Contractors Insurance in Ontario
Everything You Need to Know About Independent Contractors Insurance
Contracting businesses face more challenges and risks than other types of companies: you or your employees can suffer from unexpected job site injuries, commercial vehicle claims or damaged and stolen equipment. You will need a contractor’s insurance policy that offers you coverage for all of the unique aspects of your business operations.
Contracting businesses in Ontario face more challenges and risks than other types of companies: you or your employees can suffer from unexpected job site injuries, commercial vehicle claims or damaged and stolen equipment. You will need a contractor’s insurance policy that offers you coverage for all of the unique aspects of your business operations.
At James Campbell Insurance, our brokers are dedicated to offering your contracting or construction business an easy way to shop around for contractors insurance. Since we know that you can’t afford any setbacks due to unexpected events or problems, we can offer you the ability to find the right insurance policy so you can run your business without worrying if you have the right coverage in place .
Different industries often face different risks, so to understand what independent contractor insurance coverage is suitable for your requirements, our brokers can speak with you about the details of your work and business. We are always open to answer any questions you might have.
What is contractors insurance?
In short, contractors insurance in Ontario is a particular insurance policy designed to provide coverage for any general contractor or subcontractor. This specific type of policy will be suitable for any contractor working in the following fields:
- Construction;
- Electrical Contractor;
- Landscape Contractor;
- Plumbing Contractor;
- Painting Contractor;
- Carpentry;
- HVAC
If you own a business in Ontario in any of the industries mentioned above, then you will face certain risks that individuals in other fields will not. These risks can include tool or equipment damage, injuries on the job, unsatisfied customers or lawsuits if property damage occurs during a project.
What does contractors liability insurance cover?
Every construction enterprise or contractor does things differently, so that means insurance requirements will need to vary by service. This can depend on factors such as where your company is located, or what specific industry you work in. However, contractors insurance packages typically include the following common coverages:
Commercial General Liability
Commercial general liability (CGL) insurance helps cover legal expenses in the event your company is sued for any negligent acts which cause bodily injury or property damage. This is the most common and most important type of coverage for any contracting business. Some important terms to understand include:
- Bodily injury occurs if anyone is physically hurt due to negligent acts (or is being accused of negligent acts). This can happen either on your company’s property or somewhere else contracted services are taking place.
- Property damage refers to any physical damage to a third party’s property caused by negligent acts.
- Negligent acts are failures to exercise the appropriate level of care in specific situations.
You can still be sued even if your business wasn’t negligent. Your CGL insurance will cover your legal expenses either way. This can include:
- Your legal defence costs, including any witnesses and lawyers
- Judgment awards
- Settlements
- Medical payments
Your policy will outline exactly what is covered and how much coverage you need for each section.
Commercial Property
This is another type of coverage that is important for contracting business operators. If you own a business that rents, leases or owns a physical location then you should consider adding this to your policy.
Commercial property insurance helps to protect the physical property of your business. This includes, but is not limited to, your actual building and the structure of it, furniture, supplies and inventory or stock. Having this coverage can help with the costs associated with any repairs or replacements if your commercial property is damaged from an insured peril.
Equipment and Tools Insurance
Your tools and equipment are some of your company’s most important assets, so making sure they are protected under your insurance is critical. This coverage will help provide coverage to replace or repair lost or damaged equipment and tools, accessories or any other property within your care. Typically depending on the insurance company anything valued below $1500 will be considered a tool, and anything above that will be considered equipment. It is also important to understand your exposure to tools that are leaving the premises as a tool floater will be required to make sure coverage applies offsite.
Surety Bonds
For some jobs, you might be required by law or at request from your client to have proof of a surety bond before you are hired for a project. Surety bonds are a three-way contract between you, your client, and your insurance provider. It will protect the client from losses up to the limit of the bond that will occur if you fail to perform your obligations. Some common examples of surety bonds include the following:
Contract Bonds
These act as a guarantee to your client that you will fulfill your contract within the determined provisions.
Bid Bonds
Larger projects often call for tenders or bids. Bid bonds are used to ensure that the principal or company bidding on the job has been pre-qualified to bid on the project, and that they are bidding in good faith.
Performance Bond
A performance bond guarantees the actual performance of the contract in accordance with its specified terms and conditions, faulty work will be corrected and defective materials will be replaced for a period of one year after completion.
Licence Bonds
These can be required by the government depending on the circumstance in order to receive a permit that allows you to operate your business.
Choose James Campbell for Your Contractors Insurance
At James Campbell, we put you first. Our clients are our top priority and the backbone behind everything we do.
We can help provide you with protection from insuring your first car, your first home or business or even giving you protection during your retirement travels. Whatever you need coverage for, we’ve got your back. We will make sure that you are ready to live a life free of stress or worry so you can focus on life’s important moments each and every day.
James Campbell Insurance Brokers have been taking care of our members for over 40 years. This is why we are able to make insurance easy by offering you the right solutions at the right times. Our solutions are tailored to fit your individual needs, no matter what they may be.
