Contractors Insurance Ontario

Insurance For Contractors In Ontario 

As a contractor and builder, you know that when you need a hammer, you use a hammer. When you need a drill, you use a drill. You choose the right one when you need a specific tool to do a job properly. Using the proper tool is critical; you will want to do the same regarding contractor insurance. 

Contractor insurance is a tool to ensure you, your business, and your employees are appropriately protected from risks arising while operating your business, similar to how PPE protects you and your employees from physical danger. Proper protection is essential, so having the right contractor insurance is just as essential. Ontario contracting professionals who experience a loss could be left with a heavy bill if an accident were to occur. Those who have inadequate coverage, or even worse, no coverage, will need to pay these costs out of pocket. Such large costs could be crippling, especially for someone who runs an independent business. 

Insurance brokers are here to provide the information you need about contractor insurance. A broker with specialized training in business insurance can assist you with getting contractor insurance that meets your needs. As brokers, we aim to provide you with the peace of mind that comes with knowing you have the right contractor insurance. Ontario contractors who have a contractor insurance policy that is suited to the needs of their individual businesses can focus on what they do best: operating and growing their company while serving their clients. 

Get the best contractor insurance coverage for your unique business needs, including contractor liability insurance! Ontario contractors, whether you are an independent contractor specializing in one trade, a general contractor, or a large corporate firm, you’ve come to the right place for complete, reliable insurance coverage. Our brokers represent the most reputable insurers in Ontario. They will arrange comprehensive coverage for all aspects of your contractor’s business. 

We can provide contractor insurance coverage not only for the liability of your operations but also for your truck or fleet of vehicles, your tools, equipment, rented equipment, your materials at job sites for installation, business interruption coverage, and a variety of extra expenses should a loss occur. 

What Is Contractor Insurance? 

Contractor insurance is a specialized commercial insurance package tailored to a contractor’s specific type of work. It usually consists of commercial general liability, along with commercial building, property, tools and equipment, and commercial automobile insurance, among other, more specialized types of coverage.  

In addition to these contractor insurance coverages, additional coverage may be required depending on the contractor’s business type. For example, a residential plumber who travels to their clients’ homes with a focus on smaller jobs and has the time to serve plenty of clients per week will have very different insurance needs than an electrician who serves large businesses and only takes on a couple of clients per week due to the sheer size of each project. As a result, they will have completely different contractor insurance policies. 

At Morison Insurance, our brokers know that it can be difficult and time-consuming for contractors to assess their risks accurately when they need contractor insurance. Ontario brokers on our experienced team specializing in risk assessment can make the process simpler and faster. We will ask questions about your company, such as what work is done, the size of your business, how many employees you have, and more. This means that you will get a customized contractor insurance policy suited to your particular needs instead of one that’s just copied and pasted from another client. Your dedicated broker will get to know your business so they can help you determine the Ontario contractor insurance plan you should have. 

Who Needs Contractor Insurance In Ontario? 

You will likely need Ontario contractor insurance if you perform maintenance or repair services for commercial or residential customers. Each type will require its own type of insurance due to the differing risks each type of contractor faces. 

Here are some examples of types of contractor insurance that exist: 

• Arborist Insurance
• Builders Risk Insurance 
• Drywall Contractors Insurance 
• Electrician Insurance 
• Handyman Insurance 
• Home Builders Insurance 
• HVAC Contractors Insurance
• Mechanic Insurance 
• Painters Insurance 
• Plumbers Insurance 
• Roofing Contractors Insurance 
• And more 

If you are unsure if you require contractor insurance or what coverage you require, speak to a Morison Insurance broker. We are here to help. 

Is Contractor Insurance Mandatory? 

While contractors are not required by law to have contractor insurance, Ontario professionals who have had to deal with major financial setbacks will tell you contractor insurance is a great way to protect yourself and your business from risks faced regularly as a contractor. 

Contractors face various risks, such as damage to their tools, theft, bodily injury, property damage, or being sued if an error is/was made in a project. Claims arising from these risks are often costly. With insurance, contractors could avoid high expenses (such as legal fees or replacing their items), which they must pay out-of-pocket. This damage to a budget can irreparably harm a contractor’s business. Also, note that in many cases, contractors must show a certificate of insurance before they get a contract and/or begin a job. As a result, not having contractor insurance will both increase the risk you expose yourself to, and decrease your job opportunities. 

