Hi, my name is Matt, and I’m a business insurance broker specialized in Contractor Insurance here at Zensurance.
Today I’d like to speak to you about Contractor Insurance for Canadians. Independent contractors, companies, and sub-contractors should consider getting insurance to protect their business, employees, and equipment.
Having contractor insurance is a smart business practice and is often mandatory to perform jobs where the client requests proof of insurance.
So what exactly is Contractor Insurance?
Contractor insurance is also known as Contractor Liability Insurance or General Contractor Insurance. It’s a package specially designed for risks associated with construction trades in Canada. These risks can include working with hazardous materials and tools, travelling to different locations, accessing private property, and potentially causing injuries to 3rd parties.
Now, let’s look at which trades need Contractor Insurance. The answer is all of them! Some of the most common are construction and renovation contractors for commercial and residential projects, carpenters, electricians, HVAC installers, roofers, and landscapers.
So, what types of insurance policies do contractors need?
Here are some common coverages that can make up your policy—Commercial General Liability, which provides basic coverage against property damage or personal injury claims. Also, your Tools and Equipment policy usually covers tools and equipment lost or stolen on your site.
And optionally, you can include an Installation floater policy: This covers materials used for the final project that may be damaged while being installed. For example, a window that brakes while it is being installed.
Additional coverage for specific needs can always be added to your basic policy. You should speak to your commercial insurance broker at Zensurance for more options.
Some common scenarios where contract insurance can be useful are:
- A homeowner trip over some materials you left behind at the site injures themselves badly, and decides to sue you.
- Or, for example, you are performing a job, and some expensive tools that you left overnight at the site are stolen.
Now, of course, the big question is, how much does a contractor policy cost?
The short answer is: it depends. The cost of contractors’ insurance varies according to factors such as the specific trade you are in, the number of years you have been in business, and the revenue for the past year. On average, the most basic contractor’s insurance starts at around $500 per year and can cover up to $5,000,000 in liability. Of course, as more coverage is needed or adding a specific coverage, the cost will likely increase.
Now, how do I get a quote?
This is the easiest part. Simply head over to www.zensurance.com, click on get a quote, and in a matter of minutes, you’ll receive your contractor’s insurance quote. Get started today!