Knowledge Corner

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Subcontractor Default Insurance (SDI) provides insurance for general contractors against a default from a subcontractor. It is a risk mitigation tool for General Contractors (GC). The coverage is an alternative to a surety bond and is purchased from an insurance carrier in order to protect the general contractor from the subcontractors they hire. There are two types of default:

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Subcontractor Default Insurance (SDI) provides insurance for General Contractors against default from a subcontractor. The coverage is an alternative to a surety bond and is purchased from an insurance carrier in order to protect the General Contractor from the subcontractors they hire. To get a stronger understanding of Subcontractor Default Insurance, there are two types of default that you should know about: Default of Performance and Insolvency.