Why Do Contractors Need Insurance?

Contractors in the county of Canada tend to become content. They also begin taking things for granted over a period of time. If you’ve served Canadian residents for many years without any problems, there is a good chance that you’re going to feel pretty invulnerable. This is something that you need to avoid at all costs. You must understand that problems can still occur. Even if your workers are very careful, there is a chance that something is going to go wrong.

All contractors especially electricians, HVAC technicians, renovation contractors need to obtain a minimum of $2,000,000 contractors general liability insurance to practice in Ontario, Canada and maintain a valid contractors insurance policy. One of the mains concerns that business owners have has to do with the cost of contractors insurance. Cost in general should not be the only decision factor. Coverages are most important as when you get sued, its the limits of insurance on your policy that ultimately protect you and pay for the damages caused by you. Saying that, below you’ll find out why having a contractors cgl policy is required and how it can benefit your business.

Problems Occur When Least Expected

You’ve probably already realized that problems tend to happen when you least expect them. When you think everything is going your way, something terrible will happen. This is why you should never take a risk. You just never know when things are going to go wrong. This is why you should get commercial general liability insurance and keep it for the long run. Do not serve a single client, without having contractors insurance. If you do, there is a chance that it could bankrupt your company.

claim form after losses

Sometimes A Necessity

While you’re at it, you should understand that some provinces in the country of Canada actually require all contractors to obtain and maintain contractors liability insurance. In some provinces, it will be illegal for you to serve clients without having the appropriate policy and the correct amount of coverage. This is something that you need to be cautious about. Speak with a Canadian lawyer and learn about the laws in your area. Get the right amount of coverage, so you do not get hit with hefty fees and lawsuits.

contract requirements of insurance

Customers Expect It

Consumers in Canada expect their contractors to have a valid contractors insurance policy. In fact, there is a good chance that they’ll ask about it, before hiring your company. If your company doesn’t have an insurance policy, you’ll probably lose the job. Roofing contractors are one of the most common types of professionals that are always asked to show their proof of CGL insurance (Certificate of insurance) before owners allow them to do any work on their property. Think about it, one small mistake can cause the roof of the building to collapse and cause hundreds of thousands of damage. Customers today are aware and want to protect themselves ahead of time in the event a claim does arise. It is also worth nothing that canadian consumers are picky and they are absolutely not going to work with uninsured companies. Your customers want to be protected from start to finish. This is why you should maintain an appropriate contractors or construction insurance policy. If you want to satisfy your Canadian customers, you need the right contractors insurance. Fill out the ontario contractors insurance application form and get covered today.

contractor showing clients proof of insurance

Financial Loss Protection

Canadian companies are forced to shell out millions of dollars each year for lawsuits filed by customers. Some independent contractors are under the impression that they are protected from lawsuits, because they work solo or only employ a small number of workers. It truly does not matter how many employees you have, there is always the risk of an accident. Who is liable for damage caused by these accidents? The answer is you. As a business owner, you will be forced to cover the bodily injury and property damage related to these accidents.

Commercial general liability insurance will provide funds to pay for judgments or settlements associated with third-party lawsuits. Without this protection, contractors will be forced to pay out-of-pocket to cover the settlement or judgment. In most cases, independent contractors such as painters, that usually work on small jobs, do not have the cash on-hand, which means they will may be forced to sell their company to get the money. Bankruptcy is also a possibility.

broad form cgl insurance policy

Ready to take this next step? Speak to a broker that can help!

Other frequently asked questions before buying insurance:


Areas where we commonly provide insurance:





brampton city hall picture


ottawa city parliament