Contractor Abandoned job after receiving most of the money

[J Lee]

I had a large electrical job that I went through a construction loan to finance. The electrician was paid installments and draws mainly through our lender. We also paid directly for supplies and materials.

Come to find out most of the work that was to be completed has not been done yet. After chasing and following up aggressively (even involving our lender) the contractor has disappeared. 

We have the insurance information for the contractor and was wondering if anyone had experience pursuing a claim through the insurance company for an abandoned job? In addition, since there was loan money involved, not sure if those funds were used incorrectly for other instances instead of the job. 

Any guidance or experience that can shared will be great appreciated.