Contractors Insurance, Ontario
What is Contractors Insurance?
Contractors’ insurance in Ontario is a type of coverage that protects contractors, subcontractors, and contracting businesses from potential risks associated with their business. Whether it’s equipment breakdown, property damage, third-party bodily injury, or unintentional damage to someone else’s property, Contractors’ insurance has you covered! By protecting against unexpected incidents, this insurance helps contractors avoid financial losses, legal liabilities, and costly repairs, allowing contractors to focus on their work.
GET A QUOTEWhy Choose Affiliated Insurance for Your Contractors’ Insurance?
Over a Century of Experience
Affiliated Insurance has been proudly serving contractors and businesses in Ontario since 1903. We provide reliable, personalized coverage that protects against industry-specific risks, ensuring contractors receive the best protection for their businesses. With over a century of experience, we aim to provide expert guidance, competitive rates, and a simplified insurance process to help contractors secure the right coverage.
Independence and Client-Focused
As a 100% independent insurance brokerage, we work for you, not for insurance companies. If a claim goes wrong, we are your advocates, always making sure you get a fair settlement. As a local, family-owned business, we genuinely care for you. We’re not a call centre that thinks of you as another number. We aim to build long-term relationships with our clients by providing personalized service, expert advice, and reliable insurance solutions.
Personalized Insurance Solutions
We don’t believe in one-size-fits-all insurance solutions. Every contractor in Ontario has different business requirements and faces different risks. We take the time to listen and tailor your insurance policy based on your needs. Since we have access to a wide network of top insurance providers, we make sure to get you the most competitive rates without compromising on coverage. We also understand the stress you face when you file a claim, which is why we ensure a smooth hassle-free process to help you navigate claims efficiently
Always Here for You
We respect your time and know when you contact us, it’s usually important. That’s why we strive to answer every call promptly, ensuring you speak to a real person immediately. Whether you decide to contact us by phone, email, text, or in person, we will ensure that all your concerns are addressed efficiently. We also offer 24/7 access to your policy through our self-service online portal, which keeps you informed of changes such as new discounts, threats and insurance protections.
Do General Contractors Need Insurance Coverage in Ontario?
Yes, general contractors need insurance in Ontario because most clients and project owners require proof of insurance before agreeing to do business with you. Besides protecting your business, contractors’ insurance enhances your credibility and shows your clients that you’re reliable and responsible. We understand that building trust is essential to your success, and that’s why we offer comprehensive insurance solutions to meet clients’ requirements while protecting your business.
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What Insurance Should Contractors Have In Ontario?
Contractors’ insurance isn’t just a necessity, it’s a legal requirement in some cases in Ontario. While not legally mandated for all contractors, most clients will not work with your business unless you show a certificate of insurance.
Some of the common contractors’ insurance coverages available in Ontario include:
Commercial General Liability Insurance
Commercial general liability insurance in Ontario protects businesses from third-party liability claims of bodily injury or property damage caused by their business operations. This coverage is essential for contractors and businesses because it covers legal fees, medical expenses, and any settlements associated with third-party liability claims. For example, if you’re building a fence and accidentally cause damage to someone’s car, contractor liability insurance will cover the repair costs and any legal expenses associated with the incident.
Commercial Property Insurance
Owning a shop, a warehouse, or an office is good for your contracting business, but it comes with several risks that can cost you thousands of dollars. Incidents like fire, theft, vandalism, and natural disasters can cause significant damage to your property, resulting in costly repairs and business disruptions. Commercial property insurance in Ontario protects your contracting business by covering repair or replacement costs for damages by insured events.
Tools and Equipment Coverage
Your tools and equipment are an investment that needs protection. A sudden equipment breakdown or theft can disrupt your operations, leading to missed deadlines, which can cost you money and clients. Tools and equipment insurance helps you repair or replace your tools and equipment quickly, ensuring your projects stay on track. If you lease or rent any tools or equipment, this coverage will also extend to protect them whether they’re with you, in storage, or at a client’s location.
