Contractor Insurance2020-01-07T17:00:02-05:00

Contractor Insurance

Individual contractors, construction companies and sub-contractors should consider Contractor Insurance.
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Professional Contractor Insurance

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. Individual contractors, companies, and sub-contractors should consider getting insurance to protect their business, their employees, and their equipment.

Having contractor insurance is not only a smart business practice but is many times mandatory in order 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, traveling to different locations, accessing the 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 ones are construction and renovation contractors for both 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 claims of property damage or personal injury. Also, your Tools and Equipment policy, which usually covers tools and equipment that are lost or stolen on your site. 

And optionally, you can include an Installation floater policy: This covers materials that are 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 trips over some materials that you left behind at the site and 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, how much does a contractor policy cost?

The short answer is: it depends. The cost of contractor’s insurance varies according to factors such as the specific trade you are in, the number of years you have been in the 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 if you need to add a specific coverage, the cost will likely increase.

Now, how do I get a quote?

This is the easiest part. Simply head over to, click on get a quote, and in a matter of minutes, you’ll receive your contractor’s insurance quote. Get started today!

What is Contractor Insurance?

Insurance for contractors (Contractors Insurance) is designed to protect against the specific risks associated with contracting trades, such as third-party property damage and equipment theft.

Mistakes can happen and disrupt your business in a matter of minutes. We know what makes your business unique, leave it to us to find the best fit for you.

Contractor insurance coverage

What does Contractor Insurance cover?

Normally a contractors insurance covers the following:

  • Tools, machinery and equipment (theft and damage)
  • Damage to 3rd party property
  • Injuries caused to 3rd parties
contractor insurance requirements

Who needs Contractor Insurance?

Any of the construction trades are specially subject to risk.

In general terms, these are most common trades that require insurance:

  • Commercial Construction and Renovation
  • Residential Construction and Renovation
  • Carpentry
  • Door and Window Installation
  • Drywall
  • Electrical
  • Excavation
  • Fence Construction
  • Heating and Air Conditioning
contractor insurance costs

What is the cost of Contractor Insurance?

One of the main concerns for contractors, when it comes to obtaining general liability insurance is the cost. The cost of a contractor’s insurance policy varies according to factors such as:

  • Level of experience in the trade
  • Revenue
  • Number of employees if any

Generally speaking, a contractors insurance starts at around $400 per year and can cover up to $1,000,000 in liability.

Get a free contractor insurance quote right here.

Getting insured is quick and easy!

If Contractor Insurance is what you need, request a free quote now!

Which professions need Contractor Insurance?

Regardless of the contracting services you provide, Contractor Insurance is critical to protect you and your business. Some of our clients include:

  • Alterations, renovations or repairs

  • Appliance repair

  • Antenna and satellite installation

  • Appliance repair

  • Cable installers

  • Carpentry

  • Ceiling installations/renovations

  • Chimney cleaning

  • Cleaners

  • Doors, windows, siding, awnings

  • Drywalling, plastering and lathing

  • Decks and fencing

  • Eavetroughs and downspouts

  • Electricians

  • Excavation

  • Floor covering installations/renovations

  • Glass (Glazier) Installation

  • Heating equipments and combined air conditioning (HVAC)

  • Interior decorator

  • Landscaping

  • Lawn Sprinkler

  • Locksmiths

  • Masonry (e.g. bricks, stone, marble)

  • Painters

  • Plumbers

  • Road construction

  • Roofing

  • Sheet metal

  • Sign installation

  • Stucco

  • Swimming pool

  • Solar energy contractors

  • Tile work

  • Tree removal, trimming and pruning

  • Window cleaning

Common Scenarios where Contractor Insurance is useful

Contractor Injury Insurance

A client visits your site to inspect the work and injures themselves badly — they want to sue.

Contractor Insurance Liability

While excavating on the clients property, you accidentally burst a pipe causing flooding in the basement.

Contractor Tools Insurance

You leave your tools and equipment at the client’s premise overnight and the next day you discover the tools are gone.

Frequently Asked Questions about Contractor Insurance

Is Contractor Insurance mandatory for contractors and subcontractors before signing project contracts?2019-10-18T11:45:54-04:00

No, having Contractors Insurance is not mandatory, but here are some reasons why you should:

  • There are many risks involved in a contracting project, e.g., on-site injury, equipment, and property damage, any of which could lead to financial loss if a client files a claim against you.
  • For risk-management purposes, project managers and planners will often ask for proof of insurance before making a hiring decision. Having Contractor Insurance can be the difference between whether or not you secure a contract.


Do contractors need Professional Liability coverage in their insurance policy?2019-10-23T11:54:07-04:00

Contractors do not require Professional Liability Insurance. However, if you offer advice as part of your service, consider adding it to your policy to protect against claims alleging you gave incorrect information or failed to deliver a service as promised.

If you’re still not sure if Professional Liability Insurance is something you need, ask your broker about what types of coverage make the most sense for your business.

Are subcontractors covered by the contractor’s Liability Insurance?2019-10-18T11:38:39-04:00

Contractor Insurance provides coverage for full-time employees of a business. This policy does not typically include subcontractors; however, if needed, they can be added. Regardless, it is important to ensure you are meeting all insurance requirements in a contract.

Important note for contractors, your policy coverage limit applies to all employees of your business, not each employee. One option to accommodate all of your employees is to increase your limit. However, hiring subcontractors that carry their own liability insurance ensures all parties have adequate coverage.

For subcontractors, consider purchasing liability insurance to ensure you always have coverage, even when an employer can’t cover you. Having liability insurance will also allow you to work on multiple sites.

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