7/3/2013

A New York appellate court has upheld a lower court's dismissal of a developer's lawsuit against a construction manager that claimed to have obtained subcontractor default insurance. The appeals court found that the developer was not insured under the policy and could not support the argument that it relied on the construction manager's claim of being insured, according to the court. The case highlights an important difference between SDI policies and surety programs, in which dual-obligee riders customarily supplement bonds -- namely, that owners aren't SDI beneficiaries, according to this article.

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