Ontario Construction Insurance

Construction Insurance Ontario 

The Ontario construction industry is booming. Cities and towns are chock-a-block with builds and renovations. Cranes dot the Toronto skyline. Communities across the province are being transformed. There’s no doubt that construction companies are in high demand, but that doesn’t mean they aren’t also at risk for financial loss without the protection of the right insurance coverage. 

Construction business insurance is essential for those in the construction industry. Construction insurance in Ontario provides a construction company and all interested parties in the property with peace of mind during the course of construction. Construction projects can be a risky and expensive undertaking for businesses to participate in. There can be many unforeseen events, delays, mistakes, and errors. These problems can and do occur. Construction insurance is in place to provide insurance protection in these kinds of circumstances. 

What Is Construction Insurance? 

Construction insurance is a product tailored to protect a construction company best based on its specific operations and those of third parties on construction sites. Construction company insurance protects the property owner, developer, and contractors (including subcontractors) by providing financial compensation for insured/covered losses during the construction of a building or multiple buildings. 

How Does Construction Insurance Work? 

Construction insurance covers a project from start to finish—sometimes even beyond. This means construction insurance coverage from the bidding stage (to secure a contract) to completion when a building is occupied. 

A construction business insurance broker is a trained and trusted advisor who will help contractors and builders get construction insurance. Ontario brokers will gather information about your business, and, generally speaking, an application or applications are required, as the complexity of each construction project is often very different. As you know, each construction project is different and has its own considerations, needs and potential pitfalls. The same applies to construction insurance. Ontario construction company owners can rely on our team of experienced brokers to help them find the best coverage for the perils they are likely to encounter. 

Why Is Construction Insurance Important? 

Construction insurance can protect interested parties’ assets, transfer risk contractually, account for labour changes, and help with financial compensation for covered losses, which may otherwise put a company out of business. Commercial general liability provides funds to pay for judgments/settlements associated with third-party legal matters. Companies can help avoid potential bankruptcy due to damages or losses and potential lawsuits by ensuring proper construction insurance coverage is in place. 

Construction sites are complex. They are busy with lots of people, tools, equipment, and technology on-site. The sites can be dangerous, and unfortunate events can and will occur. It is best to have the proper construction insurance in place so that you are properly protected in the event of a loss. 

How Can Construction Insurance Help Your Business? 

Construction insurance can help your business by assisting the company in securing contracts that, without confirmation of construction insurance in place with limits to meet contractual obligations, the business may not obtain. Construction insurance can also help solidify a company’s strong reputation in the construction industry for being an insured and/or bonded operation. 

Who Needs Construction Insurance in Ontario? 

Anyone generating revenue by offering construction services/operations needs construction insurance. Some examples of these kinds of services/operations include: 

• Utilities contractors (plumbers, electricians) 
• Mechanical contractors 
• Commercial builders 
• Residential builders 
• Government construction builders 
• Bridge construction companies 
• Road construction contractors 
• Landscapers 
• Excavation contractors 

What Are The Main Considerations For Construction Insurance? 

The primary considerations for construction insurance in Ontario can rely on include: 

• Size and location of the construction business (annual gross revenue/employee count) 
• Operations/services that are offered/performed 
• Value and limit of tools and equipment 
• What type of construction project is being undertaken, such as residential, commercial, institutional or government 
• Whether there is a single project or multiple builds 
• Approximately how many multiple builds are expected during the policy period 

These are among some of the factors that will inform a construction insurance broker to determine the types of coverages needed, the limits of insurance, and the premium. When you speak to your Morison Insurance broker, give them as much information as possible about how you choose to run your unique business. No two businesses are alike, so a one-size-fits-all insurance solution just doesn't work for construction insurance. Ontario construction professionals need coverage that is specifically designed to address their company's insurance needs so they have the right type and amount of coverage in place when they need it most. 

What Does Construction Insurance Cover? 

