Renovation Contractor Insurance

What is renovation contractor insurance?

Renovation contractor insurance is a commercial programme arranged around work performed on an existing building rather than a new one. It combines liability, tools and equipment, materials in transit and at site, and completed operations. The existing structure the contractor is working in drives the coverage it addresses.

Renovation sits between two things Ontario insurers rate very differently. A new-build contractor works on a site that becomes a building, and course of construction coverage responds to the project itself. A renovation contractor works on a building that already exists, usually still belongs to and is occupied by a client, and is opened up for weeks at a time.

That is not a marketing distinction. It changes which policy wording responds. The moment a contractor takes possession of part of a building to work on it, that part is in the contractor's care, custody and control, and the standard commercial general liability wording excludes damage to property in the insured's care, custody or control. Arranging around that exclusion is the substance of a renovation programme.

How much does renovation contractor insurance cost in Ontario?

The factors that move an Ontario renovation contractor insurance premium, in approximate order of influence, and why insurers look at each one.

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Is renovation contractor insurance required 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.

Outside those requirements, renovation coverage is driven by contract and by permit. Which policies are arranged, and at which limits, depends on circumstances that vary from one contractor to the next:

• What limits the homeowner, property manager or condominium corporation specifies, and which parties must be named as additional insured.
• Whether a municipal building permit is required, and what the municipality demands as a condition of issuing it.
• Whether the property remains occupied during the work, and whether pets, tenants or staff are present.
• Whether the work touches load-bearing structure, plumbing, gas or electrical systems.
• Whether subcontractors are engaged, and whether their certificates are collected and current.
• Whether the contractor supplies any design input alongside the physical work.

What situations does renovation contractor insurance commonly address in Ontario?

Renovation programmes are arranged for a wide range of 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 kitchen renovation where an opened water line floods a finished basement below.
• A contractor whose torch work during a bathroom renovation causes a fire in an occupied home.
• A structural alteration that damages an adjoining unit in a semi-detached or a condominium.
• Tools and newly delivered cabinetry stolen overnight from a property left open for the work.
• A commercial tenant improvement where the landlord requires the building owner named as additional insured.
• A completed basement finishing job that develops moisture damage two winters after the contractor left the site.

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:

1. Request a Quote. Complete an online quote request or call our office to speak with a licensed insurance broker.
2. 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.
3. Review Your Risks and Coverage Needs. We assess your business exposures and insurance requirements to determine the appropriate coverage limits and options.
4. Market Your Account. Sutherland Insurance compares the available commercial markets to help find the best combination of coverage, service, and price.
5. Present Your Options. Your broker will review the available quotes and provide recommendations based on your specific needs and goals.
6. 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.

Who covers damage to the client's existing building during a renovation?

Two policies meet at that question and neither answers it alone. The owner's property policy insures the building. The contractor's commercial general liability insures damage the contractor causes to others. Between them sits the care, custody and control exclusion, which is where uninsured renovation losses come from.