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Philadelphia Surety Blog

Tag: Subcontractor Default Insurance

Subcontractor Default Insurance Versus Surety Bonds

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in General on Jun 13, 2016.

Although it’s hardly a new product at this stage, the introduction of Subcontractor Default Insurance (“SDI”) is much more recent than the use of surety bonds. Many of the very large general contractors are now using SDI because it allows them to control the claims process a bit more. These policies, while useful, should not be confused with surety bonds though. There are some important distinctions between the two that are worth noting.

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