Mackay Insurance Blog
Should You Invest in Contractors Insurance in Ontario?
Thinking of starting your own contracting or trades business? Read this article first!
Becoming a contractor comes with incredible perks, like
- Being your own boss,
- Making your own hours, and
- Getting paid to do a hobby you (hopefully) enjoy!
But with its perks come many potential downsides as well.
You can count on your life as a contractor being predictably unpredictable.
No day is the same as the day before, just as no project is the same as the last. At each job site, you experience new environments and challenges.
It’s up to you to protect yourself, your team and your clients in light of these uncertain job sites.
If you don’t, it could mean the end of your livelihood.
That’s what this article is all about - contractor insurance!
- Whether this coverage is legally required,
- What coverage you should invest in, and
- The coverage you don’t need for your field, etc.
Let’s get started!
Pssst… we also offer FREE contractor quotes!
What Is Contractors Insurance?
First, let’s break down what contractor insurance really is.
Contractor insurance protects your livelihood from professional liability and property damage.
You may think this coverage only applies to certain trade jobs, like electricians and roofers. But it actually applies to numerous contractor positions!
Types of Contractors We Ensure:
- Window/Door Installers
- Cleaning (Residential, commercial, and industrial)
- Legal Consultants
- Painting (Residential, commercial, and industrial)
- Snow plowing
- Marketing Consultants
- Personal Chefs
- Air duct cleaning
As you can see, the list is endless!
While some of these jobs are statistically more dangerous than others, all come with unique risks.
Whether you work independently or have a team, it’s your responsibility to meet these risks with ample coverage.
Is Contractors Insurance Legally Required In Ontario?
All businesses in Ontario must carry commercial general liability insurance (CGL) - it's the law.
We’ll get into what this basic coverage entails in the next section.
This basic coverage becomes the foundation for your contractor’s insurance policy. All other inclusions become add-ons.
What Does a Contractor’s Insurance Policy Cover?
So, what’s actually included in your contractor’s insurance policy?
In its most basic form (CGL), this policy includes legal and financial coverage in the case of,
a) Personal injury and/or
b) Property damage claims.
It’s also important to note that these coverages only apply to third-party persons.
At this point, you’ll need to decide whether further coverage is beneficial for your business.
We’ve listed some add-on options coverages below!
- Tool Floaters
- Equipment Floaters
- Installation Floaters
- Builders Risk
- Performance Bonds
- Contractors Surety Bonds
Not sure which add-ons your business should invest in? Ask your Mackay Insurance broker!
Coverage For Independent Contractors
Are you planning on running a contracting business by yourself?
First of all, congratulations on this incredible business venture!
Starting and running a business as a one-person show is a huge undertaking. There are probably countless areas within your business that you’ll work in - from admin to providing your service(s).
Our team wants to help take a load off your plate!
We’ll work with you to design a contractor insurance policy that fits your unique needs. We don’t want you paying extra for unnecessary coverage.
Working with our brokers ensures you get the best coverage at the best price!
Other policies to consider when starting out on your own include:
Home-Based Business Insurance
If you plan to run a home-based business insurance, you’ll need to consider this coverage. Even if you only use your home for client appointments or equipment storage, it’s imperative!
This coverage protects against:
- Equipment loss/damage
- Inventory loss/damage
- Property damage
- Customer lawsuits
- Liability claims, etc.
Commercial Vehicle Insurance
It’s also important to look into adding commercial vehicle insurance to your policy.
All Ontario vehicles must have insurance. But even if it wasn’t mandatory, accidents are bound to happen! There’s always a risk, whether at the job site, on the road or on your own property.
3 Reasons To Invest in Customized Contractors Insurance
While you can’t predict what will happen daily, you can help control the outcome.
We’ve listed five top reasons our team recommends investing in a contractor policy.
1. Protection for things you can’t control.
Contractor insurance provides financial and legal coverage for situations you can’t control.
Many contracting jobs are dangerous. From sharp tools to precarious installations, there are countless opportunities for injury.
In fact, a recent study found construction one of Canada's most dangerous job industries!
Other dangerous contracting jobs could include roofing, electrical and demolition. If you asked contractors about these jobs, they’d say danger comes with the territory.
Each morning, they wake up and walk into a dangerous workplace environment. They pack all their knowledge of health & safety, as well as their safety equipment. But once they start work, they’re at the mercy of their job site, tools, coworkers, etc.
If an accident happens, the right coverage could save them thousands!
2. Affordable peace of mind.
If you ask us, peace of mind is priceless. Ensuring the safety of yourself, your employees, and your clients is a top priority.
At Mackay, we ensure your coverage protects you as thoroughly as possible. But we also don’t want you breaking the bank!
