When you hear the term insurance, you probably immediately form the conception that you’re being protected. The real questions revolve around what precisely is being protected and how much it is being protected. As a contractor, you have many responsibilities to juggle and a lot of problems could negatively impact your bottom line. Whether you’re working with a major organization or are a small contractor, you deserve and desire peace of mind. This is why you’ll want to invest in contractor’s insurance. Unfortunately, a lot of people are unfamiliar with this specific type of insurance. What is it and how does it help? Continue reading to find out. We bind contractor insurance in all major provinces across Canada such as Ontario, Alberta, British Columbia, Nova Scotia, New Brunswick.
Basically, contractors insurance is a type of insurance coverage, which is specifically designed for professional contractors. There are many different types of contracting businesses and this form of insurance can be manipulated and altered, until it perfectly suits the specific industry you serve, whether it is engineering, janitorial or construction. The insurance can also be personalized to accommodate any business size.
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Types of Contractors We Commonly Insure
- Alterations, Renovations or Repairs (Residential)
- Antenna & Satellite Installations (Residential)
- Carpentry – With Shop Operations/Away From Shop
- Chimney Cleaning (Residential)
- Decks & Fencing
- Doors, Windows, Siding, Awnings
- Drywalling, Plastering & Lathing
- Electricians (No Industrial)
- Floor Covering & Ceiling Installations
- Glass (Glazier) Installation
- Heating Equipment & Combined Air Conditioning (Residential)
- Insulation (no asbestos/UFFI or EIFS)
- Interior Decorator (Cosmetic)
- Lawn Sprinkler Installation
- Machinery, Agricultural
- Machinery, Industrial (Millwright)
- Masonry (Including Bricklaying, Stonework, etc.)
- Painting & Paper Hanging
- Road Construction
- Sheet Metal (Work Done Away From Shop)
- Sign Installation
- Solar Energy Contractors
- Tile Work
- Tree Removal, Trimming, Pruning
- Window Cleaning
- What Is Covered Under A Contractors Insurance Policy?
- Types Of Contractors That Need Contractors Insurance And The Reasons Why?
- How Much Does Contractors Insurance Cost?
- A Comprehensive Guide For Learning How To Apply For Contractors Insurance?
Types Of Coverage
When taking the time to familiarize yourself with contractors insurance Canada laws and coverage, you will find that this type of insurance can cover an abundance of problems. Most people immediately realize that contractors liability insurance from a company like ConstructionBond specifically protects them from general liability problems. Although this is undoubtedly an important component of this insurance, it is not the end all and be all. In fact, this type of coverage can protect you, your business, employees, vehicles, and even your tools. The coverage can be as diverse or simplistic as you desire. It is entirely up to you and your partners to determine how much to cover. Below, you’ll learn about some of the coverage options.
Liability – First and foremost, contractor insurance is often confused with liability insurance. Although there are many similarities, liability is only a minor component of the overall coverage. Liability coverage is put into place to protect the consumer in the event that something goes wrong. It also protects you and your business from lawsuits. This insurance can protect in the event of physical injuries, as well as property damage. Although the other coverage options are optional, liability is integral and should never be ignored!
Automobile Liability – It is impossible for your employees to get to and from the worksite, without a reliable vehicle. Unfortunately, allowing your employees to drive company vehicles can be problematic and could result in lawsuits and other problems. This is where automobile liability coverage will enter the picture. Insurance for contractors offers optional coverage for non-owned automobiles. This coverage is a good addition, if your employees intend to drive their own vehicles, during the workday.
Property Insurance – A business isn’t a business without a suitable headquarters. Your team gathers at this facility in the morning to formulate a plan for the day. In all likelihood, your property holds many valuable assets, including supplies and tools. If anything happens to your property, you could lose all of these items and this could potentially result in your business going bankrupt. This is one of the most notable benefits associated with contractor insurance. It is often possible to add this type of coverage to your contactor insurance plan and doing so it highly recommended. Property insurance will protect your company’s buildings, equipment and tools from accidental physical loss.
