What Is Covered Under A Contractors Insurance Policy?

Coverages –  What would happened if you are in a lawsuit?

As a business owner, it is of the upmost importance to keep your business operating fluidly and efficiently throughout the year. As you likely already know firsthand, there are numerous problems, Contractor Bond Insurance quotewhich could throw an obstacle into your path. A vehicle breakdown, an onsite injury, or loss of tools could all decrease the productivity of your business and result in massive losses. Any of these problems could force you to miss a day’s work and this will set your business back substantially. This is where contractors liability insurance can prove to be immensely helpful. Within this guide, you will learn precisely what can be covered within a contractors liability insurance policy along with the types of contractors that commonly buy insurance before starting work as they are required to by the law.

Consumer Disputes

Although it is in your best interest to provide each and every client with a thoroughly satisfying service, this won’t always happen. Sometimes an unexpected problem will arise and it’ll hinder your ability to satisfy the client. Or, one of your employees may do something unthinkable and this could result in a conflict with your client. If this occurs, your company may very well be hit with a civil lawsuit. Courts within the country of Canada handle thousands of civil suits each and every year and many of them stem from consumer disputes with their contractors.

Unfortunately, lawsuits can drag out for many years. Some Canadian lawsuits will expand over a period of two or more years, before it’ll go to trial or eventually settle. During this time, your company will be required to pay a team of defense lawyers and the costs will become astronomical very rapidly. This is where liability insurance can be beneficial. General liability insurance for contractors can cover your business in the event of property damage and bodily injury. With the BI portion of your coverage, the insurance provider will pay for the complainant’s medical bills.

The property damage or PD coverage will help pay for damage assets, vehicles, pets, and even lamp posts. Since the insurance can cover these costs, it could very well help keep your business afloat after a lost lawsuit or it might help you avoid the suit all together.

Completed Operations

If you work as a construction contractor, your work will serve the client for an extensive period of time. A problem could occur many months after the work has been completed and you could still be held responsible. The flooring you’ve put into the home could give way resulting in a costly injury to the consumer. General contractors insurance policies often offer optional completed operations coverage. This can be very helpful and will protect your business long after the project has come to a conclusion.

This type of  coverage can protect from property damage and bodily injury claims after the project has been completed. Although this coverage can increase the price of the premium, it delivers extensive peace of mind and is truly well worth it.


In all likelihood, your company utilizes a headquarters and all of your employees meet at this facility each and every morning. Your vehicles, tools, and other essential equipment is likely kept in this location, once the workday has come to an end. Although many people do not know it, it is possible to add property coverage to your contractor’s insurance. With property coverage, you’ll be able to protect your business-related buildings, business personal property, and even your equipment from physical loss. If you have a lot of valuable assets at your place of business, adding this coverage to your policy is definitely a no-brainer.

Equipment Breakdown

As a contractor, you will be relying on your employees and equipment to keep your business in operation. If at any time, your equipment malfunctions you will be left with no alternative, but to halt all operations. As you well know by now, a business that is not in operation is a business that is not making any money. If you are under a contract with a deadline that is nearing, you will also be at risk of failing to comply with the terms of the agreement.

Small hand tools are easily replaced, but not heavy equipment, especially cranes and backhoes. You will not only be responsible for hiring a heavy equipment mechanic company, but you will be responsible for all of the repair and downtime costs. These expenses can run into a lot of money, leaving with a monetary loss that can be nearly impossible to recover from.

Did you know that if you had contractors’ insurance Canada at the time of the incident, you would be fully protected from financial loss? Well, you very well would have, but it is never too late to obtain quality contractor insurance coverage from a reputable provider.

Business Interruptions

As mentioned above, business operations can be halted without a moment’s notice due to equipment failure. Most construction jobs require contractors to work outdoors, where they are exposed to the elements. Heavy downpour, snow, and storms can cause an interruption in business operations. In fact, even the slightest mention of a natural disaster can cause you to shut down your business for at least 24-48 hours.

Contractors’ insurance coverage can protect your business from financial loss, in the event of a natural disaster. There is generally no way to survive in today’s construction industry without this type of protection.


It seems that the crime rate is continuously increasing from one day to the next. Criminals work day and night, just to get their sticky fingers on expensive items, especially mechanical equipment. Equipment or supply theft can leave a devastating effect on your budget, especially if your business is not covered under a contractor insurance policy. Never take the risks and expect your business assets to protect themselves, because it is not going to happen. Instead, get covered today and get peace of mind.


At the end of the day, contractors insurance can provide you with protection in various ways. Most people only see the liability aspect of the coverage and ignore everything else. This is truly a mistake, since the coverage is widespread and very diverse. As a contractor, you owe it to your clients, employees and family to acquire a sufficient amount of insurance, before a problem can arise.

Frequently asked questions regarding contractors insurance


Types of Contractors We Commonly Insure