Wrap, the owner of a construction project provides general liability insurance and workers compensation for all eligible parties, including the general contractor and all sub-tier subcontractors
Wrap-Ups can be utilized on a single project with a construction value of $5M+ or on multiple projects that are combined into a “Rolling” Program
Proprietary & Confidential

6. Proprietary & Confidential
What is a Wrap-up?
Traditional Insurance Approach
Multiple Insurers
Inadequate Limits
Potential Gaps in Coverage
Potentially Uninsured Subcontractors
Cross Litigation Between Contractors
Indemnity Issues XS GL WC
General Contractor
Subcontractors
Owner
Owner
Wrap-Up Program
Control
Cost Reduction
Competitive Advantage
Higher Coverage Limits
Consistent Coverage Across Contractors
Coordinated Claims
Minimize Cross Litigation/Subrogation
Allows for a Larger Qualified Contractor Pool WC GL XS
General Contractor GL WC XS
Subcontractors
Proprietary & Confidential

7. Proprietary & Confidential
Wrap-Ups vs Traditional Approach
Wrap-Up
TRADITIONAL APPROACH
Cost
Owner/Contractor receives maximum financial benefit
Owner posts collateral and pays premiums
Higher overall costs for Owner
Coverage
Same coverage terms for all parties
Contractor policy coverage terms vary by individual contractor
Limits
Dedicated program limits
Contractors have varying limits of insurance that may be eroded by multiple projects
Claims
Owner controls claims for completed operations period
Broker provides claims advocacy
Cross-litigation between contractors
Individual contractors responsible for their own claims
Potential bad publicity from unresolved claims
Administration / Program Setup
Owner sets contractor insurance requirements and assembles underwriting data
Owner monitors program progress
Broker administers program
Owner sets contractor insurance requirements
Other projects
Owner can include multiple projects in its Wrap-Up program
Other projects cannot be included in the same program unless the same GC is utilized
Cost Avoidance Options
1) Net Bid - Subcontractor Bids Without Insurance Included (Bid Accepted)
Bids Accepted Net of Insurance
Competition Forces Removal of Costs
Savings Estimated
2) Insurance Add Alternate - Insurance Cost Identified and Reviewed (Bid Adjusted)
Insurance Costs Identified in Bid
All Costs are Identified and Negotiated in Bidding Process
Savings Identified Up-front (No Payroll Adjustment)
3) Bid Credit Tracking - Subcontractor Bids With Insurance Included (Bid Adjusted)
Insurance Costs Identified and Tracked Over Project Term
Remove All Costs Contractors Would Pay In Absence Of A Wrap-Up Program
All Insurance Costs Identified and Removed 7
Proprietary & Confidential

8. Proprietary & Confidential
OCIP vs CCIP
OCIP
CCIP
Cost
Owner receives maximum financial benefit
Owner posts collateral and pays premiums
GC receives maximum financial benefit
Contractor posts collateral and pays premiums
Coverage
Same coverage terms
Limits
Dedicated program limits
Limits can be dedicated or shared depending on program structure
Claims
Owner controls claims for completed operations period
Broker provides claims advocacy
General contractor controls claims for completed operations period
Administration / Program Setup
Owner sets contractor insurance requirements and assembles underwriting data
Owner monitors program progress
Broker administers program
GC manages contractor insurance requirements and program administration
Broker administers the program
Other projects
Owner can include multiple projects in its OCIP program through a “rolling” OCIP
Other projects cannot be included in the same program unless the same GC is utilized
Cost Avoidance Options
1) Net Bid - Subcontractor Bids Without Insurance Included (Bid Accepted)
Bids Accepted Net of Insurance
Competition Forces Removal of Costs
Savings Estimated
2) Insurance Add Alternate - Insurance Cost Identified and Reviewed (Bid Adjusted)
Insurance Costs Identified in Bid
All Costs are Identified and Negotiated in Bidding Process
Savings Identified Up-front (No Payroll Adjustment)
3) Bid Credit Tracking - Subcontractor Bids With Insurance Included (Bid Adjusted)
Insurance Costs Identified and Tracked Over Project Term
Remove All Costs Contractors Would Pay In Absence Of A Wrap-Up Program
All Insurance Costs Identified and Removed
Proprietary & Confidential

