The contract surety market is healthy and stable as we head into the second half of 2026, driven by years of increased construction activity and minimal claims losses.
For contractors, the steady marketplace offers an opportunity to work proactively with your broker to prepare to bid larger projects and to ensure you’re managing risk appropriately.
In this publication, we’re sharing information from our corporate surety experts about:
- The state of the surety market
- When it makes sense to use subcontractor default insurance
- Why wrap-up insurance can help lower risks and reduce costs
- How your broker can help set your company up for success
2026 market outlook: corporate surety
The corporate surety market is holding steady – despite some recent slowdowns in the construction industry and ongoing uncertainty about the national economic climate.
Subcontractor default insurance
Subcontractor default insurance (SDI) is insurance that provides protection for large general contractors in the event a subcontractor can’t finish a project.
Using wrap-up insurance for construction projects
For large construction projects, using a wrap-up insurance program instead of a traditional liability insurance program has the potential to reduce project risks and lower insurance costs.
Strategies for working proactively with your broker
As you prepare for upcoming projects, the corporate surety team at Schauer Group recommends working proactively with your broker to ensure your company is set up for success.
