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

Conducted on Wednesday, May 31, 2017
Recorded event now available

This CLE webinar 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?


Michael S. McNamara, Partner
Pillsbury Winthrop Shaw Pittman, Washington, D.C.

Mr. McNamara's practice focuses on litigation of complex construction and engineering disputes, frequently involving claims for additional costs, delays and terminations. He has handled major trials of multimillion-dollar construction disputes and has represented owners, contractors and construction managers in many other cases successfully resolved in settlement.

Masaki James (Saki) Yamada, Partner
Ahlers & Cressman, Seattle

Mr. Yamada’s practice focuses on complex construction, insurance, business litigation, commercial real estate, and communications law. He regularly represents and advises general contractors, subcontractors, developers, business and property owners, and design professionals in a wide range of legal issues from contract negotiations to payment disputes.


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*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.

**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.

CLE On-Demand Video $297.00

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Customer Reviews

The web conference covered the material in an efficient fashion without a lot of duplication.

Matthew W. Willis

Ashley Ashley & Arnold

Excellent topics, discussed very well.

McClure King

Dearborn National

There was a lot of information available on the slides, so it was easy to take notes and have a thorough take-away resource.

Harriet Bildsten

St. Jude Medical

The webinar was very informative on very pertinent matters and had a good flow.

Noam Wiener

Allen & Overy

Strafford webinars are convenient, offer a good variety of topics, and the presenters always seem knowledgeable and well prepared.

Mary Baker

RQ Construction

or call 1-800-926-7926

Real Estate Law Advisory Board

David A. Barksdale


Ballard Spahr

Jacob Bart


Stroock & Stroock & Lavan

Brian W. Blaesser


Robinson & Cole

Ronald B. Grais


Sugar Felsenthal Grais & Hammer

Ren R. Hayhurst


Bryan Cave

Thomas C. Homburger

Of Counsel

K&L Gates

Susan C. Tarnower


Kilpatrick Townsend & Stockton

Clark T. Thiel


Pillsbury Winthrop Shaw Pittman

or call 1-800-926-7926

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