SureBuild Project Completion Insurance – Proactive Insurance in the Event of Borrower Default
How do you currently approach loans for sponsors with low liquidity or lack of experience? Construction loans are often much riskier than conventional commercial real estate loans, in large part due to the risks associated with execution. What happens if the developer or contractor fails, and the project goes significantly over budget? The borrower could walk away, leaving the lender with a half-built project, costs spiraling out of control, and poor collateral to protect it from loss. There is a less costly alternative to those credit enhancement products that is both faster to fund than a bond and is also proactive in helping prevent loss. This alternative is called SureBuild. SureBuild is project completion insurance that is underwritten by Lloyd’s of London and offered by Saint Vincent. An innovative option, SureBuild helps to resolve typical pain points when dealing with surety bonds or subcontractor default insurance (SDI). SureBuild protects the lender.