Contractors Insurance in Ontario

Leading Contractors Insurance Tailored to Your Business

Construction, restoring, or installing projects necessitates a great deal of effort, expertise, and accuracy. However, there are serious risks that can occur at any time on the job, including workplace accidents that can result in employee injuries or property destruction. Furthermore, commercial vehicles are frequently used in this field of employment, which could result in claims relating to accidents or collisions. And just when you thought it couldn't get any worse, theft or harm to machinery may also pose a significant issue for your business.

Contractors’ insurance is a necessary part of any construction or installation company because it protects against these potential dangers. Choosing the right insurance plan, on the other hand, can be a daunting prospect, especially if you don't know what your individual requirements are.

This is where BrokerLink comes in. Our expert staff specializes in commercial insurance and is familiar with the specific needs of the construction, restoration, and installation industry. We listen to you and recognize your particular needs so that we can suggest the best contractor’s insurance policy for you.

Our process will start with research, in which we examine the potential challenges and risks associated with your company. Then, to measure the level of coverage you necessitate, we perform a comprehensive risk assessment. Finally, we make a comparison of various insurance quotes from our extensive range of providers to obtain the best possible protection at the best possible price.

Collaborating with a BrokerLink broker ensures that you have the appropriate coverage to protect your company from unforeseen issues and uncertainties. With our expert advice, you can concentrate on what you do best while being entirely confident that you have comprehensive insurance coverage that meets all your requirements. Here is a closer look at the types of contractor insurance policies you may be recommended to purchase for your business:

Commercial general liability insurance

Commercial general liability insurance, also known as third-party liability coverage, is an essential component of a company's operations, and it is one type of coverage that every business must think about. This kind of insurance protects you from claims of bodily harm or damage to property made by others. As a contractor, you frequently work on the properties of your customers, and mishaps can occur.

For example, a client could be injured, or their property could be damaged while you are working. In these cases, you may be subject to a bodily injury or property destruction complaint, which could lead to expensive medical costs or attorney expenses. However, commercial general liability coverage can assist with covering these costs while also protecting your company from economic losses and providing you with the confidence that you are covered while conducting your operations on your job site.

Commercial property insurance

Commercial property coverage is a must-have coverage option for any business that operates from a specific address, regardless of whether it's rented, leased, or owned. The coverage is intended to protect your company's physical property, including the structure of the building, soft furnishings, equipment, stock, and supplies, from numerous different perils and risks.

Commercial property insurance can safeguard your company against a variety of hazards, including fires, vandalism, hail, smoke, lightning, and theft. Should any of these perils occur, the expenses associated with fixing or replacing your property can be substantial, and your company could endure detrimental financial losses if you do not have insurance coverage. Ultimately, you can relax knowing that your company's assets are safeguarded against such potential dangers and that any expenses involved with maintenance and replacement are covered.

Commercial auto insurance

Commercial auto insurance is required for any business that relies on vehicles to function. This coverage is intended to protect your company in the case of a wreck or other mistake involving a car used for commercial purposes.

Commercial auto insurance is a crucial coverage choice that you should think about if you are a contract worker who is always on the move and travelling to different job sites. Cargo vans, sedans, semi-trucks, and dump trucks are all covered under commercial auto insurance. Whether you have one vehicle or a fleet, you need to have the right insurance coverage to safeguard your company from financial losses caused by an accident or other occurrences.

Mobile property coverage

Freight carriers, trucking companies, and manufacturers who transport or ship goods or equipment should consider mobile property coverage. This policy safeguards your products and machinery while they are being transported by land, air, or water. In addition, this type of coverage can provide protection against theft, damage, and loss while in transit or off-site.

Surety bonds

If you own a company that deals with large sums of money or money transfers, you should think about getting a surety bond. This is a type of insurance that safeguards your company against losses caused by employee theft, fraud, or falsehood. Surety bonds usually cover losses caused by a variety of influences, such as theft of money or securities, document forgery or alteration, and embezzlement. This coverage can be extended to both former and present staff members as well.

Additional policies to consider

In addition, the commercial insurance plan mentioned above, business owners and contractors should consider purchasing the following additional policies:

Professional liability insurance

Professional liability insurance, also known as errors and omissions insurance (E&O), is a particular kind of insurance policy aimed at safeguarding professionals from possible litigation or claims brought by clients who believe they have suffered financial harm as a consequence of the professional's negligence, errors, or omissions while performing their services.

