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Ontario Trades and Contractors Insurance

Protecting Your Business, Securing Your Future

In the dynamic world of trades and contracting, safeguarding your business with comprehensive insurance is a pivotal aspect of ensuring your business's success and longevity.

At Youngs Insurance Brokers, we understand that contractors and tradespeople face unique risks and challenges. That's why we specialize in providing comprehensive trades and contractors insurance solutions, uniquely designed to address the unique risks and needs of the construction industry, offering peace of mind and financial protection for contractors, their clients, and projects.

Get a Quote Now or call us: 1-800-565-8552

contractor in ontario happy about his small business insurance

Who Needs Trades and Contractors Insurance?

In Ontario, trades/construction insurance is essential for a wide range of professionals, including:

  • General contractors
  • Subcontractors
  • Construction companies
  • Builders
  • Electricians
  • Plumbers
  • Carpenters
  • HVAC technicians
  • Real estate developers
  • Landscapers

Essentially, any individual or business involved in the construction, renovation, or repair of buildings and structures needs this insurance to protect against job-related risks and liabilities.

roofers and contractors happy and safe smiling because they are protected by contractors insurance

If you or your business does any of the following related trades or something similar, specialized trades/construction insurance is also needed:

  • Elevator fitting and installation
  • Operating construction machinery and equipment
  • Installation or maintenance of electrical wiring
  • Plumbing and pipefitting tasks
  • Gas fitting and related work
  • Roofing projects
  • Work involving sheet metal
  • Ironwork and steel construction tasks
  • Bricklaying, including brick, block, and stone masonry
  • Cement masonry
  • Carpentry services
  • Installation of drywall and ceilings

Why Do You Need Trades and Contractors' Insurance? 

Insurance for contractors and trades is crucial as it provides a financial safety net for the unique risks associated with the industry. From sudden accidents on construction sites to potential legal disputes, your hard work and investment deserve protection against unforeseen events that could otherwise jeopardize your business and financial well-being. Insurance is not just a safety net; it's an essential tool that enables you to operate confidently, knowing you are prepared for the unexpected.

Insurance Requirements for Ontario Contractors

In Ontario, contractors are required to have specific insurance coverages, such as General Liability Insurance and Workers' Compensation. These requirements are designed to protect not only the contractors themselves but also their clients and the public.

What Does Contractors Insurance Cover?

Trades and contractors' insurance acts as a shield, safeguarding you, your employees, your equipment, and your clients. It provides coverage for a range of scenarios, including:

  • Liability Claims: Protects against lawsuits for bodily injuries or property damage caused by your work.
  • Property Damage: Covers accidental damage to property or equipment.
  • Worker's Compensation: Ensures that your employees are protected in case of job-related injuries or illnesses.
  • Business Interruption: Assists in mitigating financial losses if your operations are temporarily halted.

Types of Coverages to Consider:

To comprehensively protect your business, consider the following coverages:

  • Commercial General Liability: Protect your business from legal claims and financial liabilities arising from accidents, injuries, or property damage that occur on your premises or as a result of your business operations.
  • Professional Liability Insurance: Also known as Errors and Omissions insurance, this protects against claims of negligence, errors, or omissions in the services provided, which is particularly important for those offering consultation or architecture services.
  • Wrap up Liability Insurance: for large projects, we recommend that the General Contractor on the project, obtains a wrap up liability policy. Risk is often pushed down a ladder of responsibility from general construction managers to subcontractors. To protect everyone involved in a large project, wrap-up liability insurance serves as a centralized policy that covers the entire team against financial liabilities.
  • Commercial Property Insurance: Protect your physical assets, including your business property, equipment, and inventory, against damage or loss due to fire, theft, vandalism, and other perils.
happy contractors and subcontractors going over their contractor insurance policy feeling protected
  • Commercial Auto Insurance: Ensure that your business vehicles and drivers are protected on the road, whether you have a single company car or a fleet of vehicles. You will need to advise if you have any attached machinery on any vehicles  ( i.e. crane, hoist etc)
  • Workers' Compensation Coverage: Mandatory in Ontario, worker's compensation insurance is designed to cover medical expenses, compensate for lost earnings during recovery, and provide death benefits should your employees experience injuries, illnesses, or unfortunately pass away while carrying out their work duties.
  • Contractor's Equipment Insurance: A specialized offering  that provides coverage for the tools, machinery, and equipment owned or rented by contractors and construction professionals. It safeguards against loss or damage to these assets, whether on the job site, in transit, or while stored, ensuring that contractors can continue their work without substantial financial setbacks in the event of equipment-related incidents.
excavator insured by contractors and trade insurance
  • Builder’s Risk Coverage:  Also known as Course of Construction Insurance Provides essential protection against damage or loss to buildings and structures under construction, including materials and equipment, covering risks like fire, theft, and weather-related damage during the construction process.
  • Equipment Breakdown Insurance: This coverage helps cover the cost of repairing or replacing essential or specialized  business equipment and machinery that breaks down due to mechanical or electrical failures. It can often be categorized as Contractors Equipment Breakdown coverage.
  • Business Interruption Insurance: This coverage helps replace lost income and covers ongoing expenses if your business operations are disrupted due to a covered event, such as a fire or natural disaster.
  • Installation floater coverage: Offers protection for materials and equipment from the point of transit to the installation site and until the project completion, covering losses due to theft, damage, or other risks during transportation and installation.
man repairing equipment covered by contractors and trades insurance
  • Surety bonds: Acts as a financial guarantee to project owners, ensuring that contractual obligations, such as project completion and payment of subcontractors and suppliers, will be met by the contractor. Any jobs for Regions, Cities Municipalities in particular will require proof of a Surety facility at the bidding and tendering stage. Without this facility, the contractor may lose out on the project, or be called upon to provide their own line of credit or monetary bid to be held until completion.
  • Pollution Liability Insurance: Provides coverage against claims and legal liabilities arising from accidental pollution and environmental damage caused during construction or contracting work, including cleanup costs and related damages.
  • Cyber Insurance: Protect your businesses from a variety of incidents, including data breaches, cyber theft, and cyber extortion, and helps mitigate the financial losses resulting from these cyber incidents.
cyber security specialist ensuring the business is protected from cyber crimes

