Podcast: The Building BITE
Episode: Demystifying Subcontractor Default Insurance
Please tune in to this episode of The Building BITE Podcast, as we hear from industry experts about key topics to help you be successful. In this episode, hosts Peter Duggan and Mike Diercksen, CRIS, welcome Nils Sorenson, Innovative Insurance and Risk Management Customer Advocate at Gallagher. Nils sets the stage for his podcast, explaining what SDI is and why it was created in the first place. He elaborates on what he believes is the most significant barrier for General Contractors looking to shift from Bonding to SDI.
Throughout the show, Nils breaks down the evolution of SDI into three periods:
- Early Creation
- Product Evolution
- Current Time Period
Nils outlines the influence of Zurich Insurance Group and their Subguard product, first introduced in 1995, which has led the way to what we now know as SDI. Nils thoroughly walks us through the evolution of SDI and how the market has grown from a lone policy to a market that now features 7 Carriers. Nils provides excellent insight into the industry’s evolution when he breaks down the specific changes in the market as more General Contractors are gravitating to the SDI space. One significant change was “an increase in due diligence that was happening with the loss control group” as more GCs bought coverage. He ends the journey elaborating on the current landscape with seven Carriers, their differences and offers additional market insights.
Nils shares direct insights on how Brokers factor into the overall equation as they are the key to the network of distribution. Brokers bring unique experience and expertise while acting as an excellent resource for knowledge sharing and information to Insureds.
Please like, share, and subscribe to this podcast!
Connect with Nils on LinkedIn
View Gallagher’s website at Gallagher
Email Nils at Nils_Sorenson@ajg.com
Connect with Peter Duggan
Connect with Mike Diercksen