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Should You Invest in Contractors Insurance in Ontario?

Construction team working on plans.

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

  1. Being your own boss,
  2. Making your own hours, and
  3. 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!

You’ll learn

  • 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:

  • Plumbing
  • Construction
  • Landscaping
  • Window/Door Installers
  • Photographers
  • Cleaning (Residential, commercial, and industrial)
  • Carpentry
  • Electrical
  • Architects
  • Accountants
  • Engineers
  • Handyman
  • Designers
  • Physicians
  • Legal Consultants
  • Painting (Residential, commercial, and industrial)
  • Snow plowing
  • Roofing
  • Marketing Consultants
  • HVAC
  • Extermination
  • 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!

Add-On Coverages:

  • Tool Floaters
  • Equipment Floaters
  • Installation Floaters
  • Builders Risk
  • Pollution
  • 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.

Call our Belleville office at 613-966-5740 or our Napanee office at 613-354-2555.

We also offer FREE contractor insurance quotes!

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