Workers compensation insurance

Workers' compensation insurance is a type of insurance that pays benefits to workers who suffer injuries or become ill while at work. Most industries in Ontario require this insurance, which is designed to protect employees from the economic strain of illness or injury at work.

Workers' compensation insurance covers a variety of benefits for workers who sustain injuries or become ill on the job, such as medical costs, lost wages, rehabilitation costs, and disability benefits. The number of benefits that an employee is entitled to be determined by the severity of their injury or illness as well as the laws in their industry.

Who qualifies for a contractor’s insurance policy?

Contractors’ insurance is a critical type of insurance policy that protects subcontractors as well as contractors across a wide range of industries. This policy is particularly crucial to people who work in construction, electrical, plumbing, landscape design, and other hazardous occupations.

Contractors’ insurance can protect you from a variety of risks, such as damage to property, workplace accidents, liability claims, and more. Having the right contractor’s insurance policy can give you peace of mind and help ensure the success of your business, regardless of whether you're a carpenter, painter, HVAC technician, or work in any other related field.

How are construction insurance rates calculated?

The overall cost of each individual contractor's policy will vary according to the client's needs. To begin, according to your particular requirements, each policy will include a variety of coverages. With that being said, the more policies you select, the more you will end up paying. In addition to this, the cost will vary depending on a variety of business-related factors. These elements may include:

The physical location of your business

The dimensions of your property, as well as its geographic location, will influence your price. For example, premium rates tend to be higher in regions that have greater criminal activity.

The type of business you conduct

If you operate in a potentially hazardous sector, you may be labelled "high risk" and face higher insurance premiums.

The size of your company

This factor encompasses the number of staff members you have, the quantity of machinery you own, and your monthly average salary and earnings.

The history of your company

This can refer to a variety of things, including the length of time your business has been in operation to your claim’s history. For example, if you have a history of filing claims, your insurance may increase, as your insurance provider will deem you at a higher risk of filing more claims in the future.

As such, if you are looking for business-related insurance in Ontario, we encourage you to reach out to the Ontario BrokerLink team for assistance! You can reach us over the phone, by email, or receive a complementary and competitive insurance quote online within minutes by using our quote tool.

How much are builders' risk insurance in Ontario?

Builder's risk insurance is a must-have for any Ontario contractor or homeowner embarking on a renovation or construction of a new home project. It protects against a variety of risks that may arise during the course of the project, such as theft, vandalism, fire, and weather-related damage.

Contractors and property owners might be highly susceptible to unforeseen economic losses and could face significant setbacks to their construction projects if this safety net was not in place.

Therefore, when seeking a quote for builder's risk insurance in Ontario, the insurance company may inquire about the following details to get a better idea about how to price your premium:

• The scope of the project you are working on
• The location, size, and value of the building(s) involved in the project
• The expected timeline for the project's completion
• The names of the contractor(s) involved in the project
• Your company's claims history

Using your construction budget as a guideline can assist with calculating the necessary insurance maximum for your policy. Nonetheless, to give you a ballpark figure, a builder's risk insurance typically costs between 1% and 4% of the project's total expense.

Furthermore, builder's risk insurance plans are frequently offered in terms of 3, 6, or 12 months, contingent on the project's estimated timeline. Your policy can also be renewed if your work has not been finished by the term's conclusion.

Are you thinking about purchasing a construction insurance plan before you begin your new project? If so, the expert broker team at Ontario BrokerLink is here to help. We work closely with customers in order to get to know their unique requirements before shopping around for suitable plans from some of Canada's leading insurance providers.

Once we've researched and found the solutions you're looking for, we'll help you get the best price possible; that way, you can feel confident moving forward without breaking the bank.

You can reach the insurance specialists at BrokerLink in Ontario over the phone or by email. In the meantime, if you would like to receive a free competitive insurance quote, make sure to check out our online quote tool! It only takes a couple of minutes –what are you waiting for?

We look forward to working with you on all your insurance needs!

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Since 1991, the BrokerLink team has been dedicated to finding insurance policies that meet the needs and budgets of our customers. We are experts in all things Ontario insurance and can ensure you receive the most competitive rate on your policy.

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You can reach us by phone, email, or in person at any one of our locations throughout Ontario. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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Contractors Insurance Ontario FAQs

What insurance should contractors have in Ontario?

