Contractors Insurance
Sutherland Insurance is a fifth-generation independent brokerage in Guelph, Ontario that places contractors insurance across the province. An Ontario contractor's programme combines commercial general liability, contractors equipment, tools, non-owned automobile and, on many projects, surety bonds. Sutherland Insurance has placed commercial business from Guelph, Ontario since 1870.
Key takeaways
- Workplace safety insurance coverage through the Workplace Safety and Insurance Board has been mandatory in Ontario construction since 1 January 2013, including for most independent operators, sole proprietors and partners.
- Under Ontario's Construction Act, a contractor on a public contract at or above the prescribed threshold must furnish a performance bond and a labour and material payment bond.
- Commercial general liability covers third-party injury and damage; it does not cover the contractor's own tools, equipment or workmanship.
- Sutherland Insurance places commercial business across the markets it holds contracts with.
- Who it is for
- Ontario general contractors, trade contractors, renovators and independent operators
- Liability required by law
- No provincial statute requires commercial general liability for most trades
- Workplace coverage required
- Yes, WSIB coverage mandatory in construction since 1 January 2013
- Commonly required by
- General contractors, owners, municipal permits and provincial procurement
- Core policies in a contractor programme
- General liability, contractors equipment, tools, non-owned automobile
- Bond types used in Ontario
- Bid, performance, and labour and material payment bonds
What is contractors insurance?
Contractors insurance is a programme of separate policies arranged around a construction operation rather than a single contract. It combines liability for injury and damage caused to others, property coverage on the tools and equipment the contractor owns, coverage for work in progress, and automobile coverage for the vehicles used. Surety bonds sit alongside it as a separate instrument.
A surety bond is not insurance and does not work like it. A bond is a three-party guarantee: the surety promises the project owner that the contractor will perform, and the contractor indemnifies the surety for anything it pays out. Insurance transfers risk away from the contractor; a bond ultimately leaves it with the contractor.
What can an Ontario contractors insurance policy cover?
What a policy can cover
- Commercial general liability for third-party bodily injury and property damage arising from the work, the site and completed operations
- Contractors equipment coverage on owned and leased machinery, whether at a site, in transit or in storage
- Tools and small equipment, including a scheduled and an unscheduled limit for hand and power tools
- Course of construction or builders risk coverage on a project under way, including materials and work in place
- Installation floater coverage on materials in transit and at the site before they become part of the structure
- Non-owned automobile liability, and optional wrap-up liability arranged on a single named project
Commonly excluded under standard Ontario contractors insurance wordings
- Injury to the contractor's own workers, which the Workplace Safety and Insurance Board system addresses
- The cost of correcting the contractor's own faulty workmanship, materials or design
- Damage to that particular part of the property the contractor was working on when the damage occurred
- Professional design and engineering advice, which contractors professional liability insurance addresses
- Equipment or tools left unattended in an unlocked vehicle, on most Ontario wordings
- Contractual penalties, liquidated damages, and warranty obligations assumed beyond an insured contract
Exclusions vary by insurer and by policy form; the issued policy governs.
How much does contractors insurance cost in Ontario?
The factors that move an Ontario contractors insurance premium, in approximate order of influence, and why insurers look at each one.
| Rating factor | Why |
|---|---|
| Trade classification | Roofing, excavation and structural work sit far above interior finishing classes. |
| Annual revenue and payroll | Contractor liability rates are applied per unit of revenue or payroll. |
| Work at height and hot work performed | Falls and torch work are the two largest severity drivers in construction. |
| Subcontractors used and their limits | Uninsured subcontractors transfer their exposure back to the hiring contractor. |
| Value of owned equipment scheduled | The equipment schedule is the insurer's exposure on theft or total loss. |
| Residential against commercial and institutional work | Each segment carries a different completed-operations claim pattern. |
| Claims history over the past five years | Loss history is a filed underwriting factor for every commercial insurer. |
| Health and safety programme in place | Documented training and site procedure reduce both frequency and severity. |
What insurance is a contractor required to carry in Ontario?
Workplace safety insurance coverage through the Workplace Safety and Insurance Board has been mandatory in Ontario construction since 1 January 2013, extending to most independent operators, sole proprietors and partners. No provincial statute requires commercial general liability for most trades. Under Ontario's Construction Act, public contracts at or above the prescribed threshold require performance and payment bonds.
Beyond those requirements, coverage is driven by contract. Which policies are arranged, and at which limits, depends on circumstances that vary from one contractor to the next:
- What limits the general contractor, project owner or municipality specifies, and which parties must be named as additional insured.
- The trades performed, and whether they include roofing, excavation, hot work or work at height.
- The value of owned and leased equipment, and where it is stored overnight.
