Procore Technologies Inc., a leading global provider of construction management software, announced a new partnership with Shepherd, a startup insurtech based in San Francisco, to begin offering an integrated insurance product that provides improved insurance terms and lower premiums to qualified Procore customers.
"Procore’s platform, integrations, data and analytics enable our customers to run safer and more profitable businesses.” Said Tooey Courtemanche, Founder, President and CEO of Procore. “However, contractors are not typically rewarded by insurance markets for making these risk-reducing investments. And, insurance is one of the biggest costs that our customers are trying to manage. Our partnership with Shepherd offers our customers the insurance coverage they deserve."
Shepherd’s mission is to create a safe and sustainable construction industry by providing innovative insurance products to general and specialty contractors which incentivizes the use of technology on job sites. As a Procore portfolio company and App Marketplace partner, Shepherd is offering qualified Procore customers underwriting credits in order to lower premiums, endorsing the idea that technology reduces risk in construction. This program is called Casualty Pro, and starts with Excess Liability, Shepherd’s current product offering. The company plans to expand this program alongside bringing new casualty products to market.
A sample analysis of Procore contractors found that the experience modification rates (EMR), which are a standardized metric used in determining worker’s compensation premiums, for the top quartile of general contractors on the platform outperformed those of their peers by 21 percent on average. The same study also saw positive correlation and an average EMR decrease from the time when a contractor adopted Procore to their 2022 results.
Similarly, Procore’s recent 2022 Customer Return On Investment (ROI) report, users reported significant benefits in the following areas: safety, quality, efficiency and risk.
- Safer Jobsites: 79 percent of customer respondents that use Quality and Safety tools agree Procore has improved their company’s safety programs.
- Improved Efficiency: Customer respondents reported saving an average of 15 days on the overall schedule on a typical project.
- 80 percent of customer respondents agree they have more protection in a litigation scenario with the data they are tracking/capturing with Procore.
"At Shepherd we're determined to align the contractor - insurance carrier relationship in new ways. We believe strongly in the power of Procore's platform and the positive impact Procore tools have on jobsite safety, risk management, and loss control. Innovative insurance products, such as Casualty Pro, allow us to underwrite using more inputs and provide opportunities to credit contractors who've adopted the best construction technologies." - Justin Levine, co-founder, chief executive officer of Shepherd Underwriting.
"We're introducing Procore usage as a new category in Shepherd's underwriting process because we believe in the positive benefits of the platform on day-to-day risk management and loss control on job sites. We hope this partnership benefits clients who have already taken the important step of implementing technology solutions across their project portfolios," said Steve Buonpane, co-founder, chief insurance officer at Shepherd.
