Contractor Liability Insurance
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Work with Confidence with Contractor Liability Insurance | Quick Online Coverage
As a contractor, you’re held to a high standard when it comes to delivering your service or advice. If a client files a claim because they believe you’ve cost them financially due to your mistakes, there’s a good chance you could be sued. Whether you’ve done anything wrong or not, you’ll still need to cover the costs of litigation.
Unfortunately, Commercial General Liability Insurance policies (CGL) don’t cover financial loss claims. That’s where Liability Insurance for contractors comes in.
If you’re sued by a third party or client due to a perceived or actual mistake causing additional financial costs, EasyCover can help protect you with Contractors Insurance.
We make getting contractor liability insurance easy:
- Enter your information for a free Contractor Professional Liability Insurance quote
- Select the policy features and limits that work for you.
- Pay for it online.
It’s direct, simple, and quick. In just under 5 minutes, you can work with confidence with your Contractor Liability Insurance Policy.
The Basics of Contractor Liability Insurance
If you’re hired on as a contractor, you’re likely there to perform a specific, often specialized, job or service. You may produce a product or maybe you provide advice.
If a third party or your client claims you’ve failed to deliver, made a mistake, faulty installation, or cost them financially, they may sue you. Regardless of who’s at fault, you’ll have to deal with the litigation process.
As a professional, you may be required to purchase liability insurance for contractors to cover yourself in case any lawsuits should arise claiming malpractice, negligence, or error.
Professionals may also be asked by clients or other stakeholders to provide proof of insurance. Certain professionals may be required to carry a certain minimum amount of Contractors Professional Liability Insurance to operate.
What does Contractors Insurance cover?
Contractor General Liability Insurance helps cover damages, legal expenses, or settlements for claims or unforeseen events that fall under the policy conditions, which exclude deliberate dishonesty, misrepresentation or fraud. As litigation costs can quickly escalate, this coverage is critical if you’re a contractor.
What Factors Affect Liability Insurance for Contractors?
The amount of Liability Insurance for Contractors depends on:
- Your industry
- The number of clients you have
- Who your clients are
- The size or value of your contracts
- The potential size of a legal claim that could be made against you
- Your contractual requirements
The Cost of Contractor Liability Insurance
You can choose between a $1 million, $2 million and $5 million contractors liability coverage limit. This is the most that will be paid out over the 12-month policy period, regardless of how many claims you make. This includes judgement awards, settlement, and defense costs.
- The average price for contractors’ liability insurance begins at around $850 per year with the standard amount of $2,000,000 liability protection.
- For higher coverage limits of around $3,000,000 liability rates can be around $1100 per year or $1350 per year for a $5,000,000 liability.
- For example, your average photographer might pay around $500 per year for contractors’ liability insurance.
Your deductible will depend on your company’s revenue, ranging from $250 to $1,500 per claim. You’ll need to pay a deductible for each claim, i.e. if you have two claims, you’ll pay the deductible twice.
Keep in mind you won’t be covered for deliberate fraud, dishonesty or misrepresentation and not all scenarios are covered. If you fail to advise your insurance company of a known incidence that could likely result in a claim, you may also not be covered. For example, let’s say you made a mistake that results in a delay for a project. You should let your insurer know, even if it doesn’t escalate to a lawsuit. Sometimes being served comes as a complete surprise, but often you know ahead of time that there is a risk. Communication is key!
Examples of Contractor Liability Insurance
Negligence or Errors: If you make a mistake while performing your professional contractor duties, you can be sued by your client or a third party. This can be as minor as forgetting a small detail that delays a project or a big mistake that costs millions of dollars to repair.
Misrepresentation: Your client may feel your advice is inaccurate or misleading. They could sue you for providing this faulty information.
Loss of Documents: Losing your client’s documents would be a headache at best, and at worst, you could be taken to court.
These are just a few scenarios you could encounter as an independent contractor. EasyCover can help protect you from these events and more. Don’t wish you were covered, Get a Liability Insurance for Contractors today!
What types of Contractor Liability Insurance are available
There are many different types of Contractor Liability Insurance that are available. Depending on your business and industry, these coverages are essential to help safeguard your equipment, team, and even your reputation against certain losses.