- Whether subcontractors are engaged, and whether their certificates are collected and current.
- Whether the contractor provides any design or engineering input alongside the physical work.
- Whether projects require bid, performance or labour and material payment bonds.
What situations does contractors insurance commonly address in Ontario?
Contractor programmes are arranged for a wide range of construction circumstances across Ontario, and the coverage available differs in each. The situations below are common among Sutherland Insurance clients in Guelph and across the province, and each one changes which markets will write the risk.
- A Guelph renovation contractor whose work causes water damage to a finished area of a client's home.
- An excavation contractor who strikes an unmarked underground utility line on a municipal job.
- A trade contractor whose skid-steer is stolen from a fenced site overnight.
- A general contractor required to name the owner and the lender as additional insured before mobilizing.
- A roofer whose completed installation leaks two winters after the job closed.
- A contractor bidding a public project where performance and payment bonds are a condition of the tender.
How Do I Get Business Insurance Through Sutherland Insurance?
Getting insurance through Sutherland Insurance is simple. You can request a quote online or call 519-822-0160 to speak with a licensed broker. We take the time to understand your business, identify your exposures, and find coverage options that fit your needs.
Our Process:
- Request a Quote. Complete an online quote request or call our office to speak with a licensed insurance broker.
- Tell Us About Your Business. Your broker will gather information about your operations, property, revenues, employees, vehicles, contracts, and any other areas that may require coverage.
- Review Your Risks and Coverage Needs. We assess your business exposures and insurance requirements to determine the appropriate coverage limits and options.
- Market Your Account. Sutherland Insurance compares the available commercial markets to help find the best combination of coverage, service, and price.
- Present Your Options. Your broker will review the available quotes and provide recommendations based on your specific needs and goals.
- Bind Coverage and Provide Documentation. Once you select coverage, we arrange the policy and provide any required documentation, including certificates of insurance for clients, landlords, lenders, or other third parties.
What makes Sutherland Insurance different from a direct insurer?
When a claim happens, Sutherland Insurance acts for the client with the insurer, and an in-house claims representative is available on any claim. Sutherland Insurance is an independent brokerage and compares the markets it holds contracts with rather than selling one company’s product. A person answers the phone at Sutherland Insurance, 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.
Frequently asked questions
What insurance does a contractor need in Ontario?
An Ontario contractor programme commonly combines commercial general liability, contractors equipment, tools coverage, non-owned automobile liability and, where design input is provided, contractors professional liability. Workplace safety insurance through the Workplace Safety and Insurance Board is mandatory in construction. Which policies apply depends on the trades performed and the contracts in force.
Is WSIB coverage mandatory for Ontario contractors?
Workplace safety insurance coverage through the Workplace Safety and Insurance Board has been mandatory in Ontario construction since 1 January 2013, extending to most independent operators, sole proprietors and partners in construction. A limited exemption applies to certain executive officers and partners who perform no construction work. The WSIB determines eligibility in each case.
Do I need a surety bond in Ontario?
Under Ontario's Construction Act, a contractor on a public contract at or above the prescribed threshold must furnish a performance bond and a labour and material payment bond. Private owners and general contractors impose bonding requirements by contract. Whether a bond is required on a given project is set by the tender documents or the contract.
What is the difference between a surety bond and insurance?
Insurance is a two-party contract that transfers risk from the insured to the insurer. A surety bond is a three-party guarantee: the surety promises the project owner that the contractor will perform, and the contractor indemnifies the surety for anything it pays. A paid bond claim is recovered from the contractor; a paid insurance claim is not.
Does contractors insurance cover faulty workmanship?
Commercial general liability wordings exclude the cost of correcting the contractor's own faulty workmanship, and they exclude damage to the particular part of the property being worked on. Resulting damage to other property is commonly covered. That distinction is where most Ontario construction coverage disputes sit, and the issued policy governs.
Are tools covered if they are stolen from a work van in Ontario?
Tools coverage responds to theft from a vehicle on most Ontario contractor wordings, subject to the scheduled and unscheduled limits and to a forcible-entry requirement. Tools left in an unlocked vehicle are excluded on most wordings. Limits, sub-limits and security conditions vary by insurer, and the issued policy governs.
How many markets does Sutherland Insurance place contractor business across?
Sutherland Insurance places commercial business, including construction, across the markets it holds contracts with together with multiple managing general agents and affiliates across Canada. It is an independent brokerage licensed by the Registered Insurance Brokers of Ontario. It is not tied to any single insurer.
Get your contractors insurance quote
A licensed Sutherland Insurance broker compares the available markets on every quote request.
Get your contractors insurance quote Call 519-822-0160
A real person answers, Monday to Friday, 8:30 a.m. to 5:00 p.m.