subguard

Subcontractor Default Insurance (SDI): The Alternative to Bonding That GCs Use on Big Projects

Subcontractor default insurance is a GC-purchased policy that pays when a sub defaults — replacing the payment and performance bonds subs would otherwise provide. SDI gives the GC faster claim response and more control over replacement; it gives the sub a lower-cost path to participation. But SDI isn't a universal substitute for bonds, and knowing when each fits the project is the art.