Subcontractor Default Insurance

Subcontractor Default Insurance (SDI) is a specialized insurance that protects construction project owners and contractors from financial losses if a subcontractor fails to complete their work. Instead of relying on traditional bonds or warranties, SDI provides coverage for costs associated with replacing or completing subcontractors who default due to financial trouble, insolvency, or other issues. It offers a more flexible and sometimes more cost-effective way to manage such risks, ensuring the project can stay on schedule and within budget if a subcontractor cannot fulfill their obligations.