9. WRAP-UP Coverages CPL PLL OPPI Excess Liability Compensation Workers’
Additional Coverages
Excess Liability
$50 - $200 Million+
Follow Form Excess Liability
Builder’s Risk
Contractors Pollution Liability
Pollution Legal Liability
$25 Million
CPL
PLL
Professional Indemnity
Owners Protective
OPPI
General Liability
$2 M Combined Single Limit
$4 M General Aggregate
$4 M Products/Completed Ops Aggregate
$2 M Personal/ Advertising Injury
Employer’s Liability
Proprietary & Confidential

10. Loss Sensitive Program
WRAP-UP
Financial Model
Loss Sensitive Program
Owner Cost without OCIP
Minimum Savings
Typical Savings (0.5% - 1.2%) of Construction Cost
Cost Avoidance
Owner Max. Cost with OCIP
Maximum Savings
Claims
Minimum Cost
Cost Avoidance Options
1) Net Bid - Subcontractor Bids Without Insurance Included (Bid Accepted)
Bids Accepted Net of Insurance
Competition Forces Removal of Costs
Savings Estimated
2) Insurance Add Alternate - Insurance Cost Identified and Reviewed (Bid Adjusted)
Insurance Costs Identified in Bid
All Costs are Identified and Negotiated in Bidding Process
Savings Identified Up-front (No Payroll Adjustment)
3) Bid Credit Tracking - Subcontractor Bids With Insurance Included (Bid Adjusted)
Insurance Costs Identified and Tracked Over Project Term
Remove All Costs Contractors Would Pay In Absence Of A Wrap-Up Program
All Insurance Costs Identified and Removed
Fixed Expenses (Insurance, Excess, Administration)
10%
20%
30%
40%
50%
60%
70%
80%
100%
90% 0%
Loss Ratio
Contractor
Insurance Costs
Wrap-Up
Costs
Savings = - -
Losses
Proprietary & Confidential

11. Pro Forma $200M Wrap-Up Example PROJECTS Construction Value $
Construction Value $
200,000,000
Payroll (20%)
40,000,000
CONTRACTOR INSURANCE COSTS
PREMIUM
% OF CV
Total
5,500,000
2. 75%
CIP PROGRAM COSTS
MINIMUM
LOSS AGG+CLAIMS EXP
MAXIMUM
% of CV
Total OCIP Program Costs
2,400,000
3,100,000
2.75%
1.20%
1.55%
2.75%
LOSSES
PROGRAM COSTS PLUS LOSSES
INSURANCE CREDITS
PROGRAM SAVINGS
% OF CV
REDUCTION IN INSURANCE COST 0% $ -
2,400,000
5,500,000
3,100,000
1.55%
56%
10%
310,000
2,710,000
2,790,000
1.40%
51%
20%
620,000
3,020,000
2,480,000
1.24%
45%
30%
930,000
3,330,000
2,170,000
1.09%
39%
40%
1,240,000
3,640,000
1,860,000
0.93%
34%
50%
1,550,000
3,950,000
0.78%
28%
60%
4,260,000
0.62%
23%
70%
4,570,000
0.47%
17%
80%
4,880,000
0.31%
11%
90%
5,190,000
0.16% 6%
100%
0.00%

12. WRAP-UPS Net Bid Insurance Add Alternate Bid Credit Tracking
Cost Savings Options
Net Bid
Insurance
Add Alternate
Bid Credit
Tracking
Subcontractor Bids Without Insurance
(Bid Accepted)
Insurance Cost Identified & Reviewed
(Bid Adjusted)
Subcontractor Bids With Insurance Included
(Bid Adjusted)
Cost Avoidance Options
1) Net Bid - Subcontractor Bids Without Insurance Included (Bid Accepted)
Bids Accepted Net of Insurance
Competition Forces Removal of Costs
Savings Estimated
2) Insurance Add Alternate - Insurance Cost Identified and Reviewed (Bid Adjusted)
Insurance Costs Identified in Bid
All Costs are Identified and Negotiated in Bidding Process
Savings Identified Up-front (No Payroll Adjustment)
3) Bid Credit Tracking - Subcontractor Bids With Insurance Included (Bid Adjusted)
Insurance Costs Identified and Tracked Over Project Term
Remove All Costs Contractors Would Pay In Absence Of A Wrap-Up Program
All Insurance Costs Identified and Removed
Savings Estimated
Savings Identified Up-Front (Not adjusted by project end)
All Insurance Costs Identified and Removed
Proprietary & Confidential

