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Ontario Construction & Contractors Insurance
The Basics of Contractor Liability Insurance
A construction job site can be a hectic place. On any given day you may experience several different risks. Whether you are a small independent contractor or a large company, finding the right kind of contractors insurance protection is essential to help you avoid the legal hassles or financial disasters. At McDougall Insurance we have a team dedicated to providing the proper risk management for your contracting business.
McDougall isn’t like your average insurance provider. We are the go-to for many working professionals in Ontario. As a trusted insurance broker, we always look to fulfill your requirements and insurance needs first. Accidents happen, no matter the precautions we take to avoid them. Always be prepared by having the right insurance coverage with McDougall. We look after the insurance so all you need to worry about is running your business. For when you want Ontario contractors insurance that matches your enterprise’s requirements, look no further than McDougall Insurance Services. We will help you find the best insurance company in Ontario.
What is Contractors Insurance?
Contractor’s insurance is a very broad term for business insurance against risks common to all industry specialty fields, and it is also a type of commercial insurance. Coverage for general contractors may be vastly different from what is required for a roofing specialist, an electrician, or even a plumber. It is important that you have coverage which matches your industry’s requirements and your individual business specifics. Regardless of which trade you specialize in, there are a few components which are standard for any contractor’s insurance policy.
Commercial Property Insurance
This protects your businesses buildings, personal property, equipment and tools from direct physical loss.
Commercial General Liability Insurance
This component of a contractor’s insurance policy is liability insurance for contractors to help protect you financially from costly claims or potential legal action should anyone allege your business operations caused bodily injury or property damage.
Business Vehicle & Fleet Auto Insurance
This is designed to provide coverage for your business vehicles ( Fleet Insurance ). Whether you have one commercially used vehicle or an entire fleet.
Contractors Insurance Ontario Options
The following coverage may be unique to certain contractors or operations and can be added as an option to your contractor insurance policy.
Installation Floater
This coverage may not be required for every situation. However, plumbers, electricians or HVAC companies may use this coverage as it protects any property you own or are responsible for while in transit or at a job site.
Tool Floater
Additional coverage designed to cover any equipment or tools while at a job site.
Builders Risk Insurance
This coverage is typically required before undertaking any contracting operations. It is designed to provide coverage for a project that is damaged before completion. This coverage is especially important for contractors working on buildings and construction projects.
Pollution Insurance
Environmental Liability insurance protection in case your operation pollutes the environment.
Contractors Surety Bonds
Larger contractors often require a surety to bid on large contracts. This guarantees the Contractor will complete the project in accordance with the contract documents.
Performance bonds
Coverage if the job is only partially finished and you are unable to complete it. The performance bond takes care of the rest.
If you want further details on any of the coverage options listed above, be sure to contact an Ontario contractor insurance broker. They can sit down with you and discuss your circumstances and review what coverage options may be of interest to you.
What is the Cost of Contractor Insurance in Ontario?
The price of contractor insurance in Ontario is $450 per year on average for a policy of up to $2 million. Each contractor pays a different fee depending on different factors.
Factors Affect the Cost of Contractor Insurance in Ontario?
As a contractor in Ontario, you know how important it is to stay protected against any unexpected incidents that may arise during a project. This is why liability insurance for contractors is essential for your contracting business.
But with so many options to choose from, it can be challenging to determine the cost of contractor’s insurance in Ontario.
We will break down the several factors that affect the cost of contractor’s insurance, so you can make an informed decision for your business.
Type of Coverage
The cost of contractor’s insurance in Ontario depends largely on the type of coverage you need. There are several types of contractor’s insurance policies available in Ontario, including general liability, professional liability, and worker’s compensation insurance. The type of coverage you choose will affect how much you pay for your contractor’s insurance.
Business Size
The size of your business also plays a role in determining the cost of contractor’s insurance. This is because a larger business typically require more coverage than small business or an independent contractor. For example, if you have several employees, you will need worker’s compensation insurance, which can be more expensive than general liability insurance.
Type of Work
The type of work you do as a contractor can also have an impact on the cost of your insurance. Some types of work are riskier than others, which means you may pay more for insurance coverage. For example, if you work in construction or contracting, you may pay more for insurance than if you work in home renovation, as the former has a higher risk of injury and damage.
Industry Standards
The cost of contractor’s insurance is also influenced by industry standards. In Ontario, there are certain levels of coverage that are expected by clients and industry partners. The cost of insurance will vary based on the level of coverage required by your industry, and failure to meet those standards could lead to lost business opportunities.
Insurance Provider
Finally, the cost of contractor’s insurance in Ontario also depends on the insurance provider you choose. Different providers charge different rates, and the rates can vary based on several factors, such as experience and reputation.
Who Needs Contractor Insurance in Ontario
As a working professional, do you need contractor insurance? Ontario business operators and contractors who operate in the following industries should carry contractors insurance:
- General Contractors
- Handyman Services
- Excavating Companies
- Electricians
- Plumbers
- Roofing Contractors
- Masonry Contractors
- Painting Contractors
- Drywall & Siding Contractors
- HVAC Companies
Insurance for Handymen
Handymen do various jobs that put them at risk. That’s why they need contractor insurance. A comprehensive insurance package for handymen should include commercial general liability insurance, tools and equipment insurance, pollution liability insurance, commercial property and commercial auto insurance. Handyman contractor insurance costs $450 per year as a starting price.
