Since 1996, Willis, has been an innovator in subcontractor default insurance (SDI) and risk management. As North America’s largest and most comprehensive SDI Broker, we continue to lead the way by setting industry standards from the point we introduced and pioneered the first SDI policy, Subguard. Since then, SDI has evolved into a vital component of risk management for many in the construction industry, allowing for successful risk transfer on construction projects throughout North America.
The growth of the SDI market has attracted many leading construction carriers globally, providing contractors with unprecedented flexibility and levels of coverage. SDI serves as a crucial risk tool for managing subcontractor and supplier exposure providing certainty for general contractors, owners, developers, subcontractors and construction managers by insuring against the loss associated with the failure of first-tier subcontractors. When subcontractors or critical suppliers fail to perform per their contracts, it can lead to significant setbacks such as rework, project delays, increased costs, and reputational damage. By blending risk transfer and risk acceptance, SDI maximizes the benefits and provides a means that positively impacts a contractor's quality, safety and bottom line.
At Willis, our Default Insurance Group (DIG) is renowned for its in-depth knowledge, technical services, comprehensive training, and unwavering dedication to client success. We craft strategies aligned with individual client methodologies to achieve uniquely tailored, cost-effective SDI programs. We keep our clients informed about technology advancements, subcontractor prequalification solutions, policy developments, and industry best practices to help them maintain sophisticated risk management solutions.
Choosing Willis, means accessing a specialized team of industry leaders, whose goal is to help our partners navigate the complexities of subcontractor defaults and their financial implications effectively. Our team evaluates a general contractor's readiness and collaborates on the administration of a successful SDI program. We understand the best practices for subcontractor prequalification, selection, claims preparation and management is vital for establishing favorable SDI terms and pricing.
Our services include:
- An assessment of SDI applications customized for market segments, geographies, procurement methods, and risk management objectives.
- In-depth analysis and negotiation of tailored program elements to match a contractor’s risk appetite.
- A thorough review of policy terms and conditions to ensure adequate coverage aligned with specific business needs.
- Development and execution of strategies for implementing SDI programs while achieving targeted loss reserve levels.
- Assistance from dedicated claims specialists experienced in managing SDI claims. Our team provides claims advocacy for clients to keep the claims process moving forward and helps keep any impacted projects on schedule.
- Analysis of critical subcontractor prequalification, payment, procurement and project management information systems and databases to ensure the information driving risk management analysis and SDI enrollment is adequate and accurate.
- Engagement of our forensic accounting expertise to aid with the documentation of very complex claims scenarios.
- Dedicated program administrators that work with the carriers to ensure timely enrollment, reporting and detailed documentation of program exposure. We seek to achieve an enrollment and billing process that helps result in positive cash flow to the contractor.
- We annually host the single largest SDI focused Forum that is supported and attended by the marketplace carriers and by many contractors of all sizes.
Through detailed analysis of subcontractor prequalification and critical project management systems, alongside forensic accounting expertise, we ensure precise documentation for complex claims scenarios. Willis remains a trusted partner in navigating the complexities of risk management with SDI, offering comprehensive solutions to support and protect our clients’ interests.
