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Contractors SBU

Getting on the right road

Avoiding the dangers along the way

Reaching your destination

Closing the deal

CTR SBU will get you there!

Strategy

Coverages

Value-Added services

GPS to CTR SBU Success

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Focused Marketing for 2018

What does that mean?

“Route options to get to your

destination – fastest, avoid

congested roads, no toll

roads”

Target Classes

Sure!

Beyond those Classes

Yes!

Key Factor

Pricing to exposure presented

Contractors SBU

EXPRESS LANE

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Additional Insured Coverage Options

ElitePac® General Liability Extension

Endorsement (CG 7300)

Blanket for ongoing operations applicable

to all parties required by the contract on

primary and non-contributory basis

CG 7921: Additional Insured – Completed

Operations

Blanket for completed operations

applicable to all parties required by the

contract on primary and non-contributory

basis with no time limitation

CG 7943 and CG 7944

When the contract calls for “arising out of

wording”

Can be project specific or contractor

specific

Contractor-Focused Coverages

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Additional Insured Coverage Options

Contracting, Installation, Service & Repair

GL Extended ElitePac® Endorsement (CG

7988)

Provides blanket additional insured on the

basis of the contract requirement (“in

whole or in part” or “arising out of”)

Ongoing and completed operations

Applies to all parties required by the

contract

No time limitation on “completed

operations” coverage

Cost: 3% of GL premium subject to $750

min. and $2,500 max.

Contractor-Focused Coverages

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Just to name a few more…

Worksite Damages

Limited PD: “CCC”*

$2M/$4M GL limit

Electronic Data Liability (EDL)

Per Project Aggregate (automatic on every

policy)

Contractual Liability – Railroads*

OCIP/CCIP (Wrap Up) – completed operations

and primary and excess gap*

OCPs

Contractors E&O

3rd Party Notice: COI issuance

(IL 7990 and WC 990611)

Umbrella – Waiver of Subro included; Primary

& Non-contributory – available

*Included in CISR endorsement

Contractor-Focused Coverages

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Value Added Services

Selective’s Standardized Contracts

Safety Management Services

Claim Services

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Types of Contracts Available

Subcontractor & Master Subcontractor

Increase the value of your services

at no cost to your clients

Master Subcontractor Short Form

Purchase Order Agreement

Sample Work Order

for use with master contracts

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Discount on online OSHA 10 hour & 30

hour Construction Safety Training

Contractor’s Risk Transfer Review

Industrial hygiene testing (air, noise, & light)

Fleet safety

Accident investigations

Assistance in developing a loss control

program

Safety committee training & participation

Free safety video lending program

Safety Management Services

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Roadside Assistance for Claims Services

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Complimentary Marketing Materials

Multi-function tool to help you reach

the right audiences with the right

materials at the right time

Brochures, flyers and direct

marketing materials available at no cost

Co-branding available

on some items

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Straight Through Processing

Plans to improve that rate are on the

drawing board for 2018!

CPP – Contractors “straight through”

rate was just under 50%

Number of edits reduced, eliminating

referral to an underwriter

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PaySync®

A cash flow-friendly method for paying

eligible Selective workers compensation

(WC) and/or commercial package policy

(CPP) premiums

Advantages include:

No down payments or installment

fees

Pay your premium over a full year (for

our CPP program, choose between

12, 24, 26, or 52 payments)

PaySync® is simply another pay plan

option, so no special underwriting

guidelines apply

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BUMP AHEADAvoiding Risks

Contractual requirements are no

problem!

Our coverages address all the

commonly requested coverage:

Broad Additional Insured

Forms

Per project aggregate

Primary & Non-Contributory

Waiver of Subrogation

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Avoiding Risks

Exclusionary Endorsements – commonly

included by other carriers

Property Damage Deductible

CG 0300

Professional Liability Exclusions

CG 2243, CG 2279 or CG 2280

Property Damage Exclusion for work by

subcontractors

CG 2294 or CG 2295

Contractual Liability Limitations

CG 2139 and CG 2426

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Our 2017 Segment Leaders

Electrical Work

Grading & Excavation

GC – Residential

Lawn/Landscape

Concrete Work

GC – Other

Carpentry

Building Services

Special Trade NEC

$20.8M

$71.6M

$65.4M

$48.5M

$57.2M

$28.5M

$70.6M

$57.0M

$40.5M

Painting & Paperhanging

$20.5M

2016 DPW (Million)

Driving Success through Contractors SBU

Pre-Fabricated Building Erection Contractor – $57,300 – CPP

Segment: Pre-Engineered metal building

Operations: Erection of metal “Butler” type structures with 80% in sub-costs

Conducted pre-quote survey: SMS spent considerable time with the prospect discussing the

importance of strong contract wording and provided a copy of our two master contracts

Agency feedback: Insured was appreciative of the time spent discussing their contract and the

reasons to make some changes. Decided to move their account to Selective and start using one of

our contracts immediately

Key to winning the account: Being able to provide a service not offered by other carriers was the

key in converting this risk from prospect to insured

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Driving Success through Contractors SBU

Electrical Contractor – CPP – All Lines Including WC and Umbrella, $160,000

Segment: Electrical wiring within building

Operations: Primarily commercial with some residential interior electrical wiring

Account left us for price 2 years ago to go to one our competitors. Forms were deficient and the

premium savings were quickly eaten up in charges for multiple Additional Insured endorsements

Agency Feedback: Won the account back, at higher premium than the incumbent, because of our

CISR endorsement, ability to offer a $2/4M limit and offering PaySync®

Key to winning account back: Broad, construction focused coverages and billing options

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Certificate Tracking Solution – Pilot

Looking to bring Value-added solutions to insureds to help them run their business more efficiently

and effectively

Opportunity to connect insureds who subcontract work with a vendor that will:

Track COIs for the insured

Analyze COIs to make sure they conform to the insured’s insurance requirements

Organize COIs on a “dashboard” portal that is easily accessible to the insured

Vendor is RMC Solutions – www.RMC123.com

Starting Pilot phase now – would like 12 insureds interested in being a part of the pilot

Selective pays 100% of the fees for one year!

Any agents interested in having an insured involved in pilot contact Paul Anderson –

PaulR.Anderson@selective.com or (973) 948-1528

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Driving Success through Contractors SBU

General Contractor – Commercial – CPP – GL, Auto and IM – $110,756

Segment: General Contractor

Operations: Specializes in office renovations – furniture/fixtures set up for offices and light carpentry

builds outs with no structural work.

Challenges: 30% of their work was conducted in a major metro area. Significant sub exposure

(83%). Current contract had minor deficiencies but insured committed to using our contract going

forward and submitted executed copies within a few weeks of binding coverage.

Agency Feedback: Our commitment to overcome the urban work convinced insured to make the

move.

Key to winning the account: Plain old fashion underwriting! Don’t run from risk – understand and

price for it!21

Selective is your fast lane for contracting success in 2018

Focused marketing

Broad coverage

Free standardized

subcontractor agreements

Quality services

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Use and distribution limited solely to authorized personnel and appointed agents.

Do not duplicate or distribute.

©2018 Selective Insurance Group, Inc., Branchville, NJ (“Selective”). Products provided by Selective’s insurer subsidiaries; insurers and products available vary by

jurisdiction. These descriptions are summaries and not offers to sell insurance; the actual policies show complete coverage, exclusions and limitations details. Policy

issuance is subject to underwriting approval.