Need help? Our team of expert brokers is available to help. We will assess the risks you face in your work, explain coverages and insurance terms, and find a contractor’s insurance policy that suits your unique needs. 

What Does Ontario Contractor Insurance Cover? 

In Ontario, contractor insurance is designed to cover many perils pertaining to both liability and damage to everything you need for your business. Some of the most common types are commercial general liability coverage, errors and omissions insurance, equipment breakdown insurance, tools and equipment insurance, commercial auto insurance, and many more. If you would like to know more about each aspect of contractor insurance, feel free to speak to your Morison Insurance broker. 

Commercial General Liability Coverage 

Commercial general liability insurance is here to protect you in instances where you are not directly at fault but are deemed legally responsible. For example, a photographer might place down some equipment, and a third party might trip over it, injuring themselves. This is a situation where the photographer could be held responsible if the third party’s bodily injury is serious enough.  

This coverage could also apply to times when you cause property damage or some other financial hardship to someone and are required to reimburse them. Commercial general liability insurance will cover legal expenses and other related costs on your behalf if you have it. Since almost every contractor handles equipment in some way, a situation similar to this could happen to nearly anyone. 

Errors And Omissions Insurance 

Errors and omissions insurance, also known as professional liability insurance, covers you in similar situations, although it is geared toward situations where the fault is with a more direct mistake. If, for example, an electrician overcharges a client’s power circuit, causing permanent damage, or a mechanic accidentally does irreparable damage to their customer’s vehicle, they could face charges. Errors and omissions insurance will cover the costs of going to court, such as paying a lawyer or taking time away from one’s business. 

Equipment Breakdown Insurance 

Depending on the type of work you do, you may have very expensive equipment that you work with. A mechanic who runs a full garage filled with thousands of dollars worth of equipment is at risk of having the equipment break down at no fault of their own. Equipment breakdown insurance covers any situation where such equipment breaks down suddenly if the person or company in charge is not at fault.  

Tools And Equipment Insurance 

While heavy equipment might seem like a bigger deal, almost all contractors require smaller, specialized tools that cost a pretty penny and are often very fragile. In addition to possible damage, these devices could easily end up in the hands of thieves. While you are likely doing everything reasonable to prevent the theft of tools, materials and equipment, there is still the chance that a thief catches you off-guard and gets away with something valuable. Tools and equipment insurance ensures that even if something expensive breaks or is stolen, you won’t need to pay out of pocket to replace it. 

Commercial Auto Insurance 

Commercial auto insurance, also known as fleet insurance, protects you from a wide range of financial hazards related to your company vehicle. This includes the possibility of the vehicle being damaged and you being held responsible for causing damage or injury to others or their possessions. Commercial auto insurance will cover legal fees, any reimbursement you need to pay to third parties after a collision, and repairs or replacement to the vehicle itself. It should be noted, as well, that a personal car insurance policy won’t cover it for commercial purposes, you will require specifically a commercial one. 

Business Interruption Insurance 

Whenever you run a business, there’s the potential that said business will get shut down for a brief time or need to temporarily relocate after its headquarters becomes unusable. If this happens, you must pay many costs to keep your business afloat when you might have lower or even no income. These costs could include rent on a building that currently can’t be used and the price of operating out of a temporary location. If this were to be the case, business interruption insurance can help cover these costs, keeping you afloat during what could be a very difficult time. 

Commercial Cyber Insurance 

Our world is becoming more and more digitized. This is great in many ways, as it makes things much more convenient for both you as a business owner and your customers. However, technology is susceptible to errors and to cyber criminals. Even if you know and understand the essential cybersecurity tips for businesses, it’s possible that someone with malicious intent could target your company with ransomware or find their way into confidential files and help themselves to the information inside. In such cases, commercial cyber insurance, also known as cyber liability insurance, can help pay off charges such as loss of income due to a shutdown, the cost of restoring your software, and damage done by attacks such as social engineering. 

