Contractor insurance refers to a range of insurance policies designed to protect contractors against various risks and liabilities associated with their construction or contracting business. The right insurance coverage is crucial to avoid legal and financial pitfalls.


Understanding Contractor Insurance

Trades and construction jobs are among the most dangerous professions globally. The industry's competitive nature means accidents, lawsuits, and unforeseen events can quickly drag a business down. Contractors are often required to show proof of valid insurance before starting a project. Insurance is a key part of risk management to protect your business from potential legal issues. Types of contractors we insure includer roofers, renovators, painters, HVAC technicians, and plumbers.

Who Needs Contractor Insurance in Ontario?

Independent contractors in Ontario, whether working full-time or part-time, need insurance. Unlike employees who rely on their company's insurance, self-employed individuals need their own coverage. Independent contractor insurance safeguards your business and livelihood.

What Does Contractor Insurance Cover?

Contractor insuranceSutherland Insurance offers insurance packages which offer comprehensive coverage tailored for various needs:

  • Tools, equipment, stock, tenant improvements, and building coverage
  • Business interruption for income loss and retaining key employees
  •  Crime insurance for employee theft
  •  Installation Floater for building renovations
  • Builders Risk for new constructions
  • General Liability coverage ranging from $1M to $25M
  • Umbrella Liability up to $50M
  • Surety Bonds (Performance, Labour, and Materials)
  • Commercial vehicle insurance for business trucks, including those used in the US

Is Contractor Insurance Mandatory for All Contractors?

Not all contractors in Ontario are legally required to have insurance. However, certain projects, like government-funded ones or private contracts, may require proof of insurance. Even if it's not mandatory, having insurance is strongly advised to shield yourself from liabilities and financial losses. Without coverage, you could be held personally responsible for damages or injuries, which could lead to significant financial hardship.

Navigating contractor insurance can be complex, but understanding its importance and ensuring the right coverage can protect your business from unforeseen risks. Protect yourself and your business by selecting the right insurance coverage that meets your industry requirements and specific business needs.

For more information from Sutherland Insurance on Contractor Insurance and to receive your free quote, click here.

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