Delegated authority specialist and Lloyd’s broker Endeavour Insurance Services has launched a subcontractor deductible buyback program for large construction wraps designed to support local contractors in the USA.
Distributed through Endeavour’s local USA partner via an online web portal, the wrap deductible buyback reduces costs for general contractors, while protecting the financial interests of subcontractors.
Wraps are often involve multiple parties, including construction contractors, developers, joint venture partners and others connected to the project.
According to Endeavour, local subcontractors can sometimes be put into a potential adverse financial position, or even lose out on projects, as a result of multi-layer deductible programs controlled by the lead contractor, containing deductibles that are unaffordable to smaller sub-contractors.
This buyback program reduces this deductible to a more realistic level for subcontractors, while still protecting their income should issues arise on the project.
Featuring follow-form wording, the policy pays the difference between the deductible of the wrap and the insured’s retention, subject to a maximum amount payable. The lead contractor in the wrap can be protected as well: if all the subcontractors buy this cover it reduces their risk to deductibles and enhances their credit control.
A web portal administered by a local Endeavour partner is used to trade the business with all documents processed electronically.
Founded in March 1999, Endeavour Insurance Services specializes in the placement of business produced by North American and European agents handled under delegated authorities.
Now employing 44 people in its London office, Endeavour has four divisions supporting business from the USA; Canada, Europe and the Rest of the World; Facultative Reinsurance; and Cyber.
Endeavour is an accredited Lloyd’s Broker.