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Construction Subcontractor Default Insurance: Maximizing SDI Coverage and Streamlining the Claim Process

Evaluating SDI as Risk Mitigation Vehicle, Minimizing Pitfalls of SDI Policies Covering Contractual Performance Defaults

Recording of a 90-minute CLE webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, May 31, 2017

Recorded event now available

or call 1-800-926-7926

This CLE course will discuss construction subcontractor default insurance (SDI) as an alternative to performance bonds, the factors that should be considered in weighing SDI as an acceptable vehicle for performance risk protection, and best practices to maximize SDI coverage and streamline the claims process.


SDI can be a viable alternative to surety bonds, depending on the size and scope of the project. SDI policies are purchased by the project manager and obligate the insurer to reimburse costs incurred because of subcontractor default.

Construction counsel must understand the differences between traditional performance bonds and SDI insurance, the pros and cons of SDI coverage, and whether SDI is a viable risk mitigation vehicle for a particular client or project.

Additionally, construction counsel must be able to advise clients on steps to take to mitigate some of the potential pitfalls of SDI policies, including maximizing coverage and streamlining the claims process.

Listen as our authoritative panel of practitioners guides you through the pros and cons of subcontractor default insurance, the differences between SDI and surety bonds, and best practices to maximize SDI coverage and streamline the claim process.



  1. Overview of SDI coverage vs. performance surety bonds
  2. Pros and cons of SDI policies
  3. Maximizing SDI coverage
  4. Streamlining the claims process


The panel will review these and other key issues:

  • What are the key advantages of SDI, and what are the drawbacks that must be considered?
  • How do construction lenders view SDI policies as an alternative to performance bonds?
  • What steps can construction managers take to maximize SDI coverage and streamline the claim process?


McNamara, Michael
Michael S. McNamara

Pillsbury Winthrop Shaw Pittman

Mr. McNamara's practice focuses on litigation of complex construction and engineering disputes, frequently...  |  Read More

Yamada, Masaki
Masaki James (Saki) Yamada

Ahlers Cressman & Sleight

Mr. Yamada’s practice focuses on preparing and negotiating construction contracts (public and private), resolving...  |  Read More

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