Subcontractor Default Insurance

Subcontractor default insurance (SDI) protects businesses from financial losses caused by subcontractors' failure to fulfill their contracts.

Builders, general contractors, and construction project owners contact the Buildsure team to protect their businesses from subcontractor failure. Whether you'd like advice, a review of your current policy, or a subcontractor default insurance quote, the team is here to help.

What is Subcontractor Default Insurance (SDI)?

Subcontractor default insurance (SDI) is a type of business insurance many builders, general contractors, developers, and construction project owners carry. SDI protects against financial losses from a subcontractor failing to fulfill its contractual obligations.

What's Covered Under a Subcontractor Default Insurance Program?

A typical subcontractor default insurance program covers the costs associated with a subcontractor's failure to complete work on time or within budget. The SDI policy covers the costs of replacing the defaulting subcontractor, finishing the remaining work, and any resulting damages or liabilities from the subcontractor's failure to fulfill its contractual obligations.

Who Can Benefit From Subcontractor Default Insurance in Canada?

Various construction stakeholders, such as builders, general contractors, developers, and project owners, will all benefit from the coverage in a subcontractor default insurance policy, which protects them financially.

An SDI policy transfers the risk of subcontractor default from the business contracting the subcontractor to the insurance provider, making it a great added layer of protection for companies in the construction industry.

FAQs of Subcontractor Default Insurance

Here are a few questions our clients often ask us about subcontractor default insurance.

How Much Does Subcontractor Default Insurance Cost?

Several factors determine how much subcontractor default insurance costs. These include the size, scope, and length of the construction project, the level of risk associated with the subcontractor's performance, the coverage limits, deductible, financial stability of the insured party, and current market conditions.

To get an accurate cost estimate for subcontractor default insurance, connect with the Buildsure team, who can assess your project requirements, source competitive quotes from multiple insurers, and advise you on selecting the best policy for your business.

Where Can I Buy SDI Coverage?

The Buildsure team is here to help you purchase SDI coverage. They work with multiple insurance companies, giving you access to various SDI providers and coverage options. They will compare the quotes they receive and negotiate terms on your behalf, ensuring you receive the most comprehensive coverage at the best rates.

Why Do Builders Love Buildsure?

Our Buildsure broker, Ryan, has been an essential part of our team, ensuring that we're covered for all eventualities as we tackle new projects and challenges in the homebuilding sector.

John Vranic

Vranic Homes

The in-depth knowledge of the construction sector has been instrumental in identifying potential exposures and crafting policies that address them comprehensively. Their responsiveness and attention to detail make them a pleasure to work with, and we highly recommend their services to anyone in the homebuilding industry.

Raj Rai

Raison Homes

Our broker has been an invaluable partner in helping us navigate the complexities of the homebuilding industry. They've taken the time to understand our business inside and out, providing us with personalized insurance solutions that offer the right level of protection at competitive rates.

Kevin Sharpe

Sharpe Industries Inc.

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