Section 4.5 Subcontractor Default Insurance

• Library: Construction Law 2016 Supp

B. (§4.5) Subcontractor Default Insurance

Subcontractor default insurance can be purchased to insure against contractor default. It is used in lieu of performance and payment bonds. Like efficacy insurance, the number of insurance carriers providing this coverage is few, with Zurich North American being the only viable player presently selling this insurance product. It introduced the product in 1996. The coverage is written on Steadfast Insurance Company paper, which is one of its primary surplus lines carriers. To date, two-thirds of its buyers have been prime contractors, with the balance being owners. Revenues running through the prime contractors’ programs...