Is Contractor Insurance mandatory for contractors and subcontractors before signing project contracts?
If you’re a contractor, the answer to this question is “Yes.”. And if you’re a subcontractor, the short answer is “Maybe.”.
In Ontario, contractors are legally required to carry liability insurance. So if you’re a general contractor, an independent contractor, or a tradesperson who offers construction and renovation-related services, you’ll need to have contractors insurance to meet your legal obligations. In addition, many employers will require you to show proof of insurance before they’ll award you with a contract.
If you’re a subcontractor, however, you may be covered under your general contractor’s insurance policy. But not all general contractors will coordinate on insurance and many subcontractors will technically work as independent contractors on certain projects. As such, it may be worth your while to speak with a broker about your insurance options.
What Does Contractors Insurance Provide?
From where we stand, contractors insurance offers at least one key benefit:
Financial protection in a worst-case scenario.
There are few places more dangerous to third parties than an active construction site. If you and your team are sued for damages or personal injuries, a solid insurance policy can cover your legal costs.
That being said, however, personal injuries aren’t the only risk associated with construction projects and renovations. A mistake during the toilet installation process could cause leaking in the unit below, a group of thieves could steal your raw materials, or your equipment could break down while you’re on the job. Contractors insurance makes it possible for you to protect your personal and professional assets.
What is Contractor Insurance?
The easiest way to explain contractor insurance is to describe it as business insurance for contractors, tradespeople, and subcontractors.
Anything can happen on a construction site. But contractor insurance makes it possible for you to be prepared.
What does it cover?
Commercial general liability is the main coverage that most contractor insurance packages will include.
But in addition to liability insurance, policies can be modified to include features like contractor equipment and installation floaters, debris removal, and equipment breakdown coverage.
Not sure what to include in your contractor insurance policy? Contact us to discuss your insurance needs.
Why do you need contractor insurance?
In our experience, there are three major reasons why contractor insurance is important:
- Fires, theft attempts, and other insured perils can sweep through your work site at any time
- Contractors insurance is legally required for contractors and construction tradespeople
- Insurance can help you protect your bottom line if an injured party or an affected property owner decides to sue you
Are you ready to protect your business with contractor insurance? Request your free insurance quote today!
Protecting Companies That Build Our Communities
From office buildings to new apartment complexes and residential homes, the construction industry is an essential part of what makes London such a fantastic place to live.
Here at Insurance Hero, we’re passionate about helping contractors and construction tradespeople like you secure incredible insurance at equally incredible prices. Contact us to discuss your insurance journey today.