XL Catlin’s North America construction insurance business has teamed up with TradeTapp, a construction tech start-up, to provide subcontractor default insurance (SDI) clients with access to TradeTapp’s platform in order to make better hiring decisions.
TradeTapp’s platform helps general contractors assess the companies they hire as subcontractors by using an algorithm that identifies risks based on industry data, according to XL Catlin.
“Giving our SDI clients access to this platform will help them make informed, data-based subcontractor selections, and avoid the hefty financial losses and reputational damage that can occur when a subcontractor defaults and is unable to finish contracted work,” said Jason LaMonica, the profit center head of XL Catlin’s North America construction SDI business. “Teaming up with TradeTapp allows us to give our clients’ risk management efforts a boost as well as our own.”
“Subcontractor selection is largely a broken process in construction,” said Justin Levine, founder of TradeTapp. “Too many decisions are made without proper visibility into what’s happening downstream because contractors aren’t able to leverage industry data, particularly within the region they’re operating in. Our platform is designed to both identify risk as well as provide a roadmap to the specific controls that we can put into place to help mitigate these concerns.”