Builder’s Risk Insurance
This insurance policy, also known as construction liability insurance, protects buildings under construction from several risks, including fire, theft, lightning, and other natural disasters. It pays for repair or replacement costs for damaged materials, structures, and equipment, ensuring that unexpected incidents don’t cause major financial losses. Clients or project owners mostly carry this insurance coverage, but sometimes contractors are the ones required to carry it. It’s recommended to confirm with your client to determine who is responsible for obtaining this insurance policy.
Commercial Auto Insurance
If your contracting business uses any vehicles such as cars, vans, or trucks, you’re required by law to carry commercial auto insurance in Ontario for all the vehicles you have. This insurance policy protects your vehicles and drivers from accidents, liability claims, property damage, and medical expenses that result from collisions. It ensures that your business complies with the law in Ontario while remaining financially protected against unexpected events on the road. If you own more than one vehicle, we recommend getting fleet insurance in Ontario to insure all your vehicles under one policy to simplify the process and reduce costs.
Professional Liability Insurance for Contractors
Mistakes happen all the time, but a single error can cost you thousands of dollars in legal fees and lost business while also putting your reputation in jeopardy. Professional liability insurance in Ontario protects your contracting business from claims of professional errors and mistakes that result in financial loss, project delays, or legal disputes. This coverage, also known as errors and omissions insurance, pays for legal fees and settlements arising from claims of professional mistakes or failure to meet contractual obligations.
Business Interruption Insurance
If your business operations are interrupted due to a covered event, this type of contractors’ insurance helps compensate for lost income and supports you in resuming operations when you’re ready. For example, if your storage is robbed and you lose essential tools and equipment, this contractor insurance policy will support you in many ways. By covering lost income and ongoing expenses while you recover, this insurance reduces the financial strain on your business until you’re back on your feet.
Contact us today and get the best contractor insurance policy for your business!
Who Needs Contractor Insurance in Ontario?
All contractors in Ontario need contractor insurance. Whether you’re an independent contractor, subcontractor, or general contractor, having the right contractors’ insurance covers several risks that can lead to major financial losses.
Below are some professions that should have contractors’ insurance:
- Construction Contractors: to protect against property damage, construction site accidents, liability claims, and other risks associated with the construction industry.
- Subcontractors: to provide coverage for worksite injuries, equipment breakdowns, and liability claims.
- Electricians: to protect against faulty wiring claims, fires, and damages to your client’s property.
- Plumbers: to protect from water damage claims, installation errors, and other liability claims.
- HVAC Installers: to provide coverage for equipment breakdown, installation errors, and property damage.
- Roof and Tiles Builders: to protect from the risks associated with their outdoor work involving heights, heavy machinery, and potential damage to the business premises.
- Painters: to cover claims of third-party property damage, material spills, third-party bodily injury, and other risks associated with their work.
Ensure your contracting business is covered with the best business insurance—call us today!
GET A QUOTEBuilder’s Risk Policy: An Essential Insurance Coverage
Builder’s risk insurance is essential for contractors because it protects them from claims of damage to the construction site, materials, and equipment during the building process. These damages aren’t usually covered by other insurance policies, making this coverage crucial to protect against potential financial setbacks. It helps cover repair or replacement costs resulting from damage caused by an insured event, such as fire, theft, or vandalism. Moreover, many project owners require this coverage before approving contracts or loans.
Which Insurance Is Best for Contractors in Ontario?
Contractor liability insurance and risk builder’s insurance are the best insurance for contractors in Ontario. However, insurance requirements differ from one contractor to another because they depend on the specific risks contractors face in their daily jobs. With that in mind, it’s important to know that there are many essential insurance policies for any contractor. These policies include contractor liability insurance, risk builder’s insurance, tools and equipment insurance, and commercial auto insurance. These insurance policies ensure you’re never left financially vulnerable and that you’re always protected from unexpected risks.
Don’t leave your business unprotected—Get the best insurance for contractors today!
How Much Does Contractors’ Insurance Cost in Ontario?
