Contractors & Construction Insurance

When you’re in charge of an active construction site, you never know what can happen. A fire could break out on your job site or a crew member could make a project-derailing mistake. As the person who’s responsible for what happens on-site, the last thing you want is to be dealing with the aftermath of a worst-case scenario. 

That’s why you need an insurance policy that’s able to get the job done. 

Here at Insurance Hero, we specialize in helping contractors get the construction insurance they need. With us, you won’t be confused about your policy or stuck in customer service limbo whenever you need to be in touch. Our award-winning team will answer your questions and go over your coverage options with you before recommending the perfect insurance solution for your company.

Would you like to take out construction insurance for your business? We can help! Contact Insurance Hero to learn more about your insurance options today.

What a Contractors Insurance Package Covers

In Ontario, contractors are required to carry commercial liability insurance. As such, most contractors insurance packages will have some form of commercial general liability built into them. 

However, in addition to liability coverage, contractors insurance packages can also include options like:

• Debris removal
• Equipment breakdown insurance
• Builders risk insurance
• And more!

At Insurance Hero, we understand that no two companies will have exactly the same concerns. That’s why we offer a wide range of specialty insurance features to Waterloo-based contractors.

How much should contractors insurance cost?

That’s a hard question to answer. Why? Because there are multiple factors that could change your monthly premium. These include:

1. Your Risk Profile

During a construction project or a renovation, there is always a lot that needs to be done. And while property owners will have expectations around the final results, not all jobs come with an equal amount of risk. 

When calculating your offered rate, the million-dollar question that your insurance advisor has to answer is, “What kind of liability exposures does your business have?”. Your answer here can change your insurance rate in a big way.

2. The Size of Your Company

If you’re operating as a sole proprietorship, you don’t have a lot of workers to insure by default. However, if you’ve been in business for a while and you have several construction crews on payroll, you may have to pay more on a month-to-month basis to ensure that everyone has adequate coverage. 

3. The Value of the Items You’re Insuring

It’s not unusual for contractors to have expensive, industrial-strength equipment and commercial vehicles that they rely on to complete their projects. If that’s you, chances are that you can name a few important tools that you would have a hard time replacing on short notice.

When you’re on a worksite, tools can break down and equipment can go missing in the blink of an eye. The costlier it is to repair or replace your business assets, the higher your premiums are likely to be.

Regardless of your company’s specific circumstances, however, there’s one thing we can promise you:

We’ll always offer you the lowest prices that we can.

Contact Insurance Hero if you’d like to learn more about how our affordable contractor insurance solutions can protect your business while helping you save money.

Do contractors need insurance in Ontario?

Yes, they do!

More specifically, contractors need to carry some form of commercial general liability insurance if they wish to operate within Ontario.

What insurance do I need as a general contractor?

Due to legal requirements, general contractors need commercial general liability insurance at the very least. But in addition to liability coverage, there are a number of insurance coverages that can help general contractors limit their overall liability exposure. Some of these would include:

• Land and water pollution cleanup
• Builders risk insurance
• Equipment breakdown insurance
• Contractor equipment and installation floaters
• And more!

If you’re not sure if you’ve got adequate insurance or if you’d like to make sure that you’ve covered your bases, we can help you out! Our award-winning team is ready and willing to answer any insurance questions that you may have.

What happens if a contractor doesn’t have insurance?

Perhaps the biggest drawback of being an uninsured contractor is the reality that you likely won’t be able to win bids or find new clients if you don’t have proof of insurance. 

From the perspective of the property owner, hiring a contractor who doesn’t have insurance is a financial disaster waiting to happen. Sure, it may not be a big deal if everything works out. But if corrective work is needed or if someone has suffered a serious injury on-site, it’s almost impossible for the affected individuals to collect damages from an uninsured contractor.

For these reasons and more, many clients with deep pockets, like governments and commercial property owners, will refuse to award contracts to uninsured contractors. And while perhaps you could find work as a subcontractor, that lack of insurance will make it harder for you to lead your own projects and scale up your business.

What is a contractor liable for?

Generally speaking, contractors can be taken to court for things like:

• Defective workmanship;
• Breach of contract;
• Third-party injuries; and
• Third-party property damage

Depending on the details of your case, however, a solid and well-constructed contractor insurance policy may be able to cover legal fees and judgment costs on your behalf.

Coverage You Need to Grow Your Business

Now more than ever, construction clients are becoming more particular about the companies they do business with. They want to see that you’re experienced. They want to know that you have skill. And, in the interests of managing risk on their end, they want to see that you have proof of insurance.

On a practical level, insurance is a key part of protecting your company’s finances. All it takes to throw off your cash flow is an equipment malfunction or a car accident on the morning commute. When you have the right insurance policy, you can be compensated for these setbacks while having access to more clients and more projects.

Here at Insurance Hero, we’re committed to helping business owners like you find top-notch insurance solutions. Request your free contractors insurance quote today!