What to know about contractors’ insurance

Do I Need Contractors’ Insurance?

Posted by on Jun 22, 2020 in Insurance Advice

If you are an independent contractor, you may be wondering if you need insurance, and if so – what kind and how much?

The short answer is that if you are an independent general contractor providing a service in Ontario, you need contractors’ insurance. This also applies to subcontractors and freelance contractors. The most common types of contractors who require contractors insurance are:

  • Plumbing
  • Construction
  • Landscaping and snow removal
  • Roofing
  • Painting
  • Carpentry and electrical work
  • HVAC and air duct cleaning
  • General cleaning
  • Telecommunications

Contractors insurance is not one set kind of insurance; it can refer to multiple different kinds. These are the three most common types of coverage you will need as a contractor:

General liability insurance provides coverage if you are held responsible for injuries or damage to a third party. It covers things like medical bills, repair costs, and legal costs if you are sued.

Commercial property insurance protects your assets in case of fire, theft, or vandalism. It also protects your business locations and contents – and can be particularly valuable if you have expensive tools or equipment.

Insurance protects you and your business – and gives you peace of mind. At Oegema Nicholson, we want to help you understand why you need contractors’ insurance and how we can help you figure out what kinds of insurance you will need.

Customers Expect It

If someone is hiring you to make major changes to their home or business, they will want to know if you are insured and how much coverage you have. There are several reasons that a potential customer will want to make sure you have insurance:

  • They know they are protected if anything goes wrong while you are building, fixing, or modifying their home or business.
  • They also know they are protected if anything goes wrong after you finish the job.
  • They know that you are a responsible business owner who has taken the right steps to comply with the law.
  • They know that by having insurance, both you and they can have peace of mind that everyone is protected.

All of these are excellent reasons to make sure you are properly insured. A potential customer is much less likely to hire you if you are not insured.

It Protects You from Legal Risks

If you are a contractor, you can be sued for any number of things, from damaging a client’s property to causing bodily harm. You can even be sued if a competitor thinks you’ve said something in an ad that damaged their reputation.

Working by yourself or having only a small number of employees will not protect you from having a lawsuit launched against you if a client feels you have damaged them or their property.

Commercial general liability insurance will provide funds in several different situations:

  • When you have to pay for a judgement or settlement
  • Paying for property damage or medical bills
  • Paying for legal bills

Purchasing Contractors’ Insurance

We hope you’ve enjoyed learning about contractors’ insurance. We’ve talked about the following:

  • What professions need contractors insurance
  • What exactly contractors insurance means
  • The main reason you must have contractors’ insurance is that it’s required by law, it inspires consumer confidence, and it helps protect you in case of a lawsuit or other legal issues.

We want to be sure that you are clear on what kind of insurance you need; and how you and your business can be protected, no matter what kind of situation you encounter.

To learn more about contractors’ insurance and how to get it, call Oegema Nicholson at 613-519-0230 or contact us here.

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"I know all my insurance needs are covered with Oegema, Nicholson & Associates. I have been a loyal client for the last 15 years, and I can count of them for my commercial insurance, employee benefits, as well as my personal insurance and finances. Jeff Richer always goes above and beyond to help me with my insurance needs."
O-Omkar Atwal, Owner, Leitrim Home Hardware
"It’s always a pleasure to deal with Oegema, Nicholson & Associates, and I can depend on them for all my insurance needs. I have been a client for several years and whether it’s regarding my personal insurance, or anything to do with our employee benefits or commercial needs, I know I’m taken care of."
R-Rhonda, Capital Dodge
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T-Tim
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J-James Carriveau, President, Exact Interlock and Exact Properties
"One call to Oegema, Nicholson Associates is all it took. After our basement flooded, within a day or two they had a crew cleaning everything up, taking down the drywall and itemizing everything to be cleaned, thrown out or restored. They had everything in place for us in a timely manner and were extremely patient with me as they talked me through the process and waited for me to make decisions."
J-Jennifer Parks, Stittsville, Ontario
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C-Charlene Brunet, President, Dan Murphy Ford
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