Insurance for Electricians
Electricians do a dangerous job, handling live wires, active Circuits, and specialized equipment. That’s why they need insurance for protection. Electrical contractor insurance typically includes general liability insurance, workers’ compensation insurance, business income insurance, and hired & non-owned auto insurance. Electricians usually pay an average of $625 to $950 a year in insurance.
Insurance For plumbers
Plumbers face a lot of risks on their day-to-day job, including damage to existing pipes, improper installation, gas leak/explosion, fire or water damage. That’s why they need adequate coverage. Their insurance bundle should include commercial general liability insurance, debris removal insurance, equipment breakdown insurance, commercial van insurance, professional fees insurance, and more. The Starting price for a plumber contractor’s insurance bundle is $540 a year.
Insurance for roofers
Roofers need insurance to protect them and their livelihood from accidents. Their insurance package includes general liability coverage, tools and equipment insurance, and pollution liability insurance. They could also add professional liability insurance to their package. On average, roofers insurance starts at $540 per year.
Insurance for Painters
Because mistakes are inevitable, painting contractor insurance policy package. Recommended coverages for painters include commercial general liability insurance, pollution liability insurance, and tools and equipment insurance. The starting price of a contractor insurance package for painters is $450 per year.
Why McDougall Insurance for Your Ontario Contractors Insurance?
Contractors insurance can be complicated. Our specialists know the ins and outs of the coverage available and will work alongside you to ensure you have a policy in place that makes sense for your business. After all, everyone is different and when it comes to your construction insurance needs yours may be very different than the next guy’s. Assessing the risk you may encounter on a day-to-day basis is challenging and that is why so many contractors rely on McDougall Insurance & Financial. Thanks to our size and experience we have access to more markets than any other broker in Ontario. This helps us find tailored coverage and pricing options for all our contracting clients. Let one of our contractors insurance brokers show you how we can help your business, contact us today.
In general contractors’ insurance can be pretty broad. It is important that your broker work with you personally in order to assess your individual risks and determine what threats you may be exposed to in order to ensure that you get the most of your coverage. There’s a lot of things to be considered, general liability insurance, commercial property, installation floaters, and more. Our brokers will discuss with you the importance of all the coverage that is available to you and whether or not it will be of benefit to you to add to your policy. That’s the McDougall difference.
Useful Resources for Ontario contractors:
Contractors Insurance FAQs
Your insurance will usually only cover your full-time staff. If you need a subcontractor to complete a particular job, however, you can add the subcontractor as an insured person, although it will increase your premium. Clarify all the details to your insurer to avoid having your claim denied.
If the subcontractor is not insured, the liability falls to the contractor.
You can purchase a separate contractor’s insurance policy as a subcontractor to make sure that your coverage is sufficient for all your projects. Your employers will no longer have to add you every time to their policy.
The cost of construction insurance can vary based on factors like the size of the project, type of construction, and coverage needed. It’s best to get a personalized quote from an insurance provider to understand the specific cost for your project.
Construction bonds do not offer the same protection as contractor’s insurance. The bidding bond confirms that the contractor will finish the job, assuring that they agree to the terms of the contract.
A performance bond covers your client financially in case you are unable to finish the project. They do not cover other risks such as bodily harm, property damage, or replacement of equipment. Construction bonds and contractor insurance are separate ways to reduce risks. They cannot be substituted for each other.
Builders risk insurance, also known as course of construction insurance, covers buildings and materials during construction. It helps protect against risks like fire, theft, and vandalism. In Ontario, it’s a valuable safeguard for builders and property owners during the construction phase.
Contractors don’t usually need professional liability coverage unless they provide professional advice as part of their job. Consider adding professional liability insurance to your policy if you work in construction management. You can get legal fees and compensation if your client takes legal action because of complications they allege you caused.
Yes, insurance is crucial for handymen in Ontario. Liability insurance can protect against third-party injury or property damage claims. It’s wise for handymen to have coverage, considering the nature of their work.
- The industry you’re in and the services you provide
- The size and location of your business
- The number of employees working for your business
- Annual and projected revenue
- History of insurance claims your company made
Contractors in Ontario should consider several types of insurance:
- Business Liability Insurance: Protects against third-party injury or property damage claims.
- Commercial General Liability (CGL) Insurance: Offers broader coverage for various liabilities.
- Tools and Equipment Insurance: Covers tools and equipment against theft or damage.
- Professional Liability Insurance: Essential for contractors offering design or consulting services.
Areas We Serve
- Arnprior
- Bancroft
- Barrie
- Barry’s Bay
- Belleville
- Brighton
- Brockville
- Carleton Place
- Cobourg
- Cornwall
- Eganville
- Embrun
- Gananoque
- Kemptville
- Kingston
- Madoc
- Midland
- Morrisburg
- Napanee
- North Bay
- Orillia
- Oshawa
- Ottawa
- Parry Sound
- Pembroke
- Penetanguishene
- Perth
- Petawawa
- Peterborough
- Picton
- Prescott
- Sudbury
- Sunderland
- Trenton
- Wellington
- Winchester
What Our Customers Are Saying
Eric Irvine
Been dealing with McDougall/Brister Group Winchester for at least the past 5 years and the service has been excellent. Our broker William Barclay is very helpful and helped us save money with the best possible insurance quotes and goes above and beyond with his customer service!
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