Builder’s Risk Insurance Ontario

Builder’s Risk Insurance Ontario

Protect your customer’s property and your construction business with affordable builder’s risk insurance.

Trusted by over 350,000 Canadian small business owners!

Save up to 35% on your insurance

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Trusted by over 350,000 Canadian small business owners!
Save up to 35% on your insurance
Get the best insurance quote in a few clicks!
Get a Free Quote
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What is builder’s risk insurance in Ontario?

Builder’s risk insurance in Ontario is a policy that protects properties under construction or renovation.

Often called course of construction insurance, builder’s risk insurance is essential coverage for any active job site. It’s designed to protect contractors, subcontractors, and property owners during new builds, renovations, or remodelling projects.

This policy safeguards tools, materials, equipment, and the structure itself against unexpected setbacks like fire, theft, vandalism, or weather damage while work is in progress.

From the first nail to the final inspection, builder’s risk insurance helps keep your investment in a building project, your crew, and project stakeholders covered when it matters most.

A builder’s risk insurance policy in Ontario is designed to cover a building, construction materials on-site, and liability in the event of physical loss or damage due to an insured event, such as fire, theft, or vandalism. 

Water damage is covered up to a specified limit. Overland flood and sewer backup risks can be covered at an additional cost.

Among the perils (or risks) builder’s risk insurance covers are:

  • Physical damage to a building caused by fire, smoke, explosions, extreme weather (lightning, wind, hail, snow), natural disasters, and water
  • Theft of and vandalism to tools, equipment, and building materials at the job site
  • Damage to temporary structures, scaffolding, and infrastructure at the job site
  • Debris removal and cleanup expenses following an insurable loss
  • Damage to the property’s landscaping

The cost of a builder’s risk insurance policy in Ontario is determined by an insurance company, and varies by insurer. The premium is based on the value of the structure or building upon the project’s completion, excluding the land on which the structure is built or renovated.

Insurers also consider the following factors when calculating the cost of a premium:

 

  • The type and location of a project
  • The value of materials
  • The project’s total hard costs (materials, supplies, labour) and soft costs (developer costs, accounting, real estate taxes)
  • Previous insurance claims

Builder’s risk insurance covers damages and losses that occur during a building or renovation project. It does not cover incidents or damages that occur before a project begins, or after the project is completed.

Other potential perils or risks that is not covered by builder’s risk insurance includes:

  • Government-related activities and war
  • Faulty design, planning, substandard work, or materials
  • Contractual-related penalties or fines
  • Mechanical or equipment malfunctions due to wear and tear
  • Allegations of professional negligence against a contractor or subcontractor
  • Internal or employee-related theft
  • Overland floods or earthquakes

Builder’s risk insurance is necessary for any type of major construction project, including new home builds, commercial or industrial construction projects, and renovations to existing buildings and homes.

This type of coverage may also be required in your municipality or region to comply with local or regional bylaws and building regulations.

Most commercial property insurance and homeowner insurance policies don’t cover damages and losses to properties that are under construction.

Builder’s risk insurance in Ontario should be purchased by a property or building owner, or a general contractor if they own the building.

It’s highly recommended coverage to help pay for unexpected damages and losses that occur during construction.

It’s recommended for all parties involved in a building or renovation project to agree upon who is responsible for purchasing a builder’s risk insurance policy before a project begins.

Getting insured is quick and easy!

Complete our 5-minute online application for a free builders risk insurance Ontario quote.

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Claims Examples

Coverage

Problem: Thieves steal copper piping and electrical wiring from a job site overnight.

Outcome: Builder’s risk insurance may cover the cost of the stolen materials to help avoid project delays.

Coverage

Problem: A sudden electrical short ignites a fire damaging framing and insulation inside a partially built home.

Outcome: Builder’s risk insurance may cover the cleanup and materials replacement costs and repairs to the home.

Coverage

Problem: A scaffolding collapses due to high winds, damaging a portion of a building’s exterior siding.

Outcome: Builder’s risk insurance may cover repairing the damaged siding on the building and the scaffold.

Frequently asked questions

What deductibles does a builder’s risk insurance policy have?

A deductible is the amount of money a policyholder must pay upfront when filing an insurance claim before an insurer pays the claim. The amount of a deductible can vary and you can set how much a deductible is. Generally, the higher the deductible, the lower the premium and vice versa.

Is builder’s risk insurance required in the province of Ontario?

In general, no. However, financial institutions and project stakeholders may require it. It could also be a requirement to comply with municipal or regional bylaws governing construction and renovation projects.

What happens if there’s a project delay because of a covered loss?

Standard builder’s risk policies do not cover financial losses due to project delays, even if caused by an insurable loss. You may need to include business interruption insurance in the policy. Speak to a Zensurance broker for more information.

Why Choose Zensurance?

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a convenient and affordable way to buy business insurance online.

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Purchase your insurance anytime, anywhere, with our easy-to-use online platform.

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Ready to Start? Let’s Get a Quote!

Get the comprehensive, low-cost builder’s risk insurance policy you need for your next construction or renovation project in Ontario before it starts.

Fill out our online application for a free quote in less than five minutes.

Let our team of knowledgeable, dedicated insurance brokers shop our partner network of over 50 insurers to get the coverage you require, customize it to suit your project and budget, and issue policy documents and a certificate of insurance in 48 hours or less.

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