The Ontario construction industry is booming. Cities and towns are chock-a-block with a wide range of builds and renovations. Communities across the province are being transformed. There's no doubt that construction companies are in high demand, but that doesn't mean they aren't also at risk for financial loss without the protection of the right insurance coverage.
Construction business insurance is essential for those in the construction industry. Construction insurance in Ontario provides a construction company and interested parties in the property with peace of mind during construction. Construction projects can be risky and expensive for businesses to participate in. There can be many unforeseen events, delays, mistakes, and errors. These problems can and do occur. Construction insurance is in place to provide insurance protection in these kinds of circumstances.
Construction insurance is a type of business insurance coverage tailored to best protect a construction company based on its specific operations and those operations of third parties on construction sites.
Construction insurance covers a project from start to finish—sometimes even beyond. Various forms of construction insurance policies can be arranged from a project's start to finish.
A construction business insurance broker is a trained and trusted advisor who will help contractors and builders get construction insurance. Ontario brokers will gather information about your business, and, generally speaking, an application or applications are required, as the complexity of each construction project is often very different. As you know, each construction project has its considerations, needs and potential pitfalls. The same applies to construction insurance. Ontario construction company owners can rely on our team of experienced brokers to help them find the best coverage for the perils they are likely to encounter.
Among the primary considerations for construction insurance in Ontario are:
These are among some of the factors that will inform a construction insurance broker to determine the types of coverages needed, limits of insurance, and the premium. When you speak to your Morison Insurance broker, give them as much information as possible about how you choose to run your unique business. No two businesses are alike, and that's why a one-size-fits-all insurance solution just doesn't work. You need construction insurance coverage that is specifically designed to address your company's insurance needs so you have the right type and amount of coverage in place when you need it most.
There are numerous things to think about when looking for construction business insurance and determining what coverages to purchase like cyber protection, commercial auto/fleet coverage, bodily injury coverage, and tenants legal liability. Among the coverages to think about when looking for construction insurance in Ontario:
Construction insurance can protect interested parties' assets and help with financial compensation for covered losses, which may otherwise put a company out of business. Commercial general liability funds judgments/settlements associated with third-party legal matters. Companies can help avoid potential bankruptcy due to damages or losses and potential lawsuits by ensuring proper construction insurance coverage is in place.
Construction sites are complex. They are busy with lots of people, tools, equipment, and technology on-site. The sites can be dangerous, and unfortunate events can and will occur. It is best to have the proper construction insurance in place to protect you in the event of a loss.
Construction insurance can help your business by assisting the company in securing contracts which, without confirmation of construction insurance in place with limits to meet contractual obligations, the business may not obtain. Construction insurance can also help solidify a company's strong reputation in the construction industry for being an insured and/or bonded operation.
Anyone generating revenue by offering construction services/operations needs construction insurance. Some examples of these kinds of services/operations include:
Among the primary considerations for construction insurance in Ontario are:
These are among some factors that will inform a construction insurance broker to determine the types of coverage needed, the limits of insurance, and the premium. When you speak to your Morison Insurance broker about a construction insurance quote, give them as much information as possible about how you choose to run your unique business. No two businesses are alike, so a one-size-fits-all insurance solution doesn't work. You need construction insurance coverage specifically designed to address your company's insurance needs so you have the right type and amount of coverage in place when you need it most.
Construction insurance can cover many factors, including professional liability, builder's risk, tools and equipment, and delay in completion. Among the coverages a construction business insurance program may include are:
A commercial insurance broker specializing in construction insurance must know details about your business when looking for construction insurance. When starting a construction insurance quote, your Morison Insurance broker will discuss construction insurance coverages, endorsements, limits, exclusions, and costs. You will need construction insurance that is specially crafted to meet your business's needs. The policy would include commercial general liability layered with other additional coverages—such as those listed above—to meet the business's specific requirements and the site or building involved.
Construction liability insurance is a set of insurance coverages specifically designed to address the liability concerns that can arise in the construction industry. There are a broad range of reasons why someone may choose to bring legal action against you, from alleging that you or your employee caused anything from third-party property damage to advertising injury.
There are multiple types of construction liability insurance policies that each offer coverage against a variety of liability expenses. Commercial general liability insurance, or CGL insurance, is a primary type of coverage for third-party bodily injury and property damage. Construction professional liability insurance covers litigation for issues such as errors in design, failure to deliver promised services, and errors in advice.
Environmental/pollution liability insurance applies to scenarios where your business is accused of causing environmental pollution. Cyber liability insurance offers financial protection against the litigation costs that can follow if your business is the victim of a cybercriminal who causes a data breach on your computer system. Umbrella liability insurance is a broad type of coverage that raises your coverage limits for specific underlying liability policies you have for your construction business.
