What is "significant" is relative to the
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Financial resources of the contractor
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Sophistication of their subcontractor selection process
and most importantly
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Appetite for bearing risk
It is a common business decision to either retain risk or seek to transfer some or all of it. Subguard has proven to be an excellent option for a number of companies, and its success is well documented. Not only has it proven effective in mitigation of losses, it has also contributed to the profits of many of its policyholders.
For those companies who view the level of risk retained under a Subguard program to be too much, and a policy of selective risk transfer over risk retention the course best suited to their specific company, then our Surety Based Risk Management program is the best option.
For more information on subguard go to
Zurich Website: http://www.zurichna.com/zus/zsource.nsf/display?openform&id=98
IRMI Presentation October 2007:
http://www.irmi.com/Conferences/Crc/Handouts/Crc27/Workshops/ManagingRetainedRiskOfSubcontractorNonperformance.pdf