We work directly with you to ensure your coverage plan meets your unique industry needs. So you can rest assured that your livelihood has thorough and affordable coverage.
3. Established trust between yourself and your client(s).
Investing in contractor insurance can also build trust between yourself and your clients.
As we just mentioned, peace of mind is priceless. People like to know that they’re covered in case of an unpredictable and/or unfortunate event. It increases their trust in you, your team and your work!
Start Protecting Your Livelihood Today
As a contractor, you have enough to worry about. Let our professional brokers take some of the weight off!
At Mackay Insurance, we promise to find you the best coverage at the most affordable rate.
We also offer FREE contractor insurance quotes!
Contractor Insurance Quotes For a Safer Job Site
Your business is your livelihood. Your passion! And it’s up to you to ensure it’s safe and protected.
As a contractor, you have the incredible opportunity to work in a wide variety of settings. To work with and for many different people. And to experience new challenges daily.
It’s exciting yet also demanding. And the results are always worth it in the end. That’s the thrill of working as a contractor!
But without the right coverage, these exciting challenges can quickly become your greatest risk. Or even your downfall!
Learn more about contractor insurance as well as how to get free contractor insurance quotes below.
What Is Contractor Insurance?
A day in the life of a contractor is never the same as the last. There’s always something new to learn. And their “office” is typically on the go. And while it’s exciting, we also mentioned how risky it can be.
Construction and maintenance work is actually considered one of the most dangerous professions. That includes homebuilders, ironworkers, roofers etc.
These jobs involve more physical labour, heavy-duty machinery/equipment and dangerous working conditions.
Common Contractor Professions:
- General Contractors
- Handyman Services
- Excavating Companies
- Roofing Contractors
- Masonry Contractors
- Painting Contractors
- Drywall & Siding Contractors
- HVAC Companies
All these professions involve at least one element of risk. Most involve more than one.
For example, electricians face several dangers at a job site. This includes electrical shock, burns, falls, toxic substance exposure or personal injury.
And that’s just while they’re on the job site!
Other risks associated with contract work include:
- Damage to third-party property,
- Completed work liability and
- Reputation harm.
That’s where contractor insurance comes in!
Contractor insurance protects contractors, subcontractors and contracting companies against,
- Liabilities and
Contractor insurance includes the four areas mentioned above. That is bodily injury, completed work, reputation harm and third-party property damage.
On top of these coverages are optional add-ons, including:
- Installation Floaters
- Builder’s Risk Coverage
- Tool Floaters
- Pollution Insurance
- Performance Bonds
- Contractor’s Surety Bonds
- Cyber Security
- Fleet Coverage
Your Mackay Insurance broker can help ensure you have the best coverage for your needs. Ask about our contractor insurance quotes to get started!
Why Should You Invest in Contractor Insurance?
There are many reasons to invest in a contractor insurance policy. Some air on the side of caution, while others are legally required.
In Ontario, it’s mandatory for contractors to,
a) Have commercial general liability insurance and to
b) Show a valid insurance certificate.
This insurance protects your business and yourself from property damage or injury claims.
A contractor’s job involves many moving parts. Ranging from people to equipment, machinery, vehicles, tools etc.
It’s no wonder a contractor’s job site is so chaotic!
And when there’s that much chaos happening, accidents are bound to happen.
When those accidents do happen, ensuring you have the right coverage can save your livelihood.
Ask your Mackay Insurance broker about our free contractor insurance quotes today! We ensure you have all the mandatory coverages in place. We can also discuss further recommendations to help protect your business.
What Does Your Contractor Insurance Policy Cover?
Your contractor insurance policy covers four specific areas. That includes injuries, damaged property, completed work and reputation harm.
These coverages protect you, the contractor, and the client.
Let’s discover what each of these coverages entails below!
Damage to Third-Party Property
Your contractor liability insurance covers accidental damages to third-party property. This could be to the property, a nearby property or something within the property.
Your insurance covers the legal fees associated with this damage. That includes repair and replacement costs.
An HVAC contractor accidentally damaged your walls while carrying equipment into your home. Their liability insurance covers the damages caused by this mishap.
We’ve already mentioned how dangerous contract work can be. Whether it be the tools used, the machinery or the work environment, a day in the life of a contractor is full of risk.
What happens if your work causes bodily injury to a third-party individual? That could be the mailman, the homeowner or even the neighbour.
It’s up to you to have the right insurance coverage to protect yourself, the business and them.
What if a renovator dropped a tool from the roof and it ends up injuring a third-party individual? Their liability insurance covers the legal or medical fees associated with this accident.
The neat thing about contractor insurance is that it doesn’t end when the contractor leaves the job site. Their insurance continues protecting them even after they’ve finished!
