Reliable Contractors Insurance, Toronto

What Are the Coverage Options Available for Contractor Insurance in Toronto? 

A comprehensive contractor insurance policy package in Toronto would usually include: 

• Commercial General Liability Insurance 

Commercial general liability (CGL) insurance is one of the most important coverages for contractors, as it protects your business against third-party liability claims of property damage and bodily injury. It covers legal fees, medical expenses, and settlements if a client, subcontractor, or any third party is injured or their property is damaged because of your work. General liability insurance for contractors also helps save your reputation by ensuring claims are handled professionally. 

• Workers’ Compensation Insurance 

Workers’ compensation insurance isn’t just a key coverage for contractors; it’s also a legal requirement in Toronto, and carrying it shows both compliance and responsibility. This policy provides coverage for employees who are injured on the job site or while fulfilling their work duties. It allows them to receive many benefits, including medical care, rehabilitation services, and partial wage replacement while they recover.  

• Commercial Property Insurance 

If your contracting business owns or leases a property, like an office, warehouse, shop, or workshop, you’ll need commercial property insurance to protect your physical assets. This coverage includes protection for the structure of the property itself and the contents inside, including tools, equipment, and furniture. It helps cover repair or replacement costs if your property is damaged by fire, theft, vandalism, or certain natural disasters. 

• Builder’s Risk Insurance 

This specific type of business insurance for contractors is designed to protect buildings and structures under construction or renovation. It provides coverage for losses caused by fire, theft, vandalism, and certain weather-related events from the start of the project till it’s completed. Depending on your insurance provider, builder’s risk insurance can also extend to cover building materials and equipment on the site or while being transported to the job site. 

• Commercial Auto Insurance  

If your contracting business owns, uses, or leases any vehicles, you’re mandated by the law in Ontario to carry a minimum level of auto insurance coverage. Commercial auto insurance protects your business vehicles against risks like collisions, theft, vandalism, and third-party liability claims. Besides insuring company-owned vehicles, contractors should consider non-owned auto insurance to protect against accidents that happen when staff members use personal or rented vehicles for work. 

• Professional Liability Insurance 

PLI is another type of contractor liability insurance that focuses on claims of negligence, errors, and omissions. Professional liability insurance (PLI), also known as errors and omissions (E&O) insurance, is very important for contractors who provide consultation and design services in addition to physical work. If a client claims that your inadequate work or negligence caused them financial loss, this coverage will handle legal expenses, defence costs, and compensation to ensure that you’re financially protected. 

• Commercial Umbrella Insurance 

If your contracting business faces a liability claim that exceeds the limits of your existing liability insurance policy, commercial umbrella insurance steps in to provide additional protection. It adds another layer of coverage to policies like general liability insurance and commercial auto insurance to bridge the gap when claim costs exceed your standard limits. This coverage is important for contractors because when working on large projects, the potential for severe accidents and expenses is very high. 

It’s important to note that commercial umbrella insurance doesn’t extend to your professional liability coverage. If you need enhanced protection for your professional liability insurance, you can increase your policy limits. 

• Pollution Liability Insurance 

Any construction project can create environmental hazards, such as fuel spills, chemical leaks, or dust and debris affecting the surrounding community. Pollution liability insurance helps contractors handle pollution liability claims by covering cleanup costs, legal defence costs, and regulatory fines. Without this protection, contractors could find themselves paying out-of-pocket for expensive cleanup efforts or even lawsuits. 

• Inland Marine Insurance 

Contractors always need to move tools, equipment, and materials from one job site to another, and from warehouses and suppliers to active projects. Inland marine insurance protects these assets while they’re being transported by covering losses caused by theft, accidents, fire, and other covered events.