Description
Know the pros and cons of subcontractor default insurance so you are prepared for your next project.
Are you involved in a complex and largescale construction project, whether from the owner or general contractors perspective? Are you having an issue obtaining qualified, bonded trade partners? If so, has the topic of subcontractor default insurance (SDI) been discussed? SDI is an important topic since SDI would generally serve as an alternative to requiring subcontractors to obtain performance bonds. SDI is a firstparty insurance policy but operates differently than the firstparty insurance policies you typically think of, such as a property insurancebuilders risk. SDI is not a performance bond and operates differently than a performance bond. SDI is designed to cover more catastrophictype defaults and can be a useful insurance policy on wellmanaged projects with a focus on your prequalification requirements. This topic will explain the differences between a performance bond and SDI, discuss how a SDI policy operates, and touch upon the positives and negatives of SDI. In a volatile market such as the current market, its imperative to understand your options when it comes to risk assessment, including not only flowing down risk, but ensuring you have the right coverage for that risk.
Date: 2023-06-29 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to recognize the pros and cons of subcontractor default insurance.
* You will be able to discuss how subcontractor default insurance works.
* You will be able to explain how subcontractor default insurance operates as a form of insurance for subcontractor defaults.
* You will be able to review the difference between subcontractor default insurance and performance bonds.