How Much Does Trades and Contractors Insurance Cost in Ontario?

Here are some factors that can influence the cost of small business insurance in Ontario:

Type of Business, or Industry: the single biggest factor used to determine the premium rating structure is simply what type of business or industry we are insuring. The base for all policies starts with Liability coverage- a high-risk operation (manufacturer of critical auto parts) will pay more simply because of the possibility of significant claims.

Business Size: The size of your business, including the number of employees and annual revenue, will also affect your insurance premiums.

Location: Your business's location within Ontario can also impact insurance costs. Urban areas may have higher insurance rates due to increased risk factors like crime or higher property values. Your location, and the amount of protection ( fire, alarms, lighting) will affect how the Insurer rates your policy.

Claims History: Your business's claims history, including the number and severity of previous claims, can impact your insurance costs. A history of frequent claims may lead to higher premiums and reduced or unavailable coverage.

The cost of trades and contractors insurance varies based on several factors, including the nature of your work, the size of your business, the number of employees, and your claims history. At Youngs Insurance Brokers, we provide personalized assessments to ensure you receive coverage that aligns with both your needs and budget.

Understanding Contractor’s Insurance Through Claims Examples

In Ontario, trades and contractors face various risks that can lead to insurance claims. Understanding these risks through common claim scenarios illustrates the importance of having comprehensive insurance coverage. Here are three scenarios:

    Property Damage During Construction:
    A contractor is working on a renovation project in a residential neighbourhood. During the demolition phase, a wall is mistakenly knocked down, causing significant damage to the adjacent property. Without proper liability insurance, the contractor would be responsible for all repair costs out-of-pocket. General liability insurance can cover the cost of damages, protecting the contractor's finances and maintaining their professional relationships.

    Bodily Injury on the Job Site:
    An electrician is installing wiring in a new building. Despite safety measures, an employee falls from a ladder and sustains serious injuries, requiring hospitalization. Workers' compensation insurance is crucial in this scenario, as it covers medical expenses and lost wages for the injured employee. Without this coverage, the contractor would face significant financial and legal repercussions, highlighting the importance of having adequate protection for all team members.

    Theft of Tools and Equipment:
    A plumbing contractor stores expensive tools and materials in a locked trailer on a job site overnight. The next morning, they discover a break-in and significant theft of equipment. Contractors' equipment insurance can cover the cost of replacing stolen tools and materials, ensuring the contractor can continue their work with minimal disruption. Without this coverage, the contractor would need to absorb the financial loss, potentially impacting their ability to complete current and future projects.

    These scenarios underscore the importance of having proper insurance coverage for Ontario trades and contractors. Property damage, bodily injuries, and theft can have significant financial implications for businesses operating without adequate insurance protection. Investing in comprehensive coverage not only safeguards against unforeseen expenses but also provides peace of mind, allowing contractors to focus on their work with confidence.

    What is the Process for Getting Insurance for My Business? 

    When partnering with our insurance brokerage, businesses can expect a comprehensive and personalized approach to managing their insurance needs. Our process is designed to ensure that your company is adequately protected, taking into account the specific risks associated with your operations. Here's what you can expect when you work with us:

    In-depth Review of Your Current Insurance Portfolio

     We start by thoroughly reviewing your existing insurance policies, including the types of coverage you have, the limits of each policy, and any potential gaps in coverage. This initial assessment helps us understand the foundation of your current risk management strategy.

