Contractors Liability Insurance in British Columbia

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A general contractor is responsible for overseeing the construction process from the initial planning stages to the final inspection and coordination of permits. With so many tasks being juggled at once, accidents can happen.

Some of those tasks you may be responsible for include ensuring the project is completed on schedule, overseeing sub-contractors, and managing timelines. Your standard contractor’s liability insurance does not only cover the project you are working on, but it also covers all aspects of the project from funding to necessary final changes.

No matter what industry you are in, the right contractor’s liability insurance in BC may cover your business in the event of a loss arising from any of your responsibilities.

We make getting contractor liability insurance in BC easy:

  1. Enter your information for a free Contractor Professional Liability Insurance quote
  2. Select the policy features and limits that works for you.
  3. Pay for it online.

It’s direct, simple, and quick. In just under 5 minutes, you can work with confidence with your BC Contractor Liability Insurance Policy.

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What is Contractor Insurance?

Contractor insurance is one form of business insurance that protects you against the risks associated with general contracting specialties, such as electrical, plumbing, heating and cooling, framing, roofing, painting, framing, roofing, roofing, HVAC, and more.

It is important for business owners to be prepared for the potential liabilities that could result in a large out-of-pocket payment, which could irrevocably damage your business and potentially put you out of work.

Say, for example, you were renovating a condo for a client and accidentally damaged the neighbouring unit. The neighbouring tenant could sue you for the damages. If you had the right contractor insurance, you would be protected financially from any legal fees and relevant damages.

Every industry in contracting is unique. You may never face the same risks as a roofer than if you were an electrician. It is important to tailor your contractor insurance policy to your business needs and maximize your protection.

 

Who Needs Contractor Insurance in BC?

Every tradesperson, independent contractor, and subcontractor in any industry needs protection. You will often need a valid certificate to insure the work you do. It also could be a BC licensing requirement or a necessity for a municipal permit to work on a particular site. It is always wise to protect yourself against third-party lawsuits and losses due to unforeseen events such as floods or fires.

What is Covered in a Standard BC Contractor Insurance Policy?

 

Commercial General Liability Insurance

This policy protects contractors against common claims like third-party property damages or bodily injury – if a customer visits your office and falls, slips, or is otherwise injured. Commercial general liability insurance can cover your legal fees and medical expenses for customers if you or your company are named in a lawsuit. Your commercial general liability coverage limits apply to all employees in your company.

Note: Commercial general liability and professional liability insurance are two very different policies. If you are a construction professional, you may need to include the addition of professional liability insurance into your comprehensive contractors insurance policy.

 

Commercial Property Insurance

Commercial property insurance protects your facility or business from uninsured risks, such as fire, theft, or flood. You can also get business interruption insurance to cover the loss of income due to an insured event. You may also be covered for overhead costs and employee wages. Business interruption coverage does not cover income loss due to an epidemic, infectious disease or government-mandated closing.

 

Equipment and Tools Insurance

As your tools and equipment are your most valuable assets, it is crucial to have tools and equipment insurance. This policy covers you to replace or repair damaged tools, equipment, accessories, and property of others.

 

Builder’s Risk Insurance

Also known as construction liability insurance, builder’s risk insurance protects your building from expensive third-party claims during a project. This coverage is usually required by contractors, but you might be responsible for it. Before you finalize the details of any project make sure to check with your client about who is responsible for purchasing insurance and ensure all parties are adequately covered.

 

Business Auto Insurance

This is also called commercial vehicle insurance or business automobile insurance. It covers vehicles like cars, trucks and vans that are used for business purposes. A commercial auto policy should be purchased for any vehicle used to transport goods, materials, and equipment.

 

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Are There Additional BC Contractor Insurance Coverage Options?

 

Pollution liability insurance

Pollution liability insurance, also known as environmental liability insurance, protects businesses against claims for environmental damage resulting from their day-to-day activities.

Mould remediation, spray foaming, and asbestos removal jobs can all cause environmental damage, which can result in serious financial losses for the owners of the property being affected. They may turn to you to seek compensation.

Pollution liability insurance can pay for expensive cleanup and bodily injury claims (e.g., property damage or respiratory illness can result from toxic substances.)

 

Installation floater

Installation floaters cover costs for damaged materials before they are installed. This is particularly useful when you are working with fragile items that can be costly to replace. You might need to cover a cracked granite countertop or a broken window that was damaged during transport.

 

Products-completed operations liability

Wrap-up liability insurance or products-completed operations liability protects the building owner and you from any claims for bodily injury or property damages for a specified period after construction has been completed. If you have products-completed operation liability, there is no need for a warranty. Insurance will cover any product or installation failures.

 

Commercial property insurance

Commercial property insurance protects your business’s property from theft, vandalism, flood, and fire. You may need to buy a tenant legal liability policy if you are operating in a leased area. This will protect your landlord against any building damage that you may cause, or your employees.

 

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How Much Contractor Liability Insurance in BC?

Different insurers offer different pricing based on various factors. Generally, insurers will take into consideration:

Type of service

Every trade comes with a different level of risk. The higher the risk of your service, the higher the insurance quote. You are more likely to file a claim that will require a larger payout.

Employees

Your insurance costs will go up if you have more employees in your contracting company. There is a greater chance that someone will make a mistake and cause a claim.

Experience

Insurance companies appreciate any decrease in risk. Experience is a key factor in any profession. It leads to better results and fewer errors. You will be able to obtain a lower contractor insurance premium if you are more experienced in your field.

Revenue

Your insurance costs will go up the more your business generates revenue. This is because a claimant could sue you for more damages, knowing how successful you are. Your insurer will have more assets to protect.

History of business insurance

Your premiums could be higher if you have made insurance claims before. This indicates to insurers that you may be more likely to make another claim.

Whether you are a general contractor, construction manager with sub-contractors, or a sub-contractor, getting insured with the right coverage is important. It can be the difference between continuing business for many years to come or being forced to close your doors prematurely.

Call us now and get a free contractor insurance quote with EasyCover.

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