13. Proprietary & Confidential
WRAP-UPS
Realizing Financial Benefits
Ensure proper bidding
Contract language
Education
Large Deductibles
Closeout
Proprietary & Confidential

14. Proprietary & Confidential
WRAP-UPS
Administration
Establishing Program Upfront is Key to Success
Education
Use WrapX to Manage the Program
Ensure Adherence to National Standards/ Quality Control
Online Portal to Receive & Deliver Information
Allows Alliant to Focus on Customer Service
Alliant WrapX: Administration
Web-based system
Highly Flexible
Powerful search features
Online Contractor Portal for all data entry
Online Owner Portal with full access to program
Automated Delinquencies and Reports
Abilities:
Distribution of all wrap documentation from system
Generate reports
View all subcontractors and track their enrollments
Administration:
Highly Automated, Allowing our Team to Focus on Customer Service and Value-added Activities
Capable of Efficiently Handling Thousands of Contractors
Built-in Controls
National Service Standards
Dedicated Service Phone Line for Continuous Team
Demonstration of Savings
Client Meetings 14
Proprietary & Confidential

15. BUILDER’S RISK
First party coverage for owner and contractors during the course of construction Provides all risk coverage, including the perils of flood, earthquake and coastal windstorm. Includes fixed and mobile equipment Delay in start-up Limits up to $500+ million 15

16. PROFESSIONAL LIABILITY
Owners Protective Professional Liability
Alternative to costly project professional liability coverage
Excess coverage sits above designers’ policies
Coverage is triggered when designers’ policies are exhausted
$25,000,000+ in limits
Three years of coverage plus extended reporting period
Professional Liability. Specialized Expertise.
Complete understanding of large project complexities
Policy language with optimal protection
Tailored solutions and sound advice

17. ENVIRONMENTAL COVERAGE
Contractors Pollution Liability
Provides coverage for pollution conditions caused by covered construction operations, including subcontractors Applies to sudden and gradual pollution conditions Covers third party claims for bodily injury / property damage and clean up from on-site or off-site pollution conditions Limits available up to $200 Million 17

18. LOSS CONTROL Development of safety standards and training programs
OSHA 10 and 30 monthly training seminars
Active return to work programs
Development of safety standards and training programs
OSHA 10 and 30 monthly training seminars
Active return to work programs

19. Proprietary & Confidential
CLAIMS
Establishment of Claims Procedures and Special Handling Guidelines
Claim Reviews
Coverage Questions Reviewed and Resolved
Coordination in Production of Claims Kits and Insurance Manuals
Facilitate Claims Process with Third Party Administration
Litigation Management
Definitive Close out Execution Plan for Open Claims and Reserves
Claims
These are just a few of the services that we provide when we take on a claim for you. We establish a benchmark through a thorough review of loss runs to establish the proper reserves and to determine if the current action plan is appropriate to bring about a resolution of the claim. From there we answer your and the adjustor’s questions and help facilitate the claims process. The rest is fairly standard and should be understood as necessary parts of any claim process. The right claims team working on your behalf will positively impact a client’s bottom line.
Proprietary & Confidential

20. THE SPECIALTY BROKER Agri-Business Construction Employee Benefits
Providing Service, Expertise and Risk Solutions to our Clients
Agri-Business
Construction
Employee Benefits
Energy and Marine
Environmental
Healthcare
Public Entity
Real Estate
Tribal Nations
THE Specialty Broker
Alliant is the premier specialty broker and provides unparalleled service, expertise, and risk solutions to our clients.
Construction
Employee Benefits
Energy and Marine
Environmental
Healthcare
Program Management
Public Entity
Real Estate
Tribal Nations
Public EntityTribal Nations

