Complete Reference Guide. Prime Builder Custom built protection for your construction project A /14

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1 Complete Reference Guide Prime Builder Custom built protection for your construction project A /14

2 Prime protection Prime Builder is the innovative insurance solution that lets you combine coverages traditionally sold separately into one convenient package for added value, protection and peace of mind. Whether your project is an office building, condominium, school, hospital, road or bridge, you can feel secure knowing Aviva * understands the unique risks of the construction industry, and we have the financial strength and stability to be there when you need us most. The Prime Builder advantage Prime Builder caters to the unique needs and risks of the construction industry by offering: All-in-one protection Prime Builder lets you create a custom commercial package that eliminates the need for multiple insurance policies and reduces the risk of coverage gaps Competitive limits Prime Builder is the ideal choice for large and complex construction projects, with coverage limits up to: $100 million for Builders Risk $25 million ** for Wrap-Up Liability How to qualify Ease of doing business You benefit from having one insurance policy should you ever have a claim or need to make changes to your insurance policy Custom coverage In addition to Prime Builder s broad coverage, you can customize and enhance your package with coverage that s right for your specific project Prime Builder is available for projects involving new construction, reconstruction, installation and renovation, provided the following criteria are met: The project premises are located in Canada The builder, project owner, developer and major contractors of the project must: have acceptable claims experience use pre-qualified sub-trades have prior experience with similar projects submit a completed Prime Builder application have appropriate loss control practices in place at the project site be financially sound

3 Build with confidence Prime Builder gives you the flexibility to select the specific coverage that s right for your construction project. From a complete package with optional enhancements to only select coverages, you can feel secure knowing you have an insurance package that s built around your specific needs. Prime Builder Guide Builders Risk coverage is designed to protect you against damage that may occur during the course of construction. Working with your broker, you can purchase Builders Risk as a stand-alone policy, or you can combine Builders Risk with Wrap-Up Liability coverage to create a custom insurance package. Project site Off-site Additional coverage As long as the value of the following property is included in the limits of insurance, coverage is provided for: All property that will be part of the completed building or structure Expendable materials and supplies necessary to complete the project Landscaping, growing trees, plants, shrubs or flowers that form part of the completed project Temporary buildings, scaffolding, falsework, forms, hoardings, excavation, site preparation and similar work Temporary infrastructures, utilities, dewatering systems, protective equipment and site offices, including contents within the site offices The property insured at the project site is also covered while off-site, anywhere within Canada and the continental United States while: In transit At any other location except at a location while being manufactured or undergoing any process Builders Risk also includes coverage for: Automatic Fire Suppression System Recharge Expense $25,000 By-Laws $100,000 Clean Up Expenses for Land and Water Pollution (aggregate limit) $25,000 Contract Penalties $25,000 Escalation of Contract Value 10% of limit of project site Extra & Expediting Expenses $100,000 Fire Fighting Expenses $25,000 Fungi $25,000 Permission for repair $100,000 Professional Fees $100,000 Debris Removal extra limit, up to $50,000 Reward $10,000 Valuable Papers and Records $100,000 Transit $100,000 Other locations $100,000 Restricted access by civil authority 60 days Higher limit will be considered upon request.

4 Builders Risk Special Features Prime Builder offers features over and above standard forms. As a leading provider of construction insurance solutions, we have the knowledge and experience to understand the features and coverage you need to feel protected. Employee Dishonesty Faulty Material/ Workmanship/Design Replacement Cost Basis of Settlement Bills of Lading Breach of Condition Cessation of Errors and Omissions Liberalization Subrogation Sue and Labour Occurrence When Loss is Payable There is no specific employee dishonesty exclusion, so there is no issue when an employee of one insured steals covered property of another insured from the project site. The standard industry exclusion for this exposure has been modified to provide enhanced coverage, often referred to as DE4 coverage. Basis of settlement will be Functional Replacement Cost including contractors and subcontractors overhead and profit. We grant permission for you to accept bills of lading, shipping receipts, contracts or carriage containing limitations about the value of your insured property in transit. A breach of a condition of insurance will not prevent coverage from taking effect if: Aviva cannot establish that the loss was caused or contributed by the breach The breach of condition occurred in any portion of the project site over which you have no control Also any act or breach of condition by one of the parties insured will not prevent recovery by any other insured party who is innocent of such act or breach. Aviva provides a broader coverage over and above CCDC requirements by not limiting the size or type of retail operations allowed. Your policy will still provide coverage in the event of an unintentional error in describing or reporting your project s legal address or title. Aviva provides broader coverage over and above CCDC s insurance requirements of named perils coverage. Aviva provides you with an automatic waiver of subrogation in relation to a broader scope of entities and the people and businesses connected to those entities. We share with you the reasonable costs to recover lost property. If a loss or a series of losses arise from the same event even if it s over a period of time the event will be considered one occurrence. Loss is payable to you within 30 days after you file the proof of loss with Aviva.