    Personalized On-site Visits

    Our dedicated team will visit your business premises to meet with you, your employees, and key personnel. This step is crucial for us to gain a deeper understanding of your business operations, the roles of your team members, and the specific risks your business faces daily. By getting to know your business inside and out, we can tailor our recommendations to fit your unique needs.

    Risk Assessment and Recommendations

    Armed with a detailed understanding of your business, we proceed to meticulously assess every potential scenario that could pose a risk to your operations. We consider a wide range of factors, from common industry risks to specific vulnerabilities unique to your business. Based on this comprehensive risk assessment, we make informed recommendations for coverage that addresses your specific needs, ensuring that you are well-protected against unforeseen events.

    Annual Review and Adjustments

    Insurance needs can evolve as your business grows and changes. That's why we conduct an annual review of your insurance portfolio at renewal time each year. This ensures that your coverage remains aligned with your current business situation and that any new risks are adequately addressed. During this review, we reassess your coverage limits, examine any changes in your business operations, and make adjustments to your policies as needed. This proactive approach keeps your insurance protection up-to-date and relevant.

    Combining our century-long experience, specialized support teams, and unwavering commitment to customer service excellence, we offer a partnership that goes beyond insurance coverage. Our goal is to be a trusted advisor and support system for your business, providing peace of mind that your operations are well-protected against risks. With us, you gain more than an insurance provider; you gain a partner dedicated to the long-term success and resilience of your business.

    The Youngs Insurance Brokers Advantage

    At Youngs Insurance Brokers Inc., we're not just another insurance brokerage. We're your partners in protection, offering a blend of tradition, innovation, and excellence that sets us apart. Here's why thousands choose us for their insurance needs:

    • Instant Peace of Mind: Get free online quotes in minutes. Discover how easy securing your future can be with our streamlined process.
    • A Century of Trust: With over 110 years of business experience, we bring unparalleled expertise and insight to the table. Our legacy is your advantage.
    • Across Ontario, Close to You: With locations spread throughout Ontario, expert advice and support are always within reach. We're your neighbourhood experts, province-wide.
    • Efficiency That Counts: Time is precious. That's why we pride ourselves on the efficient and quick processing of claims and applications. We work diligently, so you don't have to wait.
    • Commitment to Superior Customer Service: Our dedication to superior customer service and fostering lasting relationships sets us apart. We're here to guide, assist, and ensure your insurance journey is smooth and understandable.
    • Value and Integrity in Every Quote: Competitive rates paired with fair premium policies ensure you receive the best coverage without compromise. With Youngs, your investment is in secure futures, not just policies.
    • Your Champion: As your advocate, Youngs Insurance works for you, not the insurance companies. Our partnerships with leading insurance carriers—trusted brands you know—mean we find coverage that fits your unique needs.
    • Community and Compassion: At Youngs Insurance, our commitment extends beyond policies to people. We're passionate about giving back to the communities we serve across Ontario, a commitment that's integral to our legacy. Through our #GiveBackOntario program, established in 2016, we aim to inspire and collaborate with others in making a tangible difference

    Embark on your journey towards tailored and affordable trades and contractors insurance with Youngs Insurance Brokers.

    Harness the advantages of innovative insurance solutions, ensuring your business is comprehensively protected. Experience a customized insurance service that caters precisely to your business needs.

    Get a Quote Now or call us: 1-800-565-8552

    Frequently Asked Questions

    If I am a subcontractor, do I need my own insurance?
    In Ontario, while subcontractors are not legally required to be covered under a contractor's general liability insurance, it is strongly recommended that they have their own insurance for financial protection. A standard policy often does not automatically cover subcontractors, and employers are not obligated to provide coverage for them. This means that if a subcontractor without insurance causes damage or an accident occurs, the financial burden could fall on the general contractor or the business owner, potentially leading to lawsuits or hefty medical or legal fees. Lack of general liability for the subcontractor will result in them not being awarded the job- Contractors will ask for a Certificate of Insurance from every sub-contractor in order for their Insurer to be comfortable with this project undertaking.
    What is the difference between general liability insurance and professional liability insurance?
    General liability insurance covers claims arising from your insured operations, including bodily injury and property damage claims, while professional liability (errors and omissions) insurance covers claims related to the services provided, such as negligence or professional errors.
    Do I need different types of insurance if I'm a specialized contractor?
    Yes, depending on your specialty (e.g., electrician, plumber, roofer), you may need specific coverages tailored to the risks associated with your particular trade.

    We Customize Every Insurance Quote Specific to Your Needs