XL Insurance, the global insurance underwriting operations of XL Group, has launched new subcontractor default coverage, ConstructAssure, to protect general contractors from financial losses when their subcontractors fail to perform contracted services.
The company said ConstructAssure will offer coverage for both direct and indirect costs incurred by general contractors when a subcontractor defaults, and available with limits of liability up to $50m per loss and $150m policy aggregate.
With $75m or more in annual subcontract costs, ConstructAssure is specially designed for general contractors and construction managers.
XL Insurance’s subcontractor default business vice president and profit center head Jason LaMonica said risk management is more critical than ever in the current construction market, with this new market alternative, the firm is well-equipped to help contractors protect their profits, improve business practices with subcontractors and keep their project on time and on schedule.
The XL Insurance companies provide surety, property, including Builder’s Risk, excess and primary casualty, environmental, professional and other specialty insurance coverages to the construction industry.