The pricing is based on the limit of insurance selected for the job in question, and the total estimated cost to the project owner of the job. The rate, applied to increments of job costs, is subject to the following minimum premiums per job based on the limit of insurance selected.

The following minimum premiums apply per job:

Limits selected                                                  Minimum per job premium

\$100,000 per Occurrence and \$250,000 Aggregate                    \$55 per project

\$250,000 per occurrence and \$500,000 Aggregate                     \$75 per project

\$500,000 per occurrence and \$1,000,000 Aggregate                  \$107 per project

\$1,000,000 per occurrence and \$2,000,000 Aggregate               \$197 per pro

The rating increments are:

Job Cost Increment                   Rate

First \$100,000 @                       \$1/\$1,000 of project cost

Next \$400,000 @                       \$.75/\$1,000 of project cost

Next \$500,000 @                       \$.60/\$1,000 of project cost

Next \$500,000 @                       \$.55/\$1,000 of project cost

If the job is over \$1,500,000 we will require additional underwriting information

Completed jobs are subject to audit upon completion for the final cost.

Examples:

1. John is renovating his townhouse. His contractor is participating in the Shield Indemnity APPC insurance program.  The job is estimated at \$750,000 at time of permitting.  Due to the size of the job they have selected \$1,000,000 limit per occurrence and \$2,000,000 aggregate limit of insurance for the job.

First \$100,000 rating:                \$100 X \$1.00 = \$100 premium

Next \$400,000:                         \$400 X .75 =     \$300 premium

Remaining                                \$250 X .60 =     \$150

Minimum Premium for \$1,000,000/\$2,000,000 limits = \$197

\$550 > \$197 therefore job premium is \$550

1. Michelle is renovating a 2 bedroom row house in Adams Morgan and adding an extra bedroom. The construction will impact the party walls and chimney. The total contract price is \$150,000.  Due to the size of the job Michelle is interested in pricing for all limits available.

First \$100,000 rating:  \$100 X \$1.00 =    \$100

Next \$50,000:               \$50 X .75 =        \$38

Total                                                    \$138

Michelle can buy limits as high at \$500,000 each occurrence and \$1,000,000 aggregate for \$138.  However, if she opts for the \$1,000,000 per occurrence and \$2,000,000 Aggregate the premium will be \$197.