Contractor Insurance in Oakville
In most cases, A contractor’s job is high-risk, with so much on the line. You’re building a reputation while maintaining your safety and protecting your equipment. You run the risk of malfunctioning equipment, lost tools, workplace injuries, defective products, and more. With the right contractors’ insurance policy in Oakville, provided by Acumen Insurance Group, you can put your worries behind you. We provide coverage for general contractors and flooring specialists, giving them the protection they need to do their best work. Get a contractor’s insurance quote now!
Get a QuoteWhy Choose Acumen Insurance for Oakville 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 Oakville now!
What is Contractor Liability Insurance?
Insurance for contractors is a specialized business insurance package designed for the needs of contractors and construction workers, like flooring specialists, painters, roofers, carpenters, and more. Each profession has its own recommended insurance coverage.
Typically, a contractor’s insurance policy has commercial general liability insurance, property insurance, equipment breakdown insurance, and business income insurance. However, commercial insurance coverage types may vary from one contractor to another.
Contractor insurance provides a safety net against financial losses that happen because of a covered event. Often, clients and business owners make insurance a requirement as part of their contract to protect their investments. Insurance provides essential protection to contractors, as well as compliance, reassurance, and security.
Who Needs Contractors’ Insurance Protection in Oakville ?
- General Contractors
- Flooring Specialists
- Electricians, Plumbers, and HVAC Technicians
- Carpenters and Masons
- Roofers and Painters
- Landscapers and Excavators
- General Contractor Insurance in Oakville: Working as a general contractor is not for the weak. They oversee construction operations from start to finish, which carries many risks along the way. From managing employees and subcontractors to handling heavy machinery, they require protection against any unexpected events. Acumen Insurance Group provides them with the best insurance solutions at affordable rates.
- Flooring Specialists in Oakville: Flooring specialists face unique risks, like physical injuries, exposure to hazardous chemicals, and fire hazards. Having adequate protection is essential for them to perform their job without worry. Acumen Insurance offers specialized coverage options for flooring specialists, ensuring their craft is shielded against any accidents.
Is Contractor’s Insurance Mandatory in Oakville?
Yes, a contracting business is required to carry contractor insurance in Oakville. Here are the legally required types of contractor insurance coverage.
- Commercial General Liability Insurance: Commercial general liability insurance (CGL) is a type of commercial insurance coverage. It protects businesses in case of bodily injury, property damage, or advertising injury, all of which are common in the world of contractors.For example, if a third party is accidentally injured on your construction site, like a pedestrian tripping over your tools, for example, they may sue your business. In that case, CGL covers the legal fees.An example of property damage would be if you or an employee damages the flooring in a client’s home while installing tiles. The client could sue for damages, asking for compensation to repair the damage. CGL coverage would help you pay for that. .
- Workers’ Compensation Coverage: Contractors who have one or more employees working for them are legally required to carry workers’ compensation insurance. This coverage helps contractors offer compensation to employees who get injured on the job. It pays medical fees, legal fees, and lost wages in case of a bodily injury that an employee sustains.
What Does Contractors’ Insurance Cover in Oakville?
These coverages may not be required by law, but they are recommended for enhanced protection.
Commercial General Liability Insurance
General liability insurance is an essential coverage for contractors. It covers liability claims of third-party bodily injury and property damage. It also covers the medical expenses in case of bodily injury and repair costs in case of property damage.
Examples:
- A client falls on the stairs of your construction site, sustaining injury. They may sue you, requiring you to pay medical bills to healthcare specialists and legal fees for your defense team.
- You’re fixing a client’s flooring when your tools accidentally scratch hardwood floors or tiles. They sue you for damages. Your commercial general liability coverage pays for legal fees and damage repair costs.
Professional Liability Insurance
Unfortunately, clients won’t always be satisfied with your work. Delayed deadlines, negligence, or breaches of duty are all grounds for an expensive lawsuit. If that happens, your professional liability insurance policy can save you from having to pay so much money. It covers legal expenses, including lawyer fees and the settlement amount.