Environmental Liability Coverage 

Environmental or pollution liability insurance is one of the more limited types of coverage, but for those who depend on it, it is vital. It’s possible that your business might create a lot of waste of some sort. If it does, you must protect yourself with environmental liability coverage to ensure you don’t need to pay claims such as clean-up costs, accusations of environmental damage, and more. 

Commercial Umbrella Insurance 

There are times when your existing coverage is not enough to cover potential financial losses, even if a claim is successful. There are others where there are holes in the existing coverage, allowing certain corner cases to be unprotected. In cases like this, commercial umbrella liability insurance can cover any costs that are either too great or too niche to be covered by your existing plan. 

What Does Contractor Insurance Not Cover? 

Contractor insurance does not cover every situation possible. There are times when even someone with proper insurance will not be able to get coverage for an incident. These include: 

• Times where the incident was a result of the policyholder acting maliciously. 
• Equipment that breaks due to poor maintenance or intention by the policyholder. 
• Times where a device no longer works due to wear and tear over time and breaks while reaching its approximate expected lifespan. 
• Anything stated explicitly in the policy as an exception. 

Please note that these are not the only times where an Ontario contractor insurance won’t protect someone fully. If you would like to know which situations you would be covered in or have hypothetical questions, it is best to speak with your Morison Insurance broker to find out more. 

Are Subcontractors Covered Under Contractor Insurance? 

A general contractor is advised to ensure subcontractors have their own contractor insurance. The main contractor (general contractor) often hires subcontractors to carry out specific tasks on a project. Subcontractors are usually experts in various trades. Electricians, drywall specialists, heating and air contractors, plumbers, and others are often subcontractors. 

As a general contractor, you must ensure that all subcontractors you work with have their own contractor insurance. All contractors should require a Certificate of Insurance from each subcontractor you use to verify that the subcontractor has commercial general liability insurance in place. It would help if you also asked to be included as an Additional Insured on their insurance policy for work you have subcontracted them to do. 

If you are a subcontractor, having Ontario contractor insurance for your own protection is equally important. Use a broker’s services to ensure you have the right protection.  

How Much Does It Cost For Contractor Insurance In Ontario? 

Contractor Insurance in Ontario does not have a set cost. This is because no two contractors are the same, even in the same industry. For example, two contractors wanting drywall insurance will still have different risks. This is because they will likely do business in different cities, serve different sets of clients (such as one handling commercial and the other handling residential), have different amounts of experience, use different equipment, have different claims histories and operate different vehicles. Here are some factors that can determine your Ontario contractor insurance quote: 

• Your location and area you serve. 
• The industry you are involved in and the risks associated with that industry. 
• Your claims history. 
• Your level of experience in your industry. 
• The type of coverage and coverage limits desired. 
• Whether or not you use a vehicle for commercial purposes. 

Please keep in mind that there are many other factors that insurance companies will consider, and two different insurance providers will almost certainly give two different contractor insurance quotes to the same person. Our team of licensed brokers is trained to help with contractor insurance. Our brokers get to know your business, help you assess your risks and answer any questions. Additionally, our team will contact several insurance companies to get you several contractor insurance quotes. Review the contractors insurance quotes you are offered and discuss the coverages with your broker before determining which policy best suits your needs. 

How Can I Lower My Contractor Insurance Quote? 

There are a handful of ways to lower your Ontario contractor insurance quote without sacrificing the level of coverage you receive. Most of these involve showing the insurance company that you understand the risk you are exposing yourself and them to and taking it seriously. The steps you can take include the following: 

• Increasing your deductible. 
• Spread workplace safety awareness and take steps to reduce the risk of accidents. 
• Avoid making claims on minor incidents to keep your claims history clean. 

Please note that these are not the only ways to lower your Ontario contractor insurance quote. If you would like to know more, it is best that you speak with your Morison Insurance broker. 

Where Can I Get A Contractor Insurance Quote 

You can get a contractor insurance quote from Morison Insurance. Morison Insurance is a family-owned, 5-star insurance brokerage that treats our clients like they are an extension of that family. We have been getting people in Ontario the insurance coverage they deserve for over 100 years. With us, you can get an Ontario contractor insurance policy or one of many other policies available by filling out the form below or by calling 1-800-463-8074 today. You’ll be glad you did.