Are you a contractor or the owner of a contracting business in Ontario? If so, contractor’s insurance is critical to have in place to protect yourself and your employees. In the case of damage or loss caused to a client or third party by yourself, one of your employees or a subcontractor, this insurance will safeguard the people, tools and equipment involved.
What affects my insurance rates?
Contractor’s Insurance premiums will be dependent on a number of factors, the size of the business being one of them. For a smaller business with just a handful of employees, premiums are lower and cover general liability, basic tools and equipment.
Type of Work
The type of contracting work done (for example, electrical work, working at heights, working with toxic or flammable materials) and it’s inherent risks also play a role in determining the coverage needed.
Location also affects insurance premiums, as insurance brokers factor in things like localized crime rates when insuring vehicles and equipment.
The amount of time that you, your employees and subcontractors have been working in a particular trade will also factor into determining your premiums. Typically, the more experience you have in a particular trade, the lower your premiums will be. An exception to this would be if there are previous claims in your business’s history, as previous claims often raise the cost of insurance. When speaking to your broker, they will look at the date and amount of the claim – if it was relatively small or older than 5 years old, it likely won’t have a damaging effect on your premium.
What would insurance cover?
Your Regal Insurance broker is able to provide a quote for contractor’s insurance based on the aforementioned information, and premiums typically cover general liability, basic tools and equipment. Your broker will advise you if they believe there are risks that wouldn’t be covered by a basic policy. If your work includes offering professional advice that could lead to loss (for example, design work, marketing), you may want to add on Errors and Omissions Insurance. Cyber and Data Breach Insurance can protect you in the event of a hack or encrypted virus, and Legal Expense Insurance covers legal costs in the case of a dispute or if the need for legal advice arises.
How do I know which policy is right for me?
At Regal Insurance, we are happy to tailor a contractor’s insurance package for the specific needs of your business. Contact your Regal Insurance Broker today!