Subcontractor Default Insurance (SDI) protects contractors, developers, and project owners against financial losses arising from the failure of subcontractors to fulfill contractual obligations due to insolvency, operational failure, performance deficiencies, or default during construction and infrastructure projects.

Coverage is designed to support financial stability and project continuity when subcontractor performance issues disrupt timelines, budgets, or project completion.

Coverage typically responds to losses involving incomplete work, defective workmanship, subcontractor insolvency, schedule delays, replacement contractor costs, or additional expenses incurred to complete or correct affected portions of a project.

Coverage may also include protection for:

• Costs to replace or supplement defaulting subcontractors

• Project delay and schedule disruption exposures

• Defective or incomplete workmanship remediation costs

• Additional labour, materials, and project completion expenses

• Investigation, mitigation, and loss adjustment costs associated with subcontractor default events

• Coverage supporting large-scale construction, infrastructure, manufacturing, and development projects

  
  

For organizations operating across multiple jurisdictions, coverage may be coordinated through a Controlled Master Program (CMP), such as the WMB Global Risks Global Master Program, with locally admitted policies where required to support coordinated protection, contractual compliance, and consistent coverage standards across jurisdictions.

Subcontractor Default Insurance is designed to help organizations manage contractor performance risk, reduce financial disruption, and maintain continuity throughout complex construction and infrastructure projects.

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