- Business liability
- Commercial auto
- Property insurance
- Equipment breakdown
- Cyber insurance
Accidents do happen. It is important to assess the risks that your business may expose you to and prepare accordingly with the right Contractor Liability Insurance.
Who needs Liability Insurance for Contractors?
Contractor General Liability Insurance may help protect a wide range of contractor-based professions from claims arising from bodily injury or property damage that occur while undergoing a contract job. This coverage may offer reimbursement for settlement costs or lawsuit expenses that could arise even after the project is completed. So, who needs Liability Insurance for Contractors?
- General contractors
- Subcontractors
- Property owners of a construction project
Subcontractors are often required to carry their own insurance by the General Contractor who would want to ensure their own insurance will not be depleted by a subcontractor’s mistakes.
Is it mandatory to have Contractor Liability Insurance?
Short answer, yes. In most provinces contractors are legally required to carry a certain minimum limit of liability insurance, or your hiring party will ask for proof of insurance before deciding to work with you. Contractor Liability Insurance is designed to protect both you and the customer if anything happens on the job or after the project is finished. We bring you the best deals from esteemed insurance providers. Contact us now.
Suggested Contractor Liability Insurance Coverage
To ensure proper coverage for yourself as a contractor, it is suggested to have the following types of insurance:
- General Liability Insurance: The CGL Insurance is crucial for protecting your business against any claims made by third parties for property damage or bodily injuries that may occur on your premises or as a result of your business operations.
- Professional Liability Insurance: Also known as Errors and Omissions Insurance, this is particularly important for businesses that offer professional services or advice. It covers claims made against your business for mistakes, negligence, or failure to deliver a service as promised.
- Commercial Auto Insurance: Commercial Auto Insurance is essential for businesses that use vehicles for commercial purposes. This insurance covers damage or loss of vehicles used in conducting business, as well as liability for bodily injuries or property damage caused by those vehicles.
- Property Insurance: This insurance is vital for protecting your business premises and its contents against risks like fire, theft, and natural disasters. It covers the repair or replacement costs of your equipment, inventory, and property in case of damage or loss.
- Cyber Insurance: In an era where digital threats are prevalent, Cyber Insurance provides a safety net against the financial implications of cyber attacks and data breaches. It covers expenses related to recovery, legal fees, and any compensation that may be required.
- Builders Risk Insurance: Specifically designed for construction projects, this Builders Risk Insurance covers the structure and materials from damage or loss during construction. It’s essential for managing the risks associated with building projects.
- Workers’ Compensation: This insurance provides financial assistance and medical care for employees who suffer work-related injuries or illnesses. It’s a mandatory requirement in many places, ensuring that employees are protected in case of workplace accidents.
- Tools and Equipment Insurance: For businesses that rely on specialized tools and equipment, this insurance covers the loss or damage of such items. It ensures that a business can quickly replace or repair critical tools and equipment without significant financial burden.
Contractor Professions We Cover
- Construction
- Architects
- Contracts manager
- Fire auditors
- Health and safety
- Maintenance manager
- Operations manager
- Project manager
- Engineers
- Engineering
- Finances
- Analysts
- Bookkeepers
- CPA
- Compliance
- Controllers
- Payroll
- Treasury
- Regulatory reporting
- Forensic services
- Health professionals
- Acupuncture
- Audiologist
- Counsellors
- Dance instructors
- Dieticians
- Health coach
- Hypnotherapist
- Life coach
- Meditation
- Nutritionist
- Occupational therapist
- Personal trainers
- Physiotherapist
- Pilates instructors
- Psychologist
- Reflexologist
- Registered massage therapists
- Speech pathologist
- Yoga instructors
- Zumba instructors
- IT contractors
- CRM systems
- IT facilities management
- IT hardware consultant
- IT hardware or software sale and supply
- IT network architect
- IT outsourcing consultant
- IT program manager
- IT project management
- IT security consultant
- IT software development, consultant or programmer
- IT analyst
- IT system designer
- IT training
- Network communication consultants
- PC/IT network support
- SEO consultant
- Telecommunications
- Website designer
- Legal services
- Media
- Advertising consultants
- Marketing consultants
- Photographers
- Website designer
- Graphic designer
- Editors
- Writers
- Market research
- Interior designers
- Project Managers
- Social Services
We offer liability insurance for contractors in a variety of industries – if yours isn’t listed here, don’t worry. Chat with us and we’ll see what we can do!
