a specific sublimit for wood frame construction. Excluded perils include earthquake, land

movement, flood, terrorism, and delay in completion unless specifically procured as an option.

A sublimit is an amount less than the total limits for the project and the maximum amount that

the insurance carrier will pay in the event of a covered loss or damage resulting from a specific

peril, construction type or type of property.

An Application must be completed by the University’s Project Manager or designee and

submitted to Willis Towers Watson within ten (10) days prior to the commencement of work on

the project site.

Applications must be submitted in a timely manner which allows a reasonable amount of time to

be reviewed, approved, and a Certificate of Insurance issued to the University. Additional time

liability-insurance-resources.html

Willis Towers Watson will email confirmation of Builder’s Risk insurance with a Certificate of

Insurance to the campus or medical center Project Manager or designee. The Project Manager

or designee is responsible for ensuring the Certificate of Insurance is provided to the Contractor.

When extension(s) for Builder’s Risk insurance are requested and approved, Willis Towers

wood frame sublimit. It is best to allow at least sixty (60) days.

Rates are applied according to type of construction and type of project. For projects with more

than one construction type, the rate for the predominant construction type shall apply if the

than 80%, you must provide a breakdown of the construction cost by type of construction on the

Application.

Contact Willis Towers Watson if you have questions on current rates or which rates apply.

The construction cost reported for Builder’s Risk insurance should be the Contract Sum for the

construction phase, including but not limited to all labor, fees, general conditions, architect,

engineering, and professional fees. You should include costs for materials, equipment,

machinery, and supplies that will be used in the construction and will become part of the

completed project. The cost of all equipment to be installed, whether or not procured outside the

construction contract, should be included. The project team should maintain the records to

support the construction costs reported.

Contact Willis Towers Watson if any uncertainty about costs to include.

is even if the contract with the general contractor does not include the installation and costs of

certain pieces of equipment. The University purchased equipment being installed separately is

at risk for loss or damage during the course of construction, therefore, should be insured under

An exception would be if the University purchases the equipment which will be installed after

final project completion.

property that is being demolished or removed would not be replaced or repaired if it were to

Any significant increase in construction cost (5% increase or more) and/or significant change in

scope of work must be reported to Willis Towers Watson.

If a project goes over the policy limit during the course of construction (regardless of what the

percentage increase is), Willis Towers Watson must be notified immediately so the carrier can

project’s recharge account number provided on the Builder’s Risk application.

The Builder’s Risk application at https://ehs.ucop.edu/cli/welcome.info will automatically

calculate the Builder’s Risk deposit premium based on the projects details entered on the

application.

Insurance carriers require a minimum premium for each project. Contact Office of the President

Complete the information and the estimated premium for Builder’s Risk insurance will be

automatically calculated.

The premium for Builder’s Risk insurance is based on construction cost and number of

construction days.

Projects $1 million or greater in estimated construction cost at the time of enrollment will be

subject to additional or return premium for changes in construction cost or project duration. This

Coverage begins on the Notice to Proceed date for the construction phase. Builder’s Risk

insurance must be requested prior to work starting on the project site.

There may be some exceptions, for example, Builder’s Risk insurance is not needed during a

period where only demolition work is occurring.

If you have any questions about when to start Builder’s Risk insurance on a project, contact

Willis Towers Watson.

Coverage should be continued and not terminated until the date of Final Completion recited in a

Towers Watson.

There may be extenuating circumstances where the filing of NOC is being delayed with only

paperwork remaining. Builder’s Risk insurance may be terminated earlier when 100% of the

work is completed AND all contractors/subcontractors have left the project site with no further

work anticipated at the project site AND paperwork is the only activity remaining to be

completed before filing NOC. Contact Willis Towers Watson for a “Verification to Terminate

Projects must be closely monitored as they near their estimated project completion date as

reflected on the latest confirmation of coverage. If a project is going to continue beyond that

date, the Project Manager or designee must complete and submit a Builder’s Risk Extension

extension of coverage. The completed Extension form must be submitted to Willis Towers

Watson and is available on-line at https://ehs.ucop.edu/cli/welcome.info

In addition, Willis Towers Watson provides a monthly listing of active Builder’s Risk projects to

The Contractor is responsible for the “per occurrence” deductible and this is stipulated in the

University contract documents.

The University’s contract documents stipulate the University will provide this coverage.

Whether the risk is insured by the University or through contractor-provided insurance, the cost

cost plus fees and profit margin (which may also include independent agent and broker

commissions) is embedded in the contract cost. There are benefits to the University securing