Manufacturer Saves Over $1.5 Million on Construction Insurance

Challenge

A manufacturer was constructing a warehouse in California. Its general contractor (GC) wanted to control the purchase of builders risk insurance with full earthquake limits for the project.

Shocked when it received a $2 million quote for the required coverage, the manufacturer reached out to Hylant for a better solution. They became hopeful when they learned that Hylant has a team dedicated to construction risk management.

Solution

Hylant’s construction risk experts reviewed the GC’s project requirements and insurance quote. They noticed not only the price tag but also that the manufacturer erroneously was not listed as the first named insured on the proposed policy. This meant that the manufacturer would not receive money for soft costs (e.g., loan interest, permit fees, property taxes) if the project were delayed due to a covered loss.

The GC said it had taken seven months to secure its quote for builders risk and earth movement coverage. Hylant, tapping into its substantial carrier network, secured a quote in seven weeks for $466,400, including comprehensive builders risk and supplementary difference in conditions (DIC) insurance to cover the effects of natural disasters, such as earthquakes.

Getting a second opinion saved this manufacturer $1.5 million.

Working with an insurance broker that has specialized knowledge, a broad carrier network, and your best interests in mind means getting the right coverage at a fair price when you need it.