If someone chooses to litigate against you in court, the costs associated with your legal defence can quickly reach a million dollars and continue to climb. Most business owners don't have that kind of money available, so construction liability insurance coverage is crucial. With the right liability insurance, your insurance carrier will provide the necessary funds to cover expenses such as legal mediation, attorney fees, court fees, and settlement costs up to the liability limits listed on your policy.
The cost of construction insurance in Ontario varies significantly because the premiums are determined by numerous factors related to the construction business and the construction work being done. Some of the factors involved in determining the cost of construction insurance are:
Construction projects are complex, and construction insurance can be complicated. Construction insurance is not a one-size-fits-all product. A generic insurance policy is only suitable for some people looking for construction insurance. Ontario construction insurance must be tailored to the insured's specific needs. Builders should speak with an insurance broker specializing in commercial and construction insurance. A construction insurance broker will advise and guide you through the construction insurance process.
It is vitally important to work with a construction insurance broker who pays attention to details and works with you to make the process of getting construction insurance as simple as possible. At Morison Insurance, we aim to get the right construction company insurance for your construction business. Call us today to start a construction insurance quote so you can rest assured you have the protection you need to grow your success in the construction industry.
Are you a home builder with a small crew that builds one house at a time? Or are you a home builder who works on larger projects with multiple builds on the go during an insurance term? These types of questions and their answers can significantly impact the type of insurance and the coverage limits you need. For example, it can influence whether you need blanket insurance coverage or project-specific coverage.
Among the many insurance considerations, you need to know the insurance requirements of the town, city, or rural area where the site is located. You'll also need tool and equipment coverage that applies to your specific business circumstances, and protecting materials with an installation floater is essential. Ensure proper stock/material and installation limits are in place in your construction insurance policy and completed operations coverage.
Your customers want to be protected. They want to know that their home builder has insurance. That's why it's advised that subcontractors and/or contractors provide proof of liability insurance and that you only have licensed contractors on the site.
Of course, you don't have to navigate the ins and outs of construction insurance for home builders and renovators. Speak to your Morison Insurance broker, and they'll explain all the necessary coverages so you can ensure you have insurance tailored to the needs of your one-of-a-kind business.
Regarding excavation companies, some considerations apply to more than just some types of construction businesses. For example, one of the first things an insurance company will want to know is where the excavation company is working. Are they working at a mining site, on water, or an island? Are they moving equipment on a barge? Are they doing structural work?
Years of work experience can be a factor when getting construction business insurance for excavation companies. Insurance providers are looking for best-in-class operations. They want to know that there are strict protocols in place. If demolition work is being done, what kind of work is accepted by the excavation company? Is all mobile equipment plated? Are GPS tracking devices installed on the scheduled contractor's equipment? How much demolition work is done (amount per year)? What is the split of operations—for example, underpinning and excavation?
Most often, an excavation contractor has high-valued equipment and tools. Make sure these are correctly insured. It's also important to note that most commercial general liability policies exclude explosion, collapse, and underpinning liability coverage, also called XCU. This must be added to any excavation contractor's insurance policy with suitable limits. Your Morison Insurance broker will ask the questions necessary to determine the types of insurance, coverage limits and exclusions needed to be applicable for your construction insurance policies.
Remember that construction site companies will need to cover their employees’ actions in their work for you with the right types of construction insurance coverage. Here are some coverage considerations when looking for construction insurance for construction site companies:
Some additional considerations to discuss with a construction insurance broker include:
In most cases, proof of construction insurance will be required if a project involves bidding or entering into a contract with a municipality or government body.
Insurance experts specializing in construction business coverage at Morison Insurance are the best place to start if you need a construction insurance quote. We'll take the time to work with you and get to know your business. Sharing information about your business and construction work with your insurance broker is important. This process may take some time, but the time is well spent to ensure you get the right construction insurance coverage for your particular insurance needs.
Receiving year-round excellent service from your construction insurance broker is essential. Your Morison Insurance broker will be available throughout the construction insurance policy term. There are few things more aggravating than trying to reach your broker with a question, to report a claim or change your coverages—and you can't contact them. That's why we ensure we're always available to serve you and are pleased to help you whenever needed.
We can be reached at 1-800-463-8074 or fill out the contact form on this page, and one of our commercial insurance professionals will contact you. Our Morison Insurance brokers will provide a free, no-obligation construction insurance quote to help ensure your company is adequately protected. Let's get started!