Contractor Insurance in Kitchener

What Is Contractors’ Insurance and Who Needs It in Kitchener?

Contractors’ insurance is a type of business insurance coverage designed for contractors in Kitchener to protect them from financial issues that can happen while working on various projects. Contracting businesses and individuals need this type of commercial insurance, including:

• General Contractors
• Flooring Contractors
• Electricians
• Plumbers
• Roofers
• Landscapers

Both large teams and independent contractors need contractor insurance to protect against unexpected risks and comply with client requirements, industry standards, and legal obligations. Contact our insurance brokers today to get the best contractors’ insurance quotes in Kitchener.

Why Choose Acumen Insurance for Kitchener Contractor Insurance?

• With extensive knowledge in contractors’ insurance and 40 years of experience, our insurance brokers can help you identify and mitigate potential risks. They will help you along the way.
• We tailor the insurance policy to fit your budget and insurance needs. We know the industry inside out and what it takes to protect your livelihood.
• We provide advisory claims support, which means an expert insurance broker will help you navigate the claims process.

If that’s what you’re looking for, get a free Contractor insurance quote in Kitchener now!

What Does Contractors’ Insurance Coverage Include in Kitchener?

These coverages may not be required by law, but they are recommended for enhanced protection.

Commercial General Liability Insurance

This coverage protects contractors against third-party liability claims of bodily injury or damage to someone else’s property. These claims are very common on job sites, where accidents can happen despite strategic planning. Commercial general liability coverage helps pay for medical expenses, legal fees, and any settlements or awarded damages associated with general liability claims.

Commercial general liability insurance covers legal fees and settlement costs, if any. It may also cover repair costs in case of property damage or medical expenses in case of bodily injury.

Professional Liability Insurance

This coverage, also known as errors and omissions insurance, protects businesses against claims of professional negligence, mistakes, errors, or omissions in the service you provide. It also helps compensate your client if they suffer a financial loss due to bad advice, faulty design, or failure to deliver services as agreed.

Business Interruption Insurance

This insurance policy, also known as business income insurance, helps cover lost income and operating expenses if your business is temporarily closed due to a covered event. This type of Kitchener business insurance for contractors is important because it helps you pay for ongoing expenses like rent, payroll, and utilities while repairs or rebuilding take place.

Commercial Property Insurance

If you own a store or a warehouse, commercial property insurance helps protect your business property and its contents from hazards like fire, theft, vandalism, and certain natural disasters. This coverage protects the contents of your building as long as they are owned by your business and used for business purposes.

Commercial Auto Insurance

If your contracting business in Kitchener, Ontario, uses, rents, or leases any type of vehicles, whether it’s a car, van, or truck, you’re mandated by law to carry commercial auto insurance. This coverage helps protect your business from financial losses related to car accidents, theft, or damage. It also provides liability protection if one of your vehicles causes injury or property damage to others.

Workers’ Compensation Insurance

Contracting businesses are legally required to carry workers’ compensation insurance in Kitchener if the business has four or more employees. However, for construction businesses, this coverage is mandatory even if you have one employee.

Builders’ Risk Insurance

Buildings under construction are susceptible to different types of damage. Luckily, contractors don’t always have to pay for that damage out of pocket. Your insurance company will cover the costs if you have builder’s risk insurance. Builder’s risk coverage includes protection from damage to the building, equipment, and building materials, from risks like fire, vandalism, and some natural disasters.

Equipment Breakdown Insurance

Equipment breakdown coverage, also known as boiler and machinery insurance, covers sudden, unintentional mechanical and electrical failures, paying for the repairs or replacement, business interruption, and spoilage of goods costs, if applicable. Equipment breakdown coverage is usually an add-on to property insurance.

Tools and Equipment Insurance

Every contracting business has important tools and equipment it uses daily. Accidents like equipment theft, sudden breakdowns, loss, or accidental damage can be very costly, and they can disrupt your business operations. Tools and equipment insurance helps you repair or replace essential equipment and tools in case they are lost, damaged, or stolen.

