News

CDI: Subcontractors’ & Suppliers’ Dilemma (and Owners’ Jeopardy)

Contractor default insurance (CDI) policies are issued by one carrier and cover only the largest general contractors against the default of major subcontractors. The advantages for GCs include greater control and the ability to “manage” subcontractors.

For subcontractors, this control can lead to serious problems if disputes arise. CDI allows its “Insured” (the GC) to be judge and jury in the issue of subtrade default. The subcontractor is at the mercy of the GC and may find its contract unilaterally terminated with no recourse beyond litigation.

BC Surety and Insurance Outlook 2011

Where have we been?

There is no question that the last year has been a tough one for all of us who make our living in the construction sector. The impact of lower construction volumes and reduced margins showed itself clearly as local surety underwriters saw weaker balance sheets and income statements in most sectors. Fortunately, the federal stimulus money provided a timely boost to the construction sector. In fact, some surety companies ended up reasonably happy with their 2010 revenue levels. As usual, smart contractors found a way to make money despite the economy.

Network Launches New Website: We're Live!

Network Bonding & Insurance Services Inc. has launched a new logo and a new website as they expand their team to pursue new opportunities in the market. Network was founded in 2001 by Ron Dekanich. Ron spent 24 years in the Insurance Industry before starting Network on the principles of customer service, industry knowledge and integrity.