Liability Insurance for Contractors 

Are you a general contractor, construction tradesperson, or independent contractor? Do you spend a lot of time working on construction sites or doing major renovations in London?

If your answer to any of those questions was, “Yes.”, then liability insurance is a must-have for your business.

Whether you’re building a residential dwelling or a commercial building, construction projects have a lot of moving parts. As such, there are plenty of opportunities for a third party to get seriously hurt on-site or for a mistake during the build to damage someone else’s property.

But even if liability insurance is a necessity, you don’t want to take out just any insurance policy. You want your policy to be designed with the needs of London-based contractors like you in mind. 

Are you ready to take out liability insurance for your contracting business? Request a free quote from Insurance Hero today.

Insurance Considerations for Independent Contractors

When you’re an independent contractor, you don’t have the same concerns as a full-time employee. Sure, you’re expected to produce results and get the job done every time you take on a new project. But because you’re technically self-employed, you may need to have your own insurance. 

By our count, there are three factors that London-based independent contractors need to be aware of as they evaluate their insurance options:

1. The Services You Offer

Some tradespeople are painters while others specialize in areas like demolition, window or cabinet installation, or HVAC. Although every job is important to the build, not every service will carry the same amount of risk.

If anything goes wrong, will the window have to be replaced or will the building’s foundation need repairs? Will the tree removal process only affect your client’s property or could a falling tree do damage to the neighbour’s side of the fence?

Your answers to these questions could have a major influence on your insurance needs.

2. The Structure of the Projects You Take On

When there’s a project going on, it’s not unusual for general contractors to take on full responsibility for the build. What this often means for subcontractors and independent contractors is that the general contractor may try to cover everyone under the same policy. 

If your work schedule involves a lot of subcontracting work, you may have coverage through the general contractor when you take on the job. But if you’re mostly working solo or tackling projects independently, you may want to take a closer look at your insurance options.

3. The Price

When you get right down to it, price is an important consideration for every independent contractor. After all, you don’t want to be the businessperson who’s overpaying for services if you can help it.

Here at Insurance Hero, our award-winning team of brokers is committed to ensuring that every customer gets excellent insurance at the lowest prices possible. Get in touch with us to discuss your insurance needs today!

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.”.

Here’s why:

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:

1. Fires, theft attempts, and other insured perils can sweep through your work site at any time
2. Contractors insurance is legally required for contractors and construction tradespeople
3. 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.