What Does Contractor’s Insurance Cover?

Do you run a contracting business in the country of Canada? If the answer is yes, you must understand that you’re facing plenty of risks. Each time you work with a client, there is a good chance that something bad could go wrong. This is why it is pertinent to protect yourself and your company. This is where contractor’s insurance will prove to be immensely beneficial.

This type of contractors commercial general liability insurance is designed to protect your company in the event that something goes wrong on the job site. There are other additional coverages that contractors can purchase such as contractors health insurance which can provide even further protection. Opting for those additional coverages is entirely up to the contractors as only he or she can determines their needs.

Below, you will learn more about the protection provided by a contractors insurance policy.

You’re Sued

Construction insurance is designed to protect your company in the event that you’re sued. However, you should understand that it will not protect your company, if it is sued by an employee. Instead, this type of insurance only protects your company when you’re sued by someone other than your employees. Your specific insurance policy can vary, but there are some specific events that will be covered by commercial general liability insurance.

Bodily Injury

You just never know when someone is going to be injured on the job site. Workers’ compensation insurance is designed to protect your workers. If a worker is injured on the job site, your insurance will cover the costs. It’ll also reimburse the worker while they’re away from work. General insurance for contractors will protect other bodily injuries. For instance, let’s say a stucco contractor is performing a job and suddenly a customer is injured on your job site, your construction insurance will take effect. If the client sues your company for medical costs, this type of insurance will help to ensure that you do not have to pay out.

Slips And Falls

Slips and falls in Canada are far more common that you could ever imagine. If the victim is elderly or the fall is severe, there is a chance that the fall could result in death. If this happens on your company’s property, you can pretty much guarantee that you’re going to be sued. This could result in your company being required to pay out millions and millions of dollars. By looking for a good insurance quote for contractors and getting covered, you will be able to protect yourself from such situations.

Slips and falls are indeed covered by commercial general liability insurance.

Product Liability

Some companies, such as tile and terrazzo contractors, may sell a product to the customer. There is a possibility that you manufacture some type of device and sell it to the general public in Canada. If this is the case, you must understand that your product could eventually be seen as a hazard or a loss to the person buying. The material you provided the client could be damaged or defected. Or, an elderly individual could step on your product and become seriously injured. The good news is that general liability insurance will actually protect your company from product liability. If you sell products to the public, you owe it to yourself and your workers to obtain a contractors insurance policy!

Property Damage

Most people are only concerned about their health. This is definitely important, but you should not ignore the client’s property. When you enter someone’s home as an electrical worker, plumbing contractor, or roofer, you must understand that there is a chance for problems. Your workers could drop something heavy and it could cause serious damage to the client’s home. If you’re not covered by insurance, you’ll be required to pay out of pocket to rectify the problem immediately. You do not want to be left on the hook. This is yet another reason that you should have contractor’s insurance. This type of insurance will protect your company from property damage.

Truly, contractors liability insurance protects the contractor from a wealth of problems. With this in mind, every contractor in Canada should get covered as soon as possible. Apply for contractors liability insurance coverage today.

Other frequently asked questions before buying insurance:
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• What is contractors equipment insurance?
• Why do us contractors need insurance?
• I am an independent contractor, do I still need insurance?
• Are subcontractors I hire covered under my contractor’s CGL insurance policy?
• I drive a truck, van, or other vehicle for work – How is that insured?
• What is the process to get a contractor insurance policy for my business?
• What options do I have for health insurance as an independent contractor?
• How much does contractors commercial general liability insurance cost?
• How do I become an approved contractor with an insurance company for work?

Areas where we commonly provide insurance:
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