Topic Thread

1.  Subcontractor Default Insurance

Posted 3 days ago
Edited by Michael Hogan 21 hours ago
Our company is looking into SDI and I was wondering what the costs are for this product. In the case of a claim, is the payout 80% of losses after deductible and copay is met? Does anyone have anything they might be willing to share?

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Michael Hogan CCIFP
Construction Accounting Supervisor
Thompson Thrift Construction
Terre Haute IN
(812) 242-1198
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2.  RE: Subcontractor Default Insurance

Posted 3 days ago
Michael - I underwrote Subguard at Zurich for four years.  If you'd like to call me this afternoon I can go into some detail on the premiums for the product.  My number is 610-256-3379.  4pm today or anytime tomorrow morning is good.

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Mara Johnston BA, MCP
Vice President of Business Development
Star America Capital Partners
Roslyn NY
(610) 256-3379
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3.  RE: Subcontractor Default Insurance

Posted 21 hours ago
Do you have anytime to discuss the product today or tomorrow morning?

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Michael Hogan CCIFP
Construction Accounting Supervisor
Thompson Thrift Construction
Terre Haute IN
(812) 242-1198
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4.  RE: Subcontractor Default Insurance

Posted 2 hours ago
Mike - I am available to discuss today after 2pm or Monday or Tuesday morning next week.

Let me know what works best for you.

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Mara Johnston BA, MCP
Vice President of Business Development
Star America Capital Partners
Roslyn NY
(610) 256-3379
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5.  RE: Subcontractor Default Insurance

Posted 3 days ago
Michael, the pricing and payout is often based on your own claims experience.  Our policy is 100% payout but after a large deductible, with premiums in the .8-1.5% of covered subs range.  I hope that helps.

 

 

R. Patrick Lloyd  | Chief Financial Officer
Golden Construction, LLC
2212 First Avenue South
Birmingham, AL 35233
www.goldenconstruction.com
P.  205.327.6617  |  C. 205.283.8936  |   F.205.327.6667

 

  

 






6.  RE: Subcontractor Default Insurance

Posted 21 hours ago
This is very helpful. If you don't mind me asking, how much revenue do you do each year? Is this product only geared towards large firms? That is the feeling we got from a seminar we attended last week.

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Michael Hogan CCIFP
Construction Accounting Supervisor
Thompson Thrift Construction
Terre Haute IN
(812) 242-1198
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7.  RE: Subcontractor Default Insurance

Posted 3 days ago
Hi Mike,

In addition to the cost, you may also want to investigate these critical points of comparison to a performance and payment bond provided by subcontractors:

  1. What protection go you get from a P&P bond, that is absent from subcontractor default insurance?
  2. When does subcontractor default insurance come into play compared to how a bond responds to a problem?


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Steven Golia
Director of Surety
Bonding Pros
Haddonfield NJ
(856) 304-7348
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