Save on contractor insurance in Ontario

Whether your operation is big or small, contractors insurance protects your business from the financial implications of theft, property damage and legal action, even when it arises from work done for you by subcontractors. An uninsured loss could put a huge financial strain on your company. We’ll create a package of great coverage at an even better price to help safeguard your business and the reputation you’ve built.

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Coverage to protect both your business and clients

More than most businesses, contracting is based on trust. Your clients are inviting you into their homes and businesses, and trusting you not only to do the work, but also to safeguard their property. Many clients will ask to see a certificate of insurance before you start a job. Having the right coverage in place ensures you’re protecting both you and them, while providing quality work and an amazing customer experience.

No matter the job, we’ve got you covered

We have coverage for all kinds of contractors and tradespeople. We’ve listed some of them below.

General contractor’s insurance

Get full coverage for risks related to work done by you, your staff and subcontractors.

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Carpenters insurance

Whether you do trim, cabinets or framing, we have the right coverage for your carpentry business.

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Bricklayer insurance

Great coverage at competitive rates for your truck, trowels, bosun’s chair, liability and more.

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Basement contractors insurance

Work with subcontractors or finish basements on your own? We’ve got excellent coverage options for you.

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Flooring contractor insurance

Beyond standard coverage, we can insure flooring in transport or waiting for installation.

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Drywall contractors insurance

We have protection for your tools and truck, and for common risks like dust damage.

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Painting contractors insurance

Liability coverage against spills and other mishaps, plus insurance for your vehicle, tools and more.

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Roofers insurance

Asphalt, metal or whatever kind of roof you install, we have you covered for liability, your tools and more.

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Plumbers insurance

Whether you do residential or commercial installs or repairs, we’ll create tailored coverage that’s right for you.

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Electrician insurance

Excellent coverage for electrical contractors, including liability from electric shock, fire and more.

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HVAC contractor insurance

We cover commercial and residential HVAC contractors for common risks like fire and burst pipes.

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Landscaping insurance

Coverage for landscapers and snow removal pros to protect against the unique risks your business faces.

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Handyman insurance

Protect your business against theft of your truck, tools and other risks and liabilities.

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Get a free quote on contractor insurance

We’ll help you get contractor insurance customized to your exact requirements. Being an outlet for over 70 of Canada’s top insurers means we have access to some of the best custom and out-of-the-box coverages and prices in Ontario. You never have to search again, we’ll take care of all the details and get you the best insurance possible.

What’s covered by contractor insurance?

Whether you’re a general contractor, subcontractor or tradesperson, policies generally include the following types of coverage:

General liability

Pays court awards and legal fees if your contracting business is liable for damages or injuries.

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Commercial property

Coverage for any buildings your company owns, or for upgrades to a rented space.

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Business contents

Furniture, computers, supplies and more are typically covered even for home-based businesses.

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Tools and equipment

Protection for hand tools, small power tools and equipment like ladders, safety gear and more.

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Commercial auto

Covers company cars, as well as business use of personal vehicles.

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Business interruption

Replaces lost revenues if damage from a fire, storm or other insured events prevents the business from running.

Other coverages to consider

Depending on the exact nature of your contracting business, you may require these coverages:

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Builder’s risk coverage

For new builds and major renovations, this covers buildings under construction and materials.

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Installation floater

Protects lumber and other building materials during transport and while awaiting installation.

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Cyber insurance

If you store customer information electronically, this protects your business against data breaches and hacks.

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Fleet

If your business has five or more vehicles, fleet coverage can save you money on your policy.

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Equipment breakdown

Covers sudden, accidental damage to machinery and equipment necessary to run your business.

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Pollution liability

Protection If your works exposes clients to asbestos or mold or causes environmental issues.

Good to know: Common questions about contractor insurance

Contractor insurance is actually a number of different coverages that are bundled together to meet the needs of your company. The following examples relate to the most common coverages:

General liability – If work done by your plumbing business leads to water damage at a customer’s home, your general liability policy will pay to fix the damage so you don’t have to.

