The role of default notification in SDI coverage for prime contractors, subcontractors and their respective roles
Subcontractor Default Insurance (SDI) is marketed as a substitute for a subcontractor performance bond, providing coverage for a prime contractor’s losses due to a subcontractor’s failure to perform on a project. In a recent American Bar Association article, colleagues and dispel the common misconception that a subcontractor has to be declared in default in order to trigger SDI coverage.
