Why Toronto Contractors Need Course of Construction Insurance
What happens if there’s vandalism or a fire at your construction site? Course of construction insurance protects you as a Toronto contractor when you’re building a commercial, residential, or industrial building project.
You’ll also hear it called builders risk insurance and it’s the same thing. This type of insurance for Toronto contractors ensures that your project is protected during the construction phase. Course of construction insurance should be considered as essential for your Toronto construction business.
Do you work as a building contractor in Toronto’s downtown area or does your contractor’s business serve clients in one of Toronto’s many neighbourhoods?
Do you work in Scarborough, Etobicoke, North York, York, East York or are you in Mississauga, Bolton, Caledon, Hamilton, Markham, Vaughan, Newmarket, Aurora, Orangeville, Richmond Hill, or Milton?
Wherever you work as a general contractor in Toronto, Greater Toronto Area (GTA) or anywhere in Ontario, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice and ways to save on insurance for your contracting business.
What is course of construction insurance?
Course of construction insurance, or builders risk insurance, covers a building, job site, and construction materials during the construction phase, including renovation and repair.
This type of insurance usually begins before the first materials arrive on the job site and ends once the project is complete.
Why do I need course of construction insurance?
As a Toronto general contractor, commercial property owner, or property developer, you need to have course of construction insurance to protect what you’re building from start to finish, whether it’s a residential, commercial, or industrial project.
Your typical contractor’s insurance policy would not cover buildings under construction, which is why you need course of construction insurance coverage.
How course of construction insurance can help you as a Toronto builder
A course of construction insurance policy typically covers risks, including:
- Burglary, theft, vandalism, and damage caused by malicious acts
- Fires, explosions, and lightning strikes
- Windstorms, hail, excessive rain, natural disasters, and floods
- Damages caused by the impact of a vehicle or an aircraft
- Collapse of a structure under construction
What doesn’t course of construction insurance cover?
It doesn’t cover poor workmanship, mistakes, or negligence.
What kinds of projects can course of construction insurance cover?
- Small residential builds
- Commercial construction projects
- Large high rises
- Multi-family units
- Single-family dwellings
- Residential and commercial
- Rebuilds
- Municipal projects
How much does course of construction insurance cost for Toronto contractors?
The cost for course of construction insurance will depend on factors such as:
- The type of construction
- The value of the project/materials
- How long the project is expected to last
- Any past claims
- Security measures
How course of construction insurance/builders risk insurance can protect you
1. Vandals deface the building you are constructing with graffiti and destroy parts of the building. Course of construction insurance would help cover the costs of removing the graffiti and repairing the damage.
2. A fire starts in the storage building where your construction materials are and the building and materials are destroyed. Course of construction insurance helps cover the cost to replace the materials and restore the storage building.
3. A windstorm tears some of the roofs of multi-family dwellings you are building. Course of construction insurance would help cover the costs of repairing the damage.
As a Toronto contractor, make sure you have the right contractor insurance package to protect your business
Here’s what you need:
Commercial general liability (CGL) insurance
CGL insurance is essential protection in construction business. It protects you against claims that allege third-party, such as a client getting injured on your job site or their property getting damaged.
It can also help protect you against third-party property damage such damaging property while you are pipefitting work at a jobsite, home, or business.
Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.
It wouldn’t be uncommon for you to have a minimum of $2 million in CGL insurance.
Professional liability insurance
This type of insurance is also known as errors and omission (E&0) insurance.
If you are faced with a lawsuit as a Toronto contractor, professional liability insurance can help protect you against loss in the event of a lawsuit due to a negligent act, or an error or omission in the course of your services.
Tools and equipment insurance
It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your work as a Toronto contractor.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
This type of insurance can also be called equipment floater insurance instead of equipment and tools insurance.
Commercial Auto Insurance
You need commercial auto coverage as part of your insurance package. Your personal car policy will not cover you should you get into an accident while travelling to work.
Mobile property insurance
If you regularly move equipment across different locations, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken offsite.
Mobile property insurance covers transit and theft that could happen due to property not being stored in a secure location, as opposed to commercial property insurance that covers property generally expected to be in a designated location.
What do I do if there’s a claim against me as a Toronto contractor?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your course of construction insurance and the right commercial insurance for you as a Toronto contractor. Our experts are available now to help you navigate the business insurance journey to protect you as a contractor.
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