As with most types of business insurance, construction insurance can be divided into two broad categories of commercial property coverage and construction liability insurance. Each category contains a range of coverages, and the specific coverages you need depend on factors like the type of work you do, the equipment you use, and many other factors. 

Construction Liability Insurance 

Construction liability insurance is a set of insurance coverages specifically designed to address the liability concerns that can arise in the construction industry. There are multiple different types of construction liability insurance policies that each offer coverage against a different variety of liability expenses, such as: 

• Commercial General Liability Insurance: CGL insurance is a basic type of coverage for third-party bodily injury, third-party property damage, and advertising injury. If a client visits a job site and injure themselves when they trip over some cords that were not taped down, they could choose to bring legal action against you for causing bodily injury. You could then file a claim on the CGL portion of your construction insurance to receive insurance compensation for the cost of your legal defence and settlement up to the limits on your policy. 

• Construction Professional Liability Insurance: This covers litigation for issues such as faulty workmanship, slander, libel, failure to deliver promised services, bad advice and more. For example, if you signed a contract with a client to complete a project by a certain date and failed to do so, they could sue you for breach of contract, and the resulting costs would fall under the professional liability coverage on your construction insurance. 

• Environmental/Pollution Liability Insurance: This liability coverage applies to scenarios where your business is accused of causing environmental pollution. As a construction worker, you likely deal with toxic substances that could cause environmental harm. But it's important to remember that even substances that aren't toxic, like gravel, can cause pollution if they end up in the wrong place. Environmental/pollution liability can apply to your legal expenses and potentially to clean-up fees and punitive fines. 

• Cyber Liability Insurance: This type of construction liability insurance coverage offers financial protection against the litigation costs that can follow if your business is the victim of a cybercriminal who causes a data breach. 

• Completed Operations Insurance: This type of liability coverage protects businesses from bodily injury or property damage claims arising from work that has already been completed. For example, if you constructed a large deck and it collapsed a year later, causing serious damage to a neighbouring structure, the property owner could allege it was due to your faulty workmanship and take you to court for the cost of restoring their property and replacing the deck. 

• Umbrella Liability Insurance: This broad type of coverage raises your coverage limits for other types of construction liability insurance. 

Construction Insurance Property Coverage 

No one knows better than a construction industry professional just how vulnerable buildings are to serious damage caused by perils such as fire and natural disasters—not to mention vandalism and theft. Whether it's a client's property that you are working on or your own commercial property that you run your business out of, you need the right property coverage on your construction insurance policy to ensure that you won't suffer major financial setbacks in the event of property damage or destruction. 

• Commercial Property Insurance: As a standard part of most business insurance packages, commercial property insurance offers financial compensation to deal with damage to your commercial property and the contents of the property if it is destroyed or damaged by a natural disaster or another type of insured peril. 

• Equipment and Tools Coverage: This is an essential type of insurance for construction contractors that protects valuable tools and equipment from vandalism, theft, accidental damage by a third party and more when it is off your commercial property. As a contractor, you must perform your work on your client's property, and this insurance provides the necessary coverage when you're at a job site or travelling to and from a job site. 

• Builder's Risk Insurance: This type of property insurance coverage applies specifically to buildings under construction. It's also referred to as "course of construction insurance" because it protects builders and other construction professionals from paying out of their own pocket to restore parts of a building or a whole building following damage caused by an insured peril during the course of construction. A building is most vulnerable to causing losses when it is nearly complete but not yet finished because it's not as protected as a finished building, but costly materials and time have gone into constructing it. 

• Business Interruption Insurance: If your commercial property, equipment or tools are damaged, that is going to compromise your ability to carry out your work in an effective, timely manner. While other types of property coverage will cover the cost of repairing or replacing your damaged property, you will still have to deal with ongoing expenses while you're waiting for that to take place, and business interruption insurance applies to those ongoing costs until you're able to get back to your regular business operations. 

• Inland Marine Insurance: The name of this coverage can be confusing, but it doesn't apply to shipping overseas. It's a type of cargo insurance coverage that applies to materials and goods being moved over ground by truck or train. If you manufacture or fabricate products and ship them, even a relatively short distance, it makes sense to look into inland marine coverage for your construction insurance. 