What Are the Most Common Exclusions in Kitchener’s Contractor Insurance?

• Intentional Damage: Contractor insurance and other types of insurance don’t cover legal expenses related to intentional damage or misconduct.
• Contractual Liability: Contractor insurance doesn’t cover liability you assume under a contract unless the policy specifically includes it.
• Cyber Attacks: Cybercrimes aren’t covered by contractors’ insurance, and if you use digital databases, you need to have cyber liability insurance.
• Criminal Acts: Insurance doesn’t cover criminal acts committed by you or any of your employees, including theft, fraud, and employee dishonesty.
• Workplace Injuries: Contractors’ insurance doesn’t automatically cover employees’ injuries on the job site. These claims are covered under workers’ compensation insurance.

The Right Coverage for General Contractors Starts Here

Managing construction projects and dealing with many parties can be a challenge and risky, especially when unexpected issues or disputes arise. General contractors are responsible for coordinating timelines, supervising contractors, and ensuring compliance with safety standards and client requirements. With so much at stake, the costs can be overwhelming if something goes wrong, whether it’s property damage, a missed deadline, a workplace injury, or a liability claim. We get all that at Acumen, and when we partner with you, we’ll get you the best insurance coverage from a top-rated insurance company in Kitchener. Contact us today for a free quote.

How Much Is Contractors’ Insurance in Kitchener?

The cost of contractor insurance in Kitchener is around $450 to $1,000 per year for $1 to $2 million in general liability coverage. This estimate applies to small, low-risk contracting businesses with a history of minimal to no claims. Your actual insurance premiums depend on factors like the size of your contracting business, the type of work you do, your claims history, and the coverage limits you choose.

The Best Tips to Get Lower Premiums for Your Contractor’s Insurance

Follow these tips from our experts at Acumen to get lower rates for your contractor’s insurance policy:

• Bundle Your Policies: If you combine several insurance policies into one bundle with the same insurance provider, you’ll get a discount on your premiums.
• Increase Your Deductibles: If your business has the budget to increase your deductibles, then your monthly or annual premiums will likely decrease as a result.
• Maintain a Clean Claims Record: Fewer claims show that your business is low risk, which can lower your insurance rates.
• Invest in Safety Training: Implementing Safety Training Programs can reduce onsite accidents, which means fewer claims and lower insurance premiums.
• Review Your Coverage Annually: Always assess your insurance needs to ensure your commercial insurance policy is providing the right coverage and that you aren’t paying for any unnecessary extras.
• Work with Our Insurance Brokers: Partnering with Acumen means that you get access to a wide network of reliable insurance providers, giving you more options and better pricing.

Our brokers work for you, not the insurance companies. We always aim to get you the right coverage for your business that provides financial security without unnecessary costs or confusing insurance terms. Contact our team today for a quote and start protecting your contracting business!

Common Insurance Claims Contractors Face in Kitchener

• While working on a project, one of the subcontractors accidentally damaged the client’s kitchen cabinets during installation. The client files a claim for repairs, and without commercial general liability insurance, the contractor would be held responsible for covering the full cost of the claim.
• During the installation of a roof, a heavy piece of equipment slips and crashes into the client’s exterior wall, causing significant structural damage. The client files a claim for repairs.
• During a renovation project, an electrical issue causes a fire that damages part of the client’s property. The client holds the contractor responsible and requires compensation.
• While driving to a job site, a contractor’s work van rear-ends another vehicle at a red light. The other driver files an injury claim, and the vehicle needs repairs.
• After completing a tile flooring project, a client calls back weeks later and reports that the tiles are lifting and cracking. They claim poor workmanship and request that the floor be redone.
• While unloading materials at a residential job site, a contractor leaves tools near the front walkway. A neighbour trips over them and suffers a broken wrist. They filed a lawsuit for medical expenses.