21. SPECIALTY INSURANCE LEADER.
Alliant. The Premier Specialty Broker
2,100+ Employees
2014 Premium $7.8 billion
Revenue $621 million
3rd Largest Privately Held Broker
Financial Partner Stone Point Capital
Alliant Construction Services Group
380 Construction Specialists
Over 2,000+ Clients
2014 Premium Volume $850M
Specialty Insurance Leader
2012 Premium $6.8 billion
Revenue $506 million
Financial Partner KKR (Kohlberg Kravis Roberts & Co. L.P.)
KKR currently manages private equity assets of more than $66.3 billion
Alliant Company Statistics
Founded in 1925
Headquartered in Newport Beach, California
Largest Organic Growth in the Industry
Recruitment of Top Senior Level Production Talent via Selective Acquisition Strategy
National footprint
Premier Specialty Broker
Public Entity
Construction and Homebuilding
Hospitality
Energy
Healthcare
Tribal Nations
Manufacturing

22. OUR NATIONAL PLATFORM
Office locations- Not for print 22

23. $850M+ 2,000+ Clients 380+ GROUP METRICS Premium Volume Construction
Colleagues
National Platform
2,000+ Clients
Contractors, Developers, Engineers & Homebuilders
$850M+
Premium Volume

24. Alliant Exclusive Solutions and Programs
Technical Services: Claims Management Summary
1) Column 1 (L-R)
Claim Kits
Timely Reporting & Investigation
Crisis Management
Analyze expense reserves
Ensure carrier compliance with best practices
2) Column 2
Vocational Rehab
Mitigation of Losses at Every Level
Return to Work Issues
Explanation of current case laws and rules
Medical Case Management
3) Column 3
Eliminating Fraud
Customized Reporting
Diligent Claims Monitoring
Assistance at Mediation & Arbitration
Establish Claims Procedures

25. THE ALLIANT APIP SOLUTION
Alliant’s Public Entity Exclusive Property Program (APIP)
Largest single property placement in the world with over $350 billion in Total Insurable Values (TIV)
Over 9,300 public entity members across 44 states
Enhanced coverages
Terrorism
Boiler & machinery
Inland marine
1st and 3rd party cyber liability
1st and 3rd party pollution liability
Appraisals every five years on buildings valued greater than $5 million at no cost
PML Studies
THE Specialty Broker
Alliant is the premier specialty broker and provides unparalleled service, expertise, and risk solutions to our clients.
Construction
Employee Benefits
Energy and Marine
Environmental
Healthcare
Program Management
Public Entity
Real Estate
Tribal Nations
Public EntityTribal Nations

26. THE ALLIANT MROCIP SOLUTION
Alliant’s Public Entity Exclusive Group Wrap-up Program
OCIPs traditionally available only for projects exceeding $100M
The Answer: MROCIP
Innovative “pooled” approach extends the benefits of OCIPs to Public Entity’s with:
THE Specialty Broker
Alliant is the premier specialty broker and provides unparalleled service, expertise, and risk solutions to our clients.
Construction
Employee Benefits
Energy and Marine
Environmental
Healthcare
Program Management
Public Entity
Real Estate
Tribal Nations
Public EntityTribal Nations
Single projects as
low as $10M
Individual or aggregated
projects totaling $100M+
$10M
$100M

27. The New Option.
Visibly Different.
Do Not Print - Animation Slide

28. Additional Questions & Next Steps
Technical Services: Claims Management Summary
1) Column 1 (L-R)
Claim Kits
Timely Reporting & Investigation
Crisis Management
Analyze expense reserves
Ensure carrier compliance with best practices
2) Column 2
Vocational Rehab
Mitigation of Losses at Every Level
Return to Work Issues
Explanation of current case laws and rules
Medical Case Management
3) Column 3
Eliminating Fraud
Customized Reporting
Diligent Claims Monitoring
Assistance at Mediation & Arbitration
Establish Claims Procedures