5 Optional Enhancements Complete your Builders Risk protection with optional coverage enhancements. Equipment Breakdown Insurance Close potential gaps in coverage with equipment breakdown insurance. This coverage protects you from: Equipment breakdown when building services are activated before the project is complete and given over to the owner Breakdown of data processing equipment and other electronic equipment at the project site, including contents in the site office trailer Testing and Commissioning Pays for damage to insured property due to: Cold testing the start-up or checking of any component part under dry run conditions Hot testing the start up or checking of any component part under load or operational conditions Commissioning the operation of any component part under production conditions for the purpose of attaining specification requirements or training operational personnel area testing may be carried out for the entire project or for individual components at different times Testing period four weeks of testing is provided, whether or not continuous or intermittent Business Income Pays for financial loss of the builder or owner if the project is not completed on time, due to an insured loss. Available coverages are: Soft Costs Extended Business Income caused by delayed start-up Extended Rental Income caused by delayed start-up Faulty Material Replacement Labour Expense Additional coverage: Accountants fees $5,000 ** Reimburses you for the reasonable charges from professional accountants for producing particulars or details or other proofs, information or evidences required by us for the purpose of investigating or verifying a claim Off-Premises Utilities 25 kilometres /$25,000 ** Pays the business income lost if the project isn t completed on time due to an insured loss of the utility, property, supplies, communications, electricity, water, gas or steam to the project site Interruption By Civil Authority 60 days Pays the business income lost if the project isn t completed on schedule because access to the project site was denied by order of civil authority Mortgage Rate Guarantee Pays the reasonable increase in mortgage rates that occur because of a renegotiated mortgage rate following a loss Existing Fixed Structures Structure(s) or building(s) that existed at the project site prior to the start of building project, and which are to form part of the completed project, can be insured under Aviva s Builders Risk coverage.

6 Wrap-Up Liability Wrap-Up Liability coverage provides comprehensive protection for project owners, project managers, architectural and engineering consultants and all contractors and subcontractors working on your project. Combine Wrap-Up Liability with Builders Risk coverage for broad protection that provides complete peace of mind. Bodily/Mental Injury and Property Damage Products and Completed Operations Personal and Advertising Injury Tenant s Property Damage Liability Voluntary Medical Payments Provides liability coverage if a third party suffers a bodily injury, mental injury or property damage due to your negligence. Covers liability to third parties arising from the sale or installation of products by you. Applies to all insured parties, not just those named on the policy and covers: Liability arising out of occurrences such as libel, slander, false arrest, malicious prosecution, and wrongful entry Advertising injury that arises from advertisements regarding the project Covers legal liability for damage to non-owned premises of all insured parties, and covers assumption of liability under insured contract and intentional justified property damage. Covers payment of reasonable medical, surgical and other similar expenses resulting from bodily and mental injury. Employee medical expenses are covered, unless covered by Worker s Compensation. Optional Enhancements Complete your Wrap-Up Liability protection with optional coverage enhancements. Non-Owned Automobile Existing Structures Sudden and Accidental Pollution 120 hours Covers loss due to bodily injury or property damage arising out of the use or operation of any automobile not owned by insured parties. Standard limit of $1,000,000 ** including contractual liability and all perils damage to hired automobiles for $100,000. ** Covers third party damage to a building or structure that is on the job site before construction begins. Covers third party bodily injury, mental injury and property damage from an unexpected and unintentional spill, discharge, emission, dispersal, seepage, leakage, migration, release or escape of pollutants due to your negligence subject to a 120 hour reporting requirement.

7 Wrap-Up Special Features Prime Builder Wrap-Up Liability offers special features that can only come from Aviva. Provides coverage automatically for any other person or organization required to be covered by an insured contract Subrogation is explicitly waived against all insured parties territory is worldwide, provided action brought in Canada or US General Aggregate is optional No assignment of Bodily Injury/Property Damage to policy periods Includes coverage for injury or damage occurring during correction of deficiencies within 365 days of project completion Optional extended Completed Operations period No blasting, pile driving, removal or weakening of support exclusion Contractual liability extended to all insured parties, not just those named on the policy Products and Completed Operations extend to all insured parties Employers Liability included for all Canadian resident employees and covers all insured parties Airports maintenance work in unrestricted areas is covered Automobile loading and unloading, maintenance and use of attached machinery included Covers intentional justified property damage and intentional justified bodily injury Broad Form completed operations Incidental medical malpractice for each insured party

8 Protection beyond your policy As an Aviva customer, you have access to our team of risk professionals who can provide risk control surveys. This includes recommendations related to best practices in risk management and loss prevention for property and equipment. In addition, we provide statutory certification and inspection of boilers and pressure vessels. You also benefit from Canada s widest network of incident management professionals and quality service partners. In the unfortunate event of a claim, we ll help you get back on track by resolving it efficiently and hassle-free. Ask your broker today about Prime protection that s comprehensive, convenient and customized to meet the needs of your construction project. Even more coverage Aviva offers a full suite of insurance solutions to protect all components of your business. Ask your broker today about insurance and surety solutions including: Contract surety bonds Aviva provides a complete range of surety bonds available for every class of business. Together with your broker, we can create a customized surety solution to help you build your competitive advantage in the construction market. Developer surety and home warranty products Secure your developer contracts with confidence knowing you re protected with home warranty and deposit insurance. At Aviva, our developer surety specialists take the time to understand the scope of your project and use their knowledge and experience to create customized protection that helps manage your risks. Commercial automobile insurance The right insurance coverage can help protect you and your business when the unexpected occurs. Whether you use vehicles for business or personal use, manage a large fleet or own a garage operation, Aviva has an insurance solution that s right for you. Property and casualty insurance Aviva offers customized protection for your property assets, money and liability whether you operate a small, mid-size or complex business. Aviva Canada Inc. is one of the leading property and casualty insurance groups in Canada, providing home, automobile, leisure and lifestyle and business insurance. We have more than 3,300 employees partnering with 1,700 independent broker partners to meet the needs of more than three million customers nationwide. Aviva maintains a consistent A Excellent financial strength rating from A.M. Best and an A rating from Standard & Poor s. *Aviva and the Aviva logo are trademarks used under license by the licensor. All insurance products are underwritten by Aviva Insurance Company of Canada. Information provided in this pamphlet is only an outline of the coverages available. Actual coverage may vary by province. For exact terms, conditions, exclusions, definitions, limitations and extensions, please speak to your insurance broker and refer to your final policy wording. **Higher limit will be considered upon request. Additional time will be considered upon request. Increased distance will be considered upon request.