The cost of contractor insurance in Ontario averages around $850 annually for the standard contractor liability insurance. However, it’s recommended that you opt for higher coverage limits based on your industry, business size, and specific risks to ensure comprehensive protection. Choosing higher coverage limits can increase your insurance premiums to as much as $5,000 per year depending on several factors such as your industry type, number of employees, risk factors, and claims history.
Although choosing more coverage can be costly, it’s essential to protect against unforeseen events that can leave you financially strained and disrupt your operations. At Affiliated Insurance, we make sure you get adequate contractors’ insurance coverage for your business at a competitive rate.
Contact us today to get cheap insurance quotes for your contracting business!
GET A QUOTEComprehensive Protection for Ontario Businesses
At Affiliated Insurance, we offer customized Business insurance in Ontario designed to protect businesses across Ontario. Our business solutions include:
What Factors Affect Your Contractors’ Insurance Premiums?
Insurance companies consider several factors when calculating your insurance premiums, including:
- Type of Work: High-risk industries such as roofing and demolition get higher premiums due to the increased chances of accidents and liability claims.
- Coverage Limits: Higher coverage limits provide enhanced protection for your contracting business, but it also means that you’ll be paying more for your insurance.
- Business Size: Larger businesses with more employees and high revenue usually get higher insurance rates.
- Claims History: A history of frequent claims won’t look good to insurers and they may place your business as high-risk, leading to higher insurance premiums.
- Location: Working in high-risk areas can increase your premiums due to the possible risks of equipment and tool theft, property damage, and job site accidents.
How to Get Cheaper Contractors’ Insurance in Ontario?
Contractors’ insurance is essential to protect your assets and reputation, and we understand how crucial it is to keep costs manageable while getting the comprehensive coverage you need. Follow these tips from our experts at Affiliated Insurance to lower your rates without compromising on coverage:
- Compare Quotes: Shopping around and comparing quotes from multiple insurance companies is an effective way to get lower insurance rates.
- Partner with an Insurance Broker: Partnering with an independent insurance brokerage like Affiliated Insurance can help you secure the best insurance rates with the top insurance providers.
- Keep a Clean Claim Record: Avoiding frequent claims can help you get lower rates. By following risk management protocols, you can reduce the likelihood of incidents that lead to claims.
- Bundle Insurance Policies: By combining insurance policies into one bundle, you can lower insurance costs, simplify your coverage, and ensure comprehensive protection.
- Pay Annually: Paying annually instead of monthly helps lowering insurance costs because many insurers offer discounts if you pay your premium upfront annually.
- Increase Deductibles: If you choose to pay higher deductibles, it can lower your insurance premiums. However, make sure you can pay this amount out-of-pocket in case of accidents.
Reach out to our brokers now and get the best deals for contractor’s insurance in Ontario!
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Our Service Areas Coverage
- Business Insurance Oakville
- Business Insurance Burlington
- Business Insurance Wasaga Beach
- Business Insurance Toronto
- Contractors Insurance Ontario
- Contractors Insurance Toronto
- Fleet Insurance Ontario
- Commercial Property Insurance Ontario
Contractors Insurance in Ontario – FAQs
Contractor general liability insurance protects contractors from financial losses caused by liability claims of third-party property damage, bodily injury, and other liability claims. Liability insurance is essential for covering legal fees, medical expenses, and other costs associated with liability claims.
You can ask the contractor to show you a Certificate of Insurance (COI) which includes their policy details and their insurance provider information. A reputable contractor should also provide their license details before starting any work.
A contractor’s insurance policy typically includes coverage for the primary contractor, but it does not automatically cover subcontractors. To avoid being held liable for subcontractors’ mistakes, you can either extend your insurance to cover them or ask your subcontractors to carry their own insurance.
Yes, builder’s risk is an essential insurance policy in Ontario because it protects buildings under construction from damage caused by fire, theft, vandalism, and weather-related events. This coverage ensures that contractors, property owners, and developers don’t face significant financial losses if unexpected incidents occur during the construction process.
On average, contractors in Ontario pay $850 annually for a $2 million general liability insurance policy. However, costs can vary depending on factors such as industry type, business size, coverage options and limits, and claims history.
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Get the right insurance for your contracting business today!