The tools of your trade – If your reciprocating saw or other tools are stolen while at a worksite, this coverage will pay to replace them, and may cover the cost of rental equipment in the short term so that you can keep working.

Commercial vehicles – If you have a car, van or truck that is used for business purposes, your commercial vehicle policy will pay to repair or replace your vehicle if it’s damaged, destroyed or stolen. It also includes liability coverage that pays out if your business is sued.

Commercial property – If you have a physical business location, a commercial property policy can pay for damage to the buildings, theft or damage of contents, and lawsuits if someone is hurt while visiting your office/shop.

Contractor insurance typically includes coverage for:

General liability – Provides coverage if people sue your business.

The tools of your trade – Protects hammers, drills and saws from theft, damage or loss. Larger tools and equipment like generators, excavators and backhoes need to be insured individually.

Commercial vehicles – Coverage for company cars, vans, trucks or anything else that has a license plate from theft, damage or loss.

Commercial property (if you have a physical business location) – Protects your office or shop from theft, fire, etc.

Business interruption – Replaces lost revenues if you have a fire, theft or storm damage that prevents the business from running for a time.

Depending on the nature of your contracting company and the types of risks involved, you may want other coverage, including equipment breakdown insurance, product liability insurance, errors and omissions insurance, and pollution liability insurance.

The cost of contractor insurance in Ontario starts at less than $1,000 a year and depends on a number of factors, including:

– The specific type of contracting you do
– Where your business is located
– The size of your business (annual revenues)
– Whether or not you have employees
– Your years of experience and those of your employees
– Your previous claims

As with most insurance, you can usually reduce your premiums by choosing lower policy limits and higher deductibles.

In Ontario, contractors are not legally required to have insurance, but may be required to have insurance for the following reasons:

– Subcontractors may need insurance in order to get work from general contractors.
– Banks may require proof of insurance for a business loan.
– Customers may ask for proof of insurance.

Contractor insurance is sometimes called contractors combined insurance because it combines a number of different coverages to meet the specific needs of your contracting business. A contractors combined package can include any or all of the following:

  • General liability insurance
  • Tools and equipment insurance
  • Commercial vehicles insurance
  • Commercial property insurance
  • Product liability insurance
  • Errors and omissions insurance
  • Business interruption insurance
  • Pollution liability insurance
  • Cyber liability insurance

Contractor protective insurance is another way to describe a general liability policy that covers your contracting business in the event that your work or that of your employees leads to injuries, illnesses, damage to property or other losses for a customer or third party.

Pollution insurance is a type of liability insurance that covers your business in the event that someone falls ill or suffers a financial loss as a result of pollution or contamination caused by your work or that of your employees. Even if your business doesn’t handle highly toxic materials, pollution insurance may be a good idea to have.

Here are some examples of pollution claims:

  • Improper installation of plumbing contaminates drinking water with mold.
  • A homeowner falls ill from breathing welding fumes.
  • In an older building, renovations accidentally release asbestos into the air.

It’s important to note that most general liability policies exclude pollution-related losses.

These are really two different coverages. Tools coverage is for hand tools and smaller power tools (under $2,500), and is a bit of a catch-all, meaning you don’t have to tell your broker when you buy a new drill.

Contractor equipment insurance is for tools and equipment over $2,500 in value, including things like compressors, generators, bobcats and bulldozers. These items have to be added individually to your larger business insurance policy.

In both cases, coverage will pay to repair or replace the tools and equipment if they are lost, stolen, damaged or destroyed. Learn more here.

Yes and no. First of all, if you are a general contractor, you need to insist that all your subcontractors carry their own liability insurance. It’s often a requirement of your policy, and if they don’t, it could affect your coverage.

That said, in some cases your coverage could pay for losses that were caused by a subcontractor. In those instances, your insurance company could sue the subcontractor to recover their losses.

If you are a subcontractor who is working under a general contractor, you need to have your own contractor insurance in place to ensure that your business and your customers are protected. Most general contractors will insist on it.

Only vehicles that are licensed for the road require auto insurance. So a good guide is if the machine has a license plate, it needs auto insurance.

That said, they should be included on your commercial insurance policy to protect them from physical damage and theft.