Examples:
- A client claims you gave bad advice regarding the solution to a leaky roof, and that your advice led to damaging leaks.
- Your subcontractor installs the AC the wrong way, and you’re accused of neglecting to guide them properly.
Commercial Auto Insurance
Using a vehicle as part of your business operations makes it a commercial vehicle that requires a commercial auto insurance policy. In other words, any damage will not be covered by personal car insurance policies. If you have more than 4 commercial vehicles, fleet insurance is more cost-effective than getting a separate policy for each.
Examples:
- A truck carrying your equipment crashes into the backyard of a client’s house. The homeowners can sue you for damages. Commercial auto insurance covers damage, repairs, and legal expenses.
- A subcontractor collides with another vehicle. Your insurance company pays to repair the car.
Workers’ Compensation Insurance
Workers’ comp is required by law for all contractors. It protects you and your employees from injuries sustained on the job site or while performing the job. In case of injury or death, it covers medical treatment, lost wages, ongoing care, disability benefits, and funeral costs.
Examples:
- A subcontractor breaks a leg after falling off a roof that they were repairing. They are unable to work for a few months. Workers’ comp covers their medical treatment and lost wages until they can get back to work.
- A carpenter loses their fingers on the job. They get medical treatment and disability benefits.
Builder’s Risk Insurance
Also known as course of construction insurance, builder’s risk insurance is a type of property insurance specific to the construction industry. It protects properties that are under construction from property damage. Covered risks include fire, lightning, hail, explosions, and vandalism. It’s crucial for general contractors to be prepared, as many accidents and unforeseen events can occur during a construction project.
Examples:
- Someone vandalizes the construction building with spray paint. Builder’s risk insurance pays for the labor cost to remove the paint.
- A hailstorm cracks roofing tiles, and water seeps into unfinished interior walls. Your insurance pays for materials, labor, and related loss mitigation.
Business Interruption Insurance
Business interruption insurance, also known as business income insurance, is a crucial addition to your insurance plan. It covers lost income, payroll, rent or lease, utility bills, and ongoing expenses if you have to shut down your business operations temporarily.
Examples:
- Your carpentry workshop catches fire, destroying tools and equipment. You would have to shut it down to rebuild it for two months. With business interruption insurance, you can still pay your employees and get income.
- A windstorm damages your mobile jobsite trailer, where you store permits, plans, and scheduling software. Without access to the trailer or documents, you can’t proceed with upcoming jobs. Business income insurance can help you make ends meet until you can resume work.
Environmental Liability Insurance
This limited liability coverage protects contractors from liability claims related to unintentional pollution. If accused of environmental damage or forced to pay clean-up costs, the insurance company steps in to cover the expenses.
Examples:
- A renovation contractor accidentally seals in hidden water damage behind drywall. Months later, mould forms and causes illness.
- A roofing contractor’s sealants and construction debris are washed into storm drains during heavy rain, contaminating a nearby pond.
Equipment Breakdown Insurance
Most types of contractors use heavy and expensive machinery that is expensive to repair or replace. If the equipment breakdown is unintentional and due to a covered event, you don’t have to pay the cost of repair or replacement; the insurance company handles that.
Examples:
- A power surge damages your equipment. The insurance company covers repair costs, temporary replacement rental, and lost income.
- Your air compressor fails during flooring installation, slowing down work for two days. Insurance pays for repair costs, lost income, and potential penalties due to project delays.
What’s Not Covered Under Contractors’ Insurance?
The insurance company doesn’t cover these instances:
- Damage that is intentional or intended for malicious reasons.
- Equipment breakdown due to poor maintenance.
- Incidents that aren’t included in the insurance policy.
How Much Does Contractor Insurance Cost in Oakville?
The cost of contractor liability insurance differs from one professional to another, depending on the trade, coverage options, business size, and claims history.