Contractors in Ontario should think about the following types of insurance:

• Commercial general liability insurance: This kind of insurance protects you if you injure someone and damage their property as a direct consequence of your work. It can additionally offer legal expenses cover if you are taken to court as a result of your job.
• Professional liability insurance: Professional Liability Insurance, also recognized as Errors and Omissions insurance, can safeguard you if you are accused of negligence, errors, or omissions in the services you offer. This is especially true for construction companies that offer architecture or consultation services.
• Property insurance: Property insurance protects your company's property, including tools, equipment, and inventory, from loss or damage caused by fire, theft, vandalism, or other covered perils.
• Commercial auto insurance: If you or your workers use vehicles for commercial purposes, you must have commercial auto insurance. It can cover you for accidents, theft, and other occurrences that may occur while you're driving for work.
• Surety Bonds: Certain contracts or initiatives may necessitate the use of surety bonds by contractors. These bonds serve as a guarantee that you will fulfill your contractual obligations, and they can offer additional financial protection for your clients if you do not.
• Workers' Compensation Insurance: Most employers in Ontario are obligated to maintain workers' compensation insurance in order to provide advantages to staff members who get hurt or become ill while at work. This coverage may include medical bills, lost wages, and other expenditures.

How much is contractor insurance in Canada?

Contractor insurance in Canada is priced differently depending on a variety of factors. To begin, the price will differ depending on the kind of coverage you necessitate. For example, if you require general liability insurance, your premium will differ from that of professional liability coverage or commercial auto insurance.

The extent of your company is another variable that may impact the cost of contractor insurance in Canada. In general, the higher the premium, the larger the company. This is due to the fact that larger businesses typically have more employees and equipment, increasing the likelihood of a claim being filed. The sector in which your company operates may additionally have an influence on the price of your insurance. Construction and oil and gas industries, for example, have higher insurance premiums than businesses that are regarded as having lesser risk. Your claims history, the location of your business, and the kinds of tasks you perform are all factors that can affect the cost of contractor insurance in Canada. For example, if you work on larger, more complicated tasks, you may need more coverage, which can raise your premium.

With all that being said, contractors across Canada can expect to pay around $1100 per year to $1350 per year. Again, this is only a rough estimate, and it can be challenging to determine an accurate quote without speaking with business owners directly.

Do you need a contractor’s license in Ontario?

Yes, most construction trades in Ontario necessitate a contractor to have a permit or certification to conduct business. The province has enacted a licensing system in order to guarantee that contract workers and businesses have the necessary training, understanding, and expertise to perform construction projects reliably and safely.

The licensing requirements differ according to the kind of construction job that is being carried out. General contractors, electricians, plumbers, and HVAC technicians, for example, all have distinct registration requirements that are related to their individual industries.

Contractors must typically provide insurance documentation, pass an exam, and prove that they have the required education and expertise in their trade to become licensed. Contractors may be required to meet additional conditions, such as providing references or undergoing a background investigation, as well.

It is essential to keep in mind that in Ontario, unlicensed contractors may be prohibited from performing certain types of construction work. Therefore, as a business owner, it is crucial that you hold all the necessary permits required to legally operate within the province. Once you have completed your licensing requirements, the team at BrokerLink in Ontario is available and prepared to help you determine which type of commercial insurance will work best for you and your business needs.

If I am a subcontractor, do I need to carry contractors insurance?

There is no legal requirement in Ontario for subcontractors to hold their own insurance. It is essential to keep in mind, however, that even though the contractor who employed the subcontractor may have insurance benefits, it may not encompass the subcontractor or their workers.

If a subcontractor does not possess their own insurance and becomes involved in a mishap or causes property damage while engaged in a job, they may be personally responsible for any resulting losses or injuries. It might involve covering medical expenses, damage to property, or even attorney costs if they are sued.

Besides that, if a subcontractor fails to cover the costs of the harm or injuries they caused, their individual assets, as well as their business, may be jeopardized. This is why subcontractors should obtain their own insurance coverage to safeguard themselves and their companies.

Furthermore, as a condition of working on a project, some contractors may demand subcontractors have their own insurance coverage. This is especially prevalent in industries with a high likelihood of incidents or damage, such as construction.

What are the benefits of working with a broker for my construction insurance?

Here are some of the benefits you can experience that traditional insurance providers do not offer:

• The ability to shop around for the best policies from top insurance providers across Canada.
• Unbiased results regarding your Ontario contractors insurance options.
• Potentially massive savings for your contracting business.
• Peace of mind knowing you are getting the best rate possible.

If you have any questions, contact one of our local branches.