Covers third-party bodily injury, property damage, and legal defense costs.
Covers your tools and equipment from theft or damage while on the jobsite, in storage, or in transit (depending on policy wording).
Covers the contents of your shop, warehouse, or office, including inventory, supplies, furniture, and business equipment.
Insures trucks, vans, and other vehicles used for business purposes. This includes coverage for transporting materials, tools, and employees to jobsites.
Helps with claims alleging mistakes in your design, specifications, or professional advice.
Project-based coverage that protects a building or renovation project while work is in progress.
Covers claims related to spills, contaminants, or environmental damage caused by your work.
Provides extra liability protection above your existing CGL and commercial auto limits.
Many contracts specify minimum liability limits. If you carry less, you may be disqualified from bidding or required to purchase additional coverage.
This adds your client or the general contractor to your policy, protecting them if a claim arises from your work.
A formal document proving you have active coverage. Clients often need this before issuing a purchase order or allowing you on-site.
If you transport materials, tools, or crew in company vehicles, clients may require proof of commercial auto insurance.
Tell us about your insurance needs and current coverage.
We shop multiple trusted insurers to find coverage that fits your needs and budget.
Review your options, choose what fits your needs, and get your policy started, often the same day.
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What Is Contractor Insurance?
Contractor insurance is a bundle of coverages designed to protect your contracting business from common risks like third-party claims, tool theft, jobsite damage, and vehicle-related losses. Instead of managing separate policies for every exposure, contractor insurance packages the protection you need into one comprehensive solution.
Most contractor policies include:
Is Contractor Insurance Required in Ontario?
Not always legally required, but practically essential. While Ontario law doesn't mandate contractor insurance for every trade, most clients, general contractors, and property managers require proof of liability coverage before allowing work to begin. Without it, you risk losing contracts and facing personal financial liability for accidents or damages.
Who Needs Contractor Insurance?
Any contractor or trade performing construction, repair, installation, or renovation work should consider contractor insurance. Whether you're working on residential homes, commercial buildings, or industrial sites, having the right coverage protects your business and helps you qualify for more contracts.
What Contractor Insurance Typically Doesn't Cover
Even with comprehensive contractor insurance, certain situations fall outside standard coverage. Understanding these exclusions helps you avoid surprises and ensures you're taking the right precautions on every job.
Common exclusions include:
Ask your broker to review exclusions based on your trade and contract requirements. Understanding what's not covered is just as important as knowing what is.
Do subcontractors need their own insurance?
Yes. Subcontractors should carry their own contractor insurance to protect themselves from liability and to meet general contractor requirements. If you're a general contractor hiring subs, always request a Certificate of Insurance and consider adding yourself as an Additional Insured on their policy to protect your business from claims arising from their work.
How to Lower Your Contractor Insurance Cost
What does contractor liability insurance cover?
Contractor liability insurance (CGL) covers third-party bodily injury and property damage caused by your work. It also includes legal defense costs if you're sued. For example, if a client slips on your equipment and gets injured, or you accidentally damage a client's property during a job, your liability coverage responds.
How much contractor insurance do I need ($2M vs $5M)?
It depends on your contracts. Many clients require $2M in general liability coverage as a baseline. Larger projects, commercial work, or contracts with municipalities often require $5M or more. Your broker can help you choose limits that meet your contract requirements without overpaying for unnecessary coverage.
Can contractor insurance cover multiple trades?
Yes. Contractor insurance policies can be written to cover multiple trades or operations. However, you must declare all work you perform when applying for coverage. Operating outside your declared trade class can result in denied claims. Be specific about all the services you offer to ensure complete protection.
Do I need coverage for tools in transit or on job sites?
Yes. Standard tools and equipment coverage may only protect tools in storage or at your shop. If you regularly transport tools to jobsites or leave them on-site overnight, you need specific coverage for tools in transit and at job locations. Confirm with your broker that your policy includes these extensions.
How fast can I get a certificate of insurance (COI)?
At Morison Insurance, we can issue certificates of insurance quickly. If you have urgent contract requirements and need a COI to start work, contact your broker directly and we'll prioritize your request.