How much Contractor Liability Insurance should I have?
The amount of coverage depends on the nature and size of your business, who your clients are, as well as a number of other factors, including:
- Does your business transport equipment or travel in the course of providing services?
- Does your business provide financial advice or service? Contractors Professional Liability Insurance may be necessary for these professional business-specific risks.
- What is the scope of your projects or services? Are your clients individuals, small businesses or large corporations?
- Do you do manual work or manage projects?
Risk Management for Contractors
While Contractor’s Insurance is there if you need it, it is best to avoid litigation altogether. EasyCover’s contractor liability insurance protects you if your risk management isn’t enough. Our coverage is comprehensive and affordable.
We make it easy for you to protect yourself. Get a free contractor liability insurance quote from our online quote in less than 5 minutes!
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Communication
Making sure everyone is on the same page when it comes to expectations and progress is important. Open and honest communication can go a long way. Ask questions and clarify if you’re not sure about something.
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Record Keeping
Keep written record of all communication. Follow up an in-person meeting with an email confirming what was discussed. You should also keep backup copies of all paperwork, receipts, and communications. A digital cloud copy is also a necessity. In the event you are sued, this could be important evidence.
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Quality Control
Implement procedures to ensure quality. For some things, this may be having multiple eyes go over something before it’s delivered. For others, it might be following a specific check list for each install. Double-check the deliverable against the expectation.
FAQ’s: Liability Insurance for Contractors
General contractors need it to protect themselves, their business operations, and their clients from financial losses in the event of accidents, injuries or property damage on a construction project. This can help cover legal fees, medical bills and property or construction site repairs, preventing costly lawsuits and potential bankruptcy.
Additionally, many hiring parties or governing bodies require proof of insurance before choosing to work with a general contractor.
The cost of insurance for independent contractors in Ontario varies depending on the type of work they do and their level of risk. Generally, the price for for independent contractor can start at around $850 per year for $2,000,000 coverage and may increase for higher coverage limits or more high-risk professions.
It is recommended to speak with an insurance provider to get a personalized quote based on your specific needs and risks.
The cost of business liability insurance in Ontario depends on various factors such as the type of business, its size, and its level of risk. On average, small businesses can expect to pay around $500-$1000 per year for general liability insurance with a coverage limit of $1 million. This cost may increase for higher coverage limits or businesses in high-risk industries.
Builder’s risk insurance in Ontario is a type of property insurance that provides coverage for damage or loss to a construction project during its construction.
This can include coverage for materials, equipment, and supplies on-site, as well as any completed work that may be damaged before it is turned over to the owner. It also typically covers damages caused by natural disasters or accidents on the job site.
Any individual or business that provides services as a contractor may benefit from having contractor insurance in Canada. This includes general contractors, sub-contractors, and independent contractors in various industries such as construction, IT, marketing, and more.
Insurance can help protect against financial losses in accidents, third-party injuries, or property damage during their work. Additionally, many clients or governing bodies may require proof of insurance before working with a contractor. So, contractors must have liability insurance to protect themselves and their clients.
Business insurance typically refers to a broad range of insurance products that are designed to protect businesses from financial losses, such as property damage, liability claims, and business interruption.
On the other hand, contractor insurance is a specific type of business insurance tailored toward contractors’ unique risks and needs. This can include coverage for accidents or damages on job sites, professional errors or omissions, and more.
It depends on the specific policy and coverage options chosen by the contractor. Some contractor insurance policies may automatically cover subcontractors, while others may require an additional endorsement or separate policy to cover subcontractors.
It is important to carefully review the contractor insurance policy and discuss any questions or concerns with their insurance provider to ensure that all parties involved are adequately covered.
In some cases, subcontractors may also be required to have their insurance coverage to work on a construction project.
Yes, most contractors’ insurance policies include coverage for property damages. This can include damages to the property of others, such as a client’s home or business, caused by accidents or errors on the job site. It may also cover damages to materials and equipment used in the construction project
Contractor equipment and tools coverage is a type of insurance that protects the tools and equipment used by contractors for their work. This can include coverage for damages, theft, or loss of equipment on the job site or during transportation.
It can also cover the cost of renting or replacing necessary damaged equipment. This coverage is important for contractors as their tools and equipment are essential for their work and can be expensive to replace.
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