How Much Does Construction Insurance Cost? 

When it comes to the cost of construction insurance, Ontario brokers will tell you it varies significantly because the premium is determined by numerous factors related to the construction business and the construction work that is being done. Some of the factors involved in determining the cost of construction insurance are: 

• Location of the business 
• Size of the business 
• Past insurance claims record 
• Annual gross revenues of the business 
• Size of project/value of building upon completion 
• Duration of construction project 
• Types of on-site operations include demolition, tunneling, drilling, snow removal, mining, etc. 
• Types of construction projects 
• Locations of construction sites 
• Experience level of construction crew 
• Type and value of equipment being insured 

Where Can I Get Construction Insurance? 

Ontario professionals already know that construction projects are complex, and construction insurance can be complicated too. Construction insurance is not a one-size-fits-all product. A generic insurance policy is not suitable for anyone looking for construction insurance. Ontario construction insurance must be tailored to the insured’s specific needs. Builders should speak with an insurance broker specializing in commercial insurance, particularly construction insurance. Ontario construction insurance brokers at Morison Insurance will advise and guide you through the construction insurance process. 

It is vitally important to work with a construction insurance broker who pays attention to details and work with you to make the process of getting construction insurance as simple as possible. At Morison Insurance, we aim to get the right construction company insurance for your construction business. Call us at 1-800-463-8074 to learn more about getting the right construction insurance so you can rest assured you have the protection you need to grow your success in the construction industry. 

How Do I Get A Quote For Construction Insurance? 

If you need a construction insurance quote, Ontario brokers specializing in construction business coverage at Morison Insurance are the best place to start. We’ll take the time to work with you and get to know your business. It’s important to share information about your business and construction work with your broker for construction insurance. Ontario policyholders should know that this process may take some time, but the time is well spent to ensure you get the right construction insurance coverage for your particular insurance needs. So get started today by calling 1-800-463-8074 and we will help you find the best construction insurance quote. 

Construction insurance is complicated and has lots of jargon. There are many construction insurance options, limits, exclusions, and endorsements to be aware of. Your Morison Insurance broker will explain these terms to you clearly. Not all insurance companies offer the same coverage, and prices differ, which is why it’s a good idea to get several quotes from various insurance companies. At Morison Insurance, you can count on your broker to work tirelessly to find multiple quotes to choose the insurance policy and premium right for you. 

It's essential to receive year-round excellent service from the broker who handles your construction insurance. Ontario brokers at Morison Insurance will be available to you throughout the construction insurance policy term. Few things are more aggravating than trying to reach your broker with a question to report a claim or change your coverages—and you can’t contact them. That’s why we ensure we’re always available to serve you and are pleased to help you whenever needed. 

Choose Morison Insurance For Your Construction Insurance in Ontario! 

Morison Insurance is the broker to choose when looking for construction insurance. Ontario brokers at Morison Insurance are trained, licensed and experienced. Morison Insurance is a provincial and national award-winning insurance brokerage focused on providing the best insurance and service. 

At a time when big insurance companies are focused on eliminating the human experience from insurance, we are keeping insurance personal. Insurance is about helping people. It is our pleasure to look after your insurance needs. Morison Insurance is a family-owned and operated company and one of the largest wholly independent single-owner brokerages in Ontario. We lead with a family-first mentality, and every customer is treated like family. Our brokers respond quickly with the information you need. We care. Our goal is to provide personal insurance excellence for every customer. We work for you, not for the insurance companies, and that means your best interests are our priority. Count on our experienced brokers to work tirelessly on your behalf to find you the right construction insurance. Ontario, we're here for you! 

We can be reached at 1-800-463-8074, or fill out the contact form on this page, and one of our commercial insurance professionals will contact you. Our Morison Insurance brokers will provide a free, no-obligation quote to help ensure your company is properly protected. Let's get started!