An electrician improperly installed new electrical wiring. That wire then leads to a house fire. In this situation, their insurance covers the legal, medical and repair/replacement costs of this house fire..
This is one of the most valuable coverages.
Reputation harm coverage protects against slander, libel, copyright infringement, privacy violations etc.
An example of this would be if a contractor got sued for copyright infringement. Their liability insurance would cover the legal costs associated with this scenario.
There are many other coverages not included in basic contractor liability insurance. We’ve listed a more comprehensive list of extra coverages above.
These extra coverages provide specific protection for specific businesses but are not required.
One example of added coverage is worker’s compensation insurance. This covers medical costs, lost wages, disability and death benefits etc.
Get Free Contractor Insurance Quotes With Your Mackay Broker!
We also offer FREE contractor insurance quotes online!
If you’re a contractor, we don’t have to tell you how chaotic a construction site can be. With so many hands on deck (both literally and figuratively), it can be next to impossible to track down your tools from one minute to the next!
A job site is full of other contractors too - including plumbers, builders, electricians, painters, HVAC technicians, excavators etc. The list goes on! Besides the other contractors, there’s snoopy neighbors and passersby to think about too.
It’s not something contractors normally think about until after it’s too late, but contractor insurance and contractor tool insurance are becoming more and more necessary. Especially now that the housing demand is so high and the home-building sector is so backed up. At Mackay Insurance in Quinte, Ontario, we’ve seen this first hand! The Quinte housing market has gone through some rapid changes since the pandemic hit and cost of housing in the Bay of Quinte area is still above average.
On top of this, homeowners have been working on home improvement projects since the start of the pandemic when everyone was forced indoors. Whether the purpose for renovations was to renovate for resale or renovate to improve living space, a large number of homeowners took the stay-at-home orders as an excuse to start those projects (we just won’t talk about those skyrocketing lumber prices in the process!).
Whether you’re building a backyard deck, a fence for your new pandemic puppy, or a house, our team of contractor insurance experts recommend that you protect your contracting tools with the right coverage.
Keep reading for more information on options for Contractor Tool Insurance in Belleville, Ontario. And how Mackay Insurance can help you find the best coverage for your insurance needs.
What Is Contractor Tool Insurance And Why Do You Need It?
As a contractor, you are required by Ontario Law to obtain a minimum contractor’s general liability insurance. You are also to hold a valid contractor’s insurance policy in order to legally continue with your trade.
This general liability, however, does not include a thorough coverage for your contracting tools - meaning your livelihood is still at risk!
Here from Bruce Mackay, owner and president of Mackay Insurance in Belleville, as he explains the importance of Contractor Tool Insurance:
At Mackay Insurance in Quinte, contractor tool insurance means more than just protecting your toolset, it means protecting your business, your livelihood, your family and your passion.
What Does Contractor Tool Insurance Cover?
- Replacement Costs
- Rental Expenses
- Installation Floater and more!
Contractor Tool Insurance and Equipment Insurance protects your business tools in the case of loss, damage, necessary repairs or theft.
What Types Of Contractor Tools and Equipment Should Be Insured?
- Power Tools
- Hand Tools
- Air Compressors
- Scaffolding etc.
The difference between Contractor Tools and Contractor Equipment:
Contractor Tools are items costing $1,000 or less. Examples would be power tools or sawhorses.
Contractor Equipment are items costing more than $1,000. Examples would be backhoes or generators.
Who Needs Contractor Insurance?
If you own a contracting business that relies on you having the proper tools to do the job, then you should be investing in the proper protection in order to keep your business running smoothly. Your contractor tool insurance can help keep your doors open during unforeseen circumstances - ie. maintenance, financial loss, damaged equipment or theft.
Although extra contractor tool insurance (on top of general liability insurance) isn’t required by law, it is highly recommended by the trade. Why? Because accidents happen. Theft is not uncommon. And your livelihood matters.
If you work for or run one of the following contracting-based businesses, consider protecting your investment and your assets in order to safeguard your business’s reputation, operation and success in the industry!
- HVAC Technicians
- General COntractors Roofers
- Flooring COntractors
- Plumbers etc.
Contractor’s Tool Insurance Package With Mackay Insurance
When your livelihood depends on your business not only staying afloat, but maintaining stability and security, obtaining the right commercial insurance coverage is the necessary next step! We work with local businesses, both large and small, providing them with the protection and security they need to protect their livelihood.
Mackay Insurance offers a standalone product called Contractor Tool Insurance Package. This product provides the coverage you need to protect your equipment and operate your business well, regardless of potential and unpredictable circumstances.
Are you looking for Contractor Tool Insurance in Belleville, Ontario? Contact our Mackay Insurance Brokers today and we’ll find you the best coverage possible for your specific needs and budget.