Subcontractor Default Insurance

Coverage to help you concentrate on your business.

There’s enough to worry about on a large construction project. Construction Managers/General Contractors shouldn’t have to worry about another company’s financial condition, but that’s exactly what happens if you are relying on multiple subcontractors to complete a project.

Subcontractor Default Insurance (SDI) is an innovative risk management solution that helps construction contractors manage the risk of subcontractor or supplier default. SDI provides comprehensive coverage for all enrolled subcontractors while enabling general contractors to regain control of their projects if a subcontractor defaults.

Coverage Features

Coverage includes the costs of completing any unfulfilled subcontractor or supplier obligations, including costs related to subcontractor replacement, job acceleration, extended overhead, liquidated damages and claim preparation expenses. Additional features include:

  • Indemnification for direct and indirect costs resulting from default in performance of any enrolled subcontractor or supplier
  • Broad coverage for all enrolled subcontractors and suppliers that qualify under the contractor’s pre-qualification system


  • Empowers the contractor to immediately evaluate and manage subcontractor default situations
  • Provides first-party coverage enabling non-confrontational resolution of claims
  • Assists in identifying the root causes of construction operational and management issues
  • Offers more control over the pre-qualification and subcontractor selection processes

We routinely help large general contractors place subcontractor default insurance to cover this risk. But we also go way beyond that. Our team of veteran construction experts has placed many SDI programs and will work with you to create subcontractor evaluation systems so you reduce the odds of working with troubled companies.

Practice Leader

Franz Wagner

Executive Partner, National Accounts

Licensed Professional Engineer; service in U.S. Navy Civil Engineer Corps

25 years of risk management experience

Practice Leader

Harry R. Johnson

Executive Partner, National Accounts

35 years of construction industry experience