On its own, commercial general liability insurance ranges $425 to $1,000 per year for a $2 million standard coverage. Increasing the coverage limits to $5 million may increase the premiums to $100 per month.
Getting a comprehensive insurance policy that includes tools and equipment insurance, installation floater, and business interruption insurance may start at $725 per year.
Factors that Influence the Cost of Contractors’ Insurance in Oakville
- Type of Work Done: The risk factor for each industry is different. For example, construction work is more risky than landscaping. The riskier the trade is, the higher the insurance premium is.
- Location: Operating in areas with higher construction activity or stricter regulations, like Oakville, can influence insurance costs. Urban density and proximity to Toronto are also factors that lead to increased premiums. Additionally, if you regularly travel outside Oakville for work, insurers may factor in the increased travel risk and vehicle use.
- Claims History: A clean record with no past claims often qualifies you for lower premiums or claim-free discounts. On the other hand, frequent claims or lawsuits, especially related to property damage or injuries, can result in surcharges or difficulty finding affordable coverage.
- Coverage options and limits: Higher coverage options or limits increase both protection and monthly premiums.
- Deductibles: Increasing your deductible decreases your premiums. However, we recommend setting a reasonable deductible amount that you can afford at any point.
- Business size: Factors like business size, revenue, and payroll also influence the insurance policy cost. Higher revenue and more employees equal higher insurance rates.
- Years of experience: Seasoned contractors are better at mitigating risks because of experience. They may get a more decreased price, depending on their claims history, than newly licensed workers.
How to Get a Cheaper Contractor Insurance Coverage in Oakville?
You can save on your insurance policy with a few tips and tricks.
- Increase your deductible to decrease your premiums. Still, make sure that the deductible is doable any time anything unexpected happens.
- Work with a local insurance broker. Partnering with a local Oakville-based broker or one experienced with Ontario contractor markets is key to finding good, affordable coverage. They are knowledgeable about regional regulations and building codes, required and optional coverages, and can negotiate coverage on your behalf.
- A lot of insurance companies offer discounts for combining multiple coverages under one provider for up to %20. It also simplifies policy management.
- Only buy the insurance coverage you need. Make sure you’re not carrying excessive coverage limits that are more than what is required. Also, ensure that your tools and equipment coverage is based on actual replacement value, not overestimated numbers.
- Implement risk management strategies to decrease the chance of accidents. Insurance companies reward businesses that demonstrate low risk. Train your employees on safety protocols and maintain accurate incident logs and daily jobsite reports.
- Review your insurance policy regularly. Your business changes, and so does the insurance market. You may find a different price structure, new discounts, or new, cheaper insurers. You may also find that you can do without some of the coverage options you previously added to your policy. Our experienced insurance brokers can help you find better deals and coverage options.
Contractors' Insurance in Oakville FAQs
Typically, you’ll need a mix of policies, including:
- Commercial general liability for third‑party injuries or property damage
- Tools and equipment coverage for losses on and off job sites
- Commercial auto insurance for vehicles travelling across the GTA,
- And optional add‑ons like professional liability for design or consulting services, and pollution liability if you’re dealing with environmental exposures.
For a typical $1 million general liability policy, most Oakville contractors pay between $650 and $2,500 per year, based on their trade, business size, coverage limits, and claims history. Additional coverages, such as auto, tools, or professional liability, will increase that amount.
Yes. Your general liability policy usually only covers your business and employees. If you hire subcontractors, it’s important to verify their individual insurance or add them to your policy to ensure there are no gaps; otherwise, liability could fall back on you.
If your services include design, engineering, consulting, or project management, professional liability (E&O) is highly recommended, even required for many municipal or commercial contracts. It protects against financial losses if your advice or planning results in errors, omissions, or delays.
Areas We Serve
Explore the regions where we provide exceptional insurance services.
Get Started Now
You can focus on developing your trade with ease of mind, while we protect you with contractors’ insurance solutions in Oakville. Get a Quote