Complete Operations Coverage – Although your employees will go above and beyond to ensure a satisfactory conclusion for each and every project, this doesn’t always happen. A simple, unseen mistake might’ve resulted in a faulty installation. If this is the case, the roof could collapse long after you’ve gone and your company may very well be held responsible for the damages! Completed operations coverage is yet another option you’ll have, when seeking out general contractors insurance. It is not a necessity, but it can provide you and your business partners with a little additional peace of mind. The coverage protects your business from costly claims associated with bodily injury and property damages after the construction or service project has concluded.
Material And Supplies – Contractors are often responsible for transporting their materials and supplies to the job site, before the work can begin. The transportation portion of the project could result in a loss of assets. An accident could cause your materials to become damaged and unusable. Some insurance providers will also offer coverage for these items, while they remain in transit.
Contractors liability insurance can be very diverse, if you need it to be. It can cover an assortment of problems, if you feel there is a need for it. Or, you can slim down the coverage and diminish the cost to save your company money. It is entirely up to you and your business partners to figure out what coverage is needed and what can be avoided.
Why You Need It
The future is truly uncertain. Problems could arise at any point in time and you cannot prepare yourself enough. As a contractor, you’re responsible for yourself, your family, your business, and your employees. If you allow your business to falter and go bankrupt, you’re letting each and every one of these individuals down. Failing to protect your business with the appropriate insurance is one surefire way to run into troubles. At the same time, you’re responsible for protecting the consumer’s investment. If something goes wrong, your business will be forced to pay up, unless you’re covered. Below, you’ll learn about the top reasons for obtaining contractors insurance.
Protecting Clients – Your clients are going to hold you responsible for your failures. If they feel you’ve left them down in anyway, they may very well file suit against your company. This happens frequently within Canada, so it is in your best interest to avoid the complications associated with a civil suit. With the insurance, you’ll be able to overcome these obstacles, without paying out of pocket. The insurance will cover damages done by your employees, so your consumers can remain happy.
Protects Employees – A failed business will ultimately impact a large group of people, including your employees. If your company has installed a fire alarm in the client’s home, but it fails to alert them to a fire, your company will face a lawsuit. If you lose that suit, you’ll be forced to pay out of pocket and could very well be pushed into bankruptcy. For the sake of your employees, this cannot be allowed to happen. You need to pay out the minute premium to keep the futures of your employees safe and secure. They put their lives on the line for you every day, so you truly owe it to them.
Protection From Financial Loss
Without a moment’s notice, you could be left facing a legal battle in a court of law. With this being said, all business owners are going to be at risk of financial loss, linked to a civil lawsuit. This is one of the main reasons why all contractors should have a plan set in place, which includes contractors’ insurance coverage. Of course, your policy should include property and comprehensive general liability protection along with a bonding facility that provides bid bonds and performance bonds in the event you bid to win jobs. This coverage will protect you from financial loss, in the event of an accident that involves a client or his/her property.
A claim or lawsuit filed against your business can be detrimental, making it extremely difficult to overcome. Not only will you be left with monetary loss, but your reputation will be ruined, if the court rules in favor of the client. It will be left up to you to protect your company from these damages, so why not begin with a customized contractor insurance policy that is tailor made to suit your needs and preferences.
A Means Of Financial Support
Nothing can fully prepare you for the future after a current or former client files a claim against your company. Not only are you potentially going to be forced to halt all business operations, but you will probably be left without a source of income. Raising a family, operating a business, and keeping a home afloat after an incident like this occurs, will be nearly impossible. Contractor insurance not only offers you peace of mind, but it can cover the costs of loss income.
If you have an active claim or lawsuit pending, you will be seen as a “high risk” contractor. This will leave your feeling hopeless and eventually broke, but not if you protected your company in advance with contractor insurance.
The only thing holding many contractors back is the overall cost of premiums. They’re unaware of the costs and the unknown can always be frightening. The truth of the matter is that the cost isn’t always all that expensive and contractors will always have the option of slimming down their coverage to also cut their costs. By sticking with general liability insurance only, you’ll be able to keep the costs to a minimum. However, contractors can add additional coverage for added peace of mind. In the long run, filing a single claim will guarantee that the insurance pays for itself. Just remember that a handful of variables, such as the coverage needed, your general area, and your company’s history, along with weather or not you will be needing bonds for construction, can all play a vital role in formulating a more definite figure.