An Introduction to Subcontractor Default Insurance

Presented by:

Ira M. Schulman, Pepper Hamilton LLP

For many years, owners and general contractors have looked for cost-effective alternatives to the traditional payment/performance surety bonds, which are three-way agreements whereby a surety guarantees to one party the performance and/or payment of another party. A new subcontractor default insurance (SDI), issued by Zurich Insurance under the name of Subguard, has emerged as a viable alternative that protects an owner and general contractor from the consequences of a defaulting subcontractor while eliminating many of the delays and other problems associated with traditional surety bonds.

This information-packed program will provide you with a firm understanding of subcontractor default insurance, including coverage parameters, exclusions and other important information.

The informative 90-minute recorded presentation will help you:

• Understand what subcontractor default insurance covers and what is excluded.
• Compare subcontractor default insurance to traditional surety bonds.
• Identify the pros and cons of subcontractor default insurance.
• Estimate the costs involved and evaluate whether it is worth pursuing for this new insurance product.
• And much, much more!

Who Will Benefit?

This program will be of interest to owners, general contractors, subcontractors, attorneys and surety professionals.

Meet Your Presenter:

Ira M. Schulman, Partner,

Pepper Hamilton LLP

Mr. Schulman has over 30 years of experience in all aspects of construction law with an emphasis on all forms of dispute resolution and contract negotiation. Primarily representing public and private owners, as well as contractors, subcontractors, sureties and school districts, he has tried numerous complex construction disputes in jury and bench trials in state and federal courts and before arbitration panels. He also has participated in many mediations and has successfully represented clients with construction contract award issues before various city agencies. Additionally, Mr. Schulman has an active transactional practice and is regularly called upon by owners and contractors to draft construction contracts and agreements.

Mr. Schulman frequently is appointed as an arbitrator by the Construction Industry Division of the American Arbitration Association (AAA), of which he is a member. He also is often chosen as a mediator for construction disputes and has successfully mediated numerous complex construction claims.

Prior to joining Pepper Hamilton, Mr. Schulman was a partner with Mazur Carp Rubin & Schulman, P.C. in New York.

Mr. Schulman is a lecturer on construction law for the AAA and is often asked to speak before various bar, civic and trade associations on issues related to construction law. He is a member of the American and New York State Bar Associations, and is a founding member and present co-chair of the Construction Law Committee of the Westchester County Bar Association. Mr. Schulman is listed in Chambers USA: America’s Leading Lawyers for Business. Mr. Schulman is admitted to practice in New York and many federal trial and appellate courts.