Affordable Contractor Insurance - Ontario

What Is Contractor Insurance?

• Contractors insurance is a specialized type of commercial insurance package, made for contractors and construction workers, like flooring specialists, carpenters, roofers, painters, and more. It is tailored specifically to the contractor’s specific type of work.
•  In most cases, it consists of commercial general liability insurance and coverages related to property, equipment, tools, and business income insurance. Each type of construction business requires different protection than others. So, contractors’ insurance is tailored to fit the needs of each contractor.
• The main benefit of contractors’ insurance is that it provides financial compensation in cases of significant losses from a covered event. Additionally, some clients and business owners require that a contractor carry protection before agreeing to go into contracts. Overall, contractors with insurance feel more secure, knowing they can focus on their operations instead of how to save funds for a rainy day.

What Is Covered Under Contractors Insurance in Ontario?

• Commercial General Liability Insurance:

  Commercial general liability insurance for contractors is specifically helpful in case of bodily injury and property damage. For example, an injury can happen if someone slips and falls on your equipment or on the job site, requiring medical expenses. Also, they might sue you, incurring additional legal fees.

  As for property damage, it’s very common, as your employees work on other people’s properties for most of their jobs. In these cases, the insurance company covers the costs if you carry general liability coverage.

• Errors And Omissions Insurance:

  Also known as professional liability insurance, errors and omissions insurance is similar to general liability insurance, though it’s more related to error of judgment. If the contractor or their employees make professional mistakes or oversights, the client may sue.

  Additionally, the client could file claims of faulty workmanship if they’re unsatisfied with the quality of the work. Other case scenarios include delay in delivery, project abandonment, and contractual issues.

• Equipment Breakdown Insurance:

  Contractors work with expensive equipment that might be costly to repair or replace. If the equipment breaks down suddenly beyond the worker’s control, the insurance company covers the repair or replacement costs for the covered machine.

• Tools And Equipment Insurance:

  While equipment insurance covers heavy machinery, tools and equipment cover small tools that are often used in the contracting business. These tools are often fragile and still expensive to replace. Also, they might get stolen because of their small size. This insurance coverage covers the cost of replacing or repairing lost or damaged tools and equipment.

• Commercial Auto Insurance :

  If your business operates vehicles, you are required to include commercial auto insurance in your contractor insurance policy. This insurance coverage pays for the repair costs if the business vehicle is damaged in an accident, as it also financially covers liability claims for bodily injury or property damage.

• Business Interruption Insurance:

  Business interruption insurance is also known as business income insurance. In some cases, an event might lead the business to temporarily shut down or halt operations. That includes complete damage to business property or equipment breakdown.

  In that case, you need money to rent a new place or pay employees for lost income. Business interruption coverage helps cover the expenses up to a limit.

• Commercial Cyber Insurance:

  Nowadays, all businesses have gone digital to run operations and manage and store customers’ data. Unfortunately, hackers with malicious intentions may try to infiltrate your system to steal data.

  The disruption they cause is costly, as you may have to shut down your software, resulting in lost income. You also face the potential threat of data leaks that you have to prevent. With commercial cyber insurance, you can mitigate these risks and recover easily.

• Environmental Liability Coverage:

  This is a limited contractors’ insurance coverage. Still, it’s beneficial for contractors and those with a similar line of work. It comes in handy if you’re accused of causing environmental damage or forced to pay clean-up costs.

• Workers’ Compensation Insurance:

  While commercial general liability insurance kicks in when you cause accidental injury to a customer or a passerby, worker’s compensation insurance pays for bodily injury and lost wages if an employee is injured on the job.