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Publisher: Third Party

Understanding Subcontractor Default Insurance

By Author: Construction Concepts, Publisher: Third Party

Subcontractor default insurance (SDI) transfers subcontractor default risk to an insurance carrier, ensuring that the policyholder is reimbursed and enabling the work to be completed. Unlike traditional surety bonds — which can delay progress due to mandatory investigations — SDI allows for immediate project continuation without the lengthy investigation process. As a result, it has become a favorable proactive risk management tool and a viable alternative to traditional bonding.

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