Coverage offered in contractor insurance

As a contractor, you have access to coverage including:

• buildings and their contents;
• contractor tools and equipment;
• property on a job site or under construction;
• liability and subcontractor liability;
• theft or embezzlement of money;
• costs to maintain operations in case of a claim;
• four types of bonding;
• contractor auto insurance

You also benefit from:

• « all-risk » type guarantee for contractor insurance;
• replacement cost value;
• equipment breakdown guarantee;
• protection of business property temporarily away from premises—insured, client accounts, and important documents.

To these protections for construction contractor insurance, you can add various optional guarantees such as:

• model homes;
• flood on job site or in your buildings, sewer backup and overflow;
• earthquake.

Properly covering your construction sites, equipment, employees, and subcontractors is important.

Benefits of construction contractor insurance

24-hour emergency service and hassle-free claim settlement in case of a loss.
Competitive premiums and flexible payment terms (up to 24 months).
Option to pay by automatic withdrawal.

Are contractors required to have insurance?

There are many myths and misconceptions in the insurance sector. This is probably because insurance is so confusing and somewhat difficult to understand. Almost all contractors in Quebec, for example electricians, know that a policy for electrical contractors can protect them and may be required. Some don’t even know that there are a variety of different policies that can provide coverage in different areas. Contractors face various risks daily, and a single basic policy may not provide the necessary protection. This is why it is important to understand your business needs and the options available to you. This is especially true if your company’s roadmap aims to learn how to become an approved contractor for insurance company work, as they will only consider you if your company is properly insured or bonded.

Optimize your quotes with an insurance broker for construction risks

When it comes to construction projects, the inherent risks can be numerous and complex. Engaging an insurance broker specialized in construction risks can be the key to simplifying your quote process. Let’s discover how these professionals can assist you throughout the process:

In-depth understanding of specific risks

The construction sector presents unique risk challenges, whether in terms of worker safety, liability, or property damage. A specialized broker takes the time to understand in detail the specific risks associated with your construction project.

Access to specialized insurers for contractors

Construction risks often require specialized insurance policies such as wrap-up or project-specific coverage. A broker with expertise in this field has access to specialized insurers who understand the unique challenges of the construction industry. This ensures that your coverage is tailored to your specific needs.

Negotiation for competitive rates

Through their in-depth knowledge of the insurance market for construction risks, brokers can negotiate with insurers to obtain competitive rates. This can save you significant costs while ensuring adequate coverage.

Guidance throughout the quote process

The quote process can often be complex, with documents to complete and specific details to consider. An experienced broker guides you through this process, ensuring that all necessary elements are taken into account and that your contractor quote is complete and accurate.

Quick response to potential challenges

Construction projects can be subject to rapid and unforeseen changes. A responsive broker is essential to help you address these potential challenges. Their ability to respond quickly to changing needs ensures your coverage remains suited to your project’s evolution.

Engaging a specialized insurance broker in construction contractor risks is a wise strategy for optimizing your quote process. With their expertise, access to specialized insurers, and ability to negotiate effectively, these professionals provide you with peace of mind throughout the construction process.

Would you like to know the contractor insurance rates that Assur360 offers?

Feel free to complete the construction insurance request form.

Frequently asked questions — construction contractor insurance Quebec

Is liability insurance mandatory to obtain an RBQ license?

Yes. The Building Board of Quebec (RBQ) requires proof of liability insurance of at least $300,000 to issue or renew a construction contractor license. However, most insurers and project owners recommend a minimum of $1M to $2M to adequately cover the risks of modern construction sites.

What is builders risk insurance and when do I need it?

Builders risk insurance covers physical damage to work in progress—fire, vandalism, storm, theft of materials—during the duration of the construction project. It is often required by project owners and financial institutions financing the project. It can be taken out by the general contractor or the owner—clarify this responsibility in your contract before starting.

Must the subcontractors I hire have their own insurance?

Absolutely. Each subcontractor must hold their own liability insurance and provide you with a certificate of insurance before starting work. If an uninsured subcontractor causes damage on your site, you could be held jointly liable as the general contractor. Require up-to-date certificates for each subcontractor and keep them in your project file.

What happens if a client or bystander is injured on my job site?

Your commercial liability insurance covers claims for bodily injury caused to third parties on your job site. Report the incident to your broker immediately. Document the scene, witnesses, and circumstances. Do not admit fault before consulting your insurer. Job sites must be secured according to CNESST standards to prevent the insurer from invoking negligence.

Does my insurance cover property damage caused by my work at a client’s location?

Yes, commercial liability insurance covers accidental damage to a client’s property during your work—for example, if you damage a pipe while digging or if your work causes water infiltration. Completed Operations coverage covers claims that arise after work is completed, for defects related to your performance.

Are tools and equipment stolen on a job site covered?

Yes, with the right coverage. Contractor equipment insurance (sometimes called Inland Marine or Equipment Floater) covers tools and equipment on the job site, in transit, and in storage. It is separate from builders risk insurance. Keep an updated inventory with serial numbers and retain your purchase receipts to facilitate claims.

Should job site vehicles—trucks, heavy machinery—be insured separately?

Yes. Vehicles that travel on public roads must be insured in accordance with the Highway Safety Code. Job site equipment (excavators, cranes, telehandlers) that do not travel on roads are insured differently—under a machinery or mobile equipment policy. Both types