Construction & Contractors Insurance

Managing Your Risks¶

Whether your construction project means thousands or millions of dollars at stake, we can help you manage your risks and ensure a profitable bottom line.

Builder’s Risk Insurance¶

Property insurance is great coverage to have, but it doesn’t protect a building while it’s being constructed or during major renovations.

Builder’s risk insurance protects not only the building(s) and property, but any construction materials stored on the site, and can include coverage for general liability. It’s also known as course of construction (COC) insurance, or sometimes as construction all-risk insurance.

It can be purchased by the general contractor or the property owner — but it’s important to ensure you have that conversation with your client to decide who is taking on that responsibility.

Costs will depend on the type of the value of the building and the type of project. For example, insuring a new high-rise condo build or a new school will cost more than renovating a single-family home. Builder’s risk policies will have options to cover the following types of structures and materials:

• Foundations
• Temporary structures such as scaffolding
• Paving, fencing, and outdoor fixtures
• Building materials
• Lawns, trees and plants installed by the builder

Builder’s risk insurance may not cover all eventualities, for example, water damage. That’s why it’s essential to speak with a broker to ensure you’re fully protected.

Contractor’s Insurance or Commercial General Liability (CGL)¶

Contractor’s insurance provides liability protection to construction businesses in case of bodily harm or property damage during the course of business. It’s also sometimes called commercial general liability (CGL) insurance or simply general liability.

Contractor’s insurance policies will usually cover a broad range of damages, including faulty workmanship, job-related injury, and advertising injury or defamation.

Having excellent coverage can help business owners close more contracts. By demonstrating that you're fully covered, you show property owners that you're responsible and conscientious.

Learn More About the Benefits of Commercial Construction Insurance

Contractor’s Error and Omissions and Contractor’s Rework¶

In complex projects, sometimes mistakes just happen. Contractor’s errors and omissions coverage can act as your safety net against legal ordeals if a claim is brought against you. For example, if your company makes a mistake that means your client loses revenue, errors and omissions could cover both the cost to re-do the faulty work and the client’s lost revenue.

Contractor’s rework insurance can cover the cost if you ever accidentally provide faulty workmanship or materials in a project — even if there are no legal proceedings involved. Rework coverage helps preserve your bottom line and your reputation by paying for the additional materials and labour involved in the fix.

Installation Floater¶

An installation floater can cover materials that have been purchased but haven't been installed yet. They may be in transit, or located at a temporary storage site (either on the construction site or elsewhere). Either way, if they are stolen or damaged, only an installation floater can protect them. For example, if you have purchased hardwood flooring for a project, but it's stolen from the property, you could be covered by an installation floater.

Contractors Equipment Floater¶

Your tools and equipment save time and allow you to do the job efficiently. But if they're stolen or damaged while in transit, the costs can add up if you're not protected. Contractor's equipment floaters can cover everything from safety gear and hand tools up to bulldozers, forklifts, and other heavy machinery.

Surety Bond¶

Surety bonds protect project owners in case a contractor doesn't have enough money to finish a project or, in very large construction jobs, a project phase. It’s not insurance: it’s a financial tool for your business that provides protection for your client under specific circumstances.

There are many kinds of bonds, including:

• Contract surety bonds that guarantee you'll abide by the terms of the contract, so the work will be completed and subcontractors paid.
• Bid bonds that ensure you'll take the work if you win the contract.
• Labour and material payment bonds that guarantee vendors and suppliers will be paid according to the contract.
• Performance bonds that guarantee that you'll complete the work as laid out in the contract. These often include a one-year maintenance period.

Builder’s Risk Insurance¶

Property insurance is great coverage to have, but it doesn’t protect a building while it’s being constructed or during major renovations.

Builder’s risk insurance protects not only the building(s) and property, but any construction materials stored on the site, and can include coverage for general liability. It’s also known as course of construction (COC) insurance, or sometimes as construction all-risk insurance.

It can be purchased by the general contractor or the property owner — but it’s important to ensure you have that conversation with your client to decide who is taking on that responsibility.

Costs will depend on the type of the value of the building and the type of project. For example, insuring a new high-rise condo build or a new school will cost more than renovating a single-family home. Builder’s risk policies will have options to cover the following types of structures and materials:

• Foundations
• Temporary structures such as scaffolding
• Paving, fencing, and outdoor fixtures
• Lawns, trees and plants installed by the builder

Builder’s risk insurance may not cover all eventualities, for example, water damage. That’s why it’s essential to speak with a broker to ensure you’re fully protected.

Completed Operations Period¶

Completed operations period policies can cover damage to a finished building that can be traced back to faulty work done by your company. For example, if a fire causes damage to part of a building, and your electrical work is determined to be the root cause, your completed operations protection could provide funds to repair the damage. These policies are available for different timeframes, including one year, two years, and three years.

Non-Owned Automobile¶

Are your employees using their personal vehicles to do work for your company, even occasional quick errands? You should be aware that their personal auto insurance may not be enough to cover extensive damages in the event of an accident — and costs could get passed on to your company. Say your employee was driving to pick up lumber for your project in their truck and they caused damage and injury by getting into an accident. Non-owned automobile insurance could protect your company if the vehicle involved was not owned by your company, but was driven while carrying out work for you. These policies can include rental vehicles as well as employee-owned vehicles.

Pollution Cleanup and Removal¶

If work done by your company leads to any kind of pollution, you may be liable for cleanup costs. For example, if the plumbing you installed leaks sewage into the ground, your company may be held responsible.

Specific pollutants will be defined in your policy, but can include things like oil, chemicals, and acids — and they can be vapours, liquids or solids. Smart contractors ensure they're covered for costs to remove pollutants and restore land and/or nearby water to their original condition. Don't forget to ask us about potential third-party claims for damage or injury because of pollutants.

Project Interruption Costs¶

If unexpected issues push back schedules on your job site, a host of additional costs could become your responsibility. If you're concerned about having to pay for loss of revenue for your clients due to delayed schedules, then a project interruption costs extension may be the right answer for you.

Wrap-Up Liability¶

If your construction project is very large, wrap-up liability coverage may be the right answer. It provides uniform coverage for general contractors and subcontractors, allowing each company to use it if the conditions are met. It's similar to commercial general liability in that it protects construction businesses from third-party liability and general liability.

Remedial Work Coverage¶

Remedial work coverage picks up where wrap-up liability leaves off, protecting your business up to a year after work is complete. It can provide coverage related to damages incurred while fixing problems related to the original work. For example, let's say that some tiling develops cracks shortly after the completion of a building, and while replacing the affected tiles, nearby hardwood flooring is damaged. Remedial work coverage would protect the contractors or subcontractors involved.