Contractor Insurance for General and Subcontractors
Are you operating a business in the construction industry? Would you describe your business as a General Contractor or a sub-trade on a job site?
Contractor insurance provides protection for your contracting business and is generally a contractual requirement as well. The types of coverage you need will depend on your business and the types of construction projects you are involved in.
FCA Insurance has been insuring contractors since 1919. FCA and its team are members of multiple construction associations and have decades of experience helping contractors build their insurance program in order their business. Being members of these associations allows us to stay on the pulse of change within these industries, increase our network of connections to help serve clients and gain insights to fuel new ways to protect contractors and their businesses.
3 Most Common Types of Contractor Insurance
Contractors General Liability Insurance
an essential policy for contractors that covers injuries and property damage suffered by visitors to your premises, including legal expenses if you’re sued.
Contractors Property & Equipment Insurance
Property covered under this policy can range from small tools brought to various sites or larger equipment such as an excavator, skid steer or backhoe.
Contractors Pollution Liability Insurance
Covers third party bodily injury, property damage, cleanup costs and defense costs as a result of pollution conditions.
Who needs Contractor’s Insurance?
All contractors regardless of class require contractor’s insurance. At FCA we work with all contractors ranging from new businesses to some of the largest contractors operating in Canada. It is important that you choose to work with an experienced construction brokerage such as FCA, as we have a deep understanding of the industry and your specific business needs. We are here to guide from day one or to advise you through the next phase of your operations. No two contractors are alike and each client requires its own set of unique converges to ensure you are fully protected.
- General Contractors
- Mechanical Contractors
- Plumbing Contractors
- Electrical Contractors
- Sewer and Water Main Contractors
- Road Paving Contractors
- Heavy Civil Contractors
- Landscape Contractors
- Snow Removal Contractors
- Roofing Contractors
- Abatement Contractors
- Restoration Contractors
- Excavation Contractors
- Demolition Contractors
- Forming Contractors
- Framing Contractors
- Drywallers Contractors
- Elevator Contractors
Are you signing CCDC Contracts?
Many of the standard CCDC construction contracts, including the commonly used CCDC 2 and 5B, reference the CCDC 41 Insurance Requirements document. This document outlines the various insurance requirements for contractors including Contractor’s General Liability Insurance, Contractor’s Pollution Liability Insurance and Contractor’s Equipment Insurance. Included in these requirements is ‘Broad Form’ Property insurance. Broad Form Property insurance is also known as Builder’s Risk Insurance or Course or Construction Insurance. Regardless of the size or scope of your contract, if you are signing a CCDC contract that references the CCDC 41, then you are contractually required to purchase a Builder’s Risk policy.Get a Quote
Additional Insurance Considerations For Contractors
Covers property awaiting installation or to be turned over to the owner and is a common extension on a property policy. Typical extension limits are $25,000 – $50,000 but can be increased for additional premium.
Provides additional coverage in excess of your Commercial General Liability and Automobile Liability policies to further protect your business.
Automobile Fleet Policy
Covers any third-party bodily injury or property damage and is required by law when operating a motor vehicle.
XCU Exclusion Endorsement
Provides protection in the event of an explosion, collapse or underpinning, which is commonly excluded on Commercial General Liability policies.
Broad Form Property Insurance
Also known as a builder’s risk, or course of construction policy, that covers the property while under construction, including any improvements.
Wrap Up Liability
Project-specific liability insurance that allows a project owner or contractor to protect his or her business and various other contractors involved in a construction project under one single policy.
FCA is Canada’s Construction Insurance Expert Since 1919
FCA has been providing Canadian construction companies with contractor’s insurance since 1919. We have set the industry standard for turnaround time for both new and existing clients. We pride ourselves in ensuring our clients are receiving the best suite of coverages at a fair price.
The cost of a Property and Commercial General Liability policy varies based on a variety of factors including type of work being performed, revenues, experience, and any property to be insured. As an example, a painting contractor’s premium would most likely be lower than a demolition contractor. As you can imagine, the demolition contractor has the potential for a greater exposure, and they would likely have heavy equipment to be insured.
To get started with obtaining contractor’s insurance, you will need to provide your FCA broker with a baseline of information on your business including experience in the industry, number of employees, sectors you work in (residential, commercial and institutional), revenues and any previous claims if you are an existing business. Following this, you will need to submit a full application and resume.
For new contracting businesses, more emphasis will be placed on experience in the industry as the insurance company providing protection wants to feel comfortable that you understand how to operate a contracting business and a manage employees.
For currently operating contractors looking for an alternative quote, more emphasis will be placed on your claim’s history. Note that claims do happen and that is why insurance is necessary, however, the insurance company is trying to understand the bigger picture and their potential exposure to future claims.
General Contractors, demolition contractors, mold and asbestos and restoration contractors should consider purchasing this policy as it is intended to cover the gap in your Commercial General Liability policy which typically excludes pollution conditions and exposures.
For example, if you are hired to remove mold from a school or a government office and months later when the job is complete and mold is found again, there is potential for a claim to be brought against you. A Commercial General Liability policy would not provide coverage for mold remediation, you would need a Contractors Pollution Liability policy.
Deciding on what limit of Commercial General Liability to carry requires considering what your risk tolerance level is and what limit you are comfortable carrying. The biggest influence on deciding what limit your company should carry is the contractual obligations you are signing. Almost all contracts will have an insurance requirement section that outlines the limit of liability per occurrence you must carry. Over the years, we have seen this requirement shift from $2MM to $5MM per occurrence.
If you are a contractor signing a CCDC 2 – Stipulated Price Contract including CCDC 41 (Insurance Requirements) there is a new version of this contract effective 2021. Part of the new insurance requirements in this contract is an increase in the Commercial General Liability occurrence limit to $10MM. This is something to consider when you are bidding on a tender.
Why Choose FCA Insurance?
Construction is What We do
Our industry leading construction team boasts 15 dedicated and licensed professionals ensuring a smooth and efficient experience.
Trusted by Insurance Markets
Outstanding relationships with all of the most reputable construction insurance markets in the industry, giving you the power of choice.
More Than Just Insurance
We have an extensive network of professionals available to assist our clients and offer regular webinars to keep our clients informed with the latest industry news.
FCA did a great job in assisting me throughout the process. Not only from a bonding aspect but other aspects to relating to attaining approvals, builder’s risk insurance and other financial approvals. Would definitely and highly recommend them.
Our organization has been working with FCA Surety Bonds and Insurance for over 2 years. The team, led by Jamie Collum and Warren Griffiths, exceeds expectation in service, responsiveness and construction knowledge. Our business needs often demand last minute bonding, and we have never been disappointed by FCA. Always going above and beyond to deliver the right solution in a seamless and effortless manner. We highly recommend FCA for all construction insurance needs.
When we have an insurance question, Laura is an email or phone call away and when disaster strikes, she even answered my call at 11:30 pm! Roofing disasters and “a once in a 100 years flood” are examples of tragic events that Laura has seen us through with positive results. She was with us every step of the way. She truly advocates for her clients.
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Our mission is to make insurance accessible. We put you in control of your insurance experience. FCA informs and empowers you, so you can choose amongst robust options, confident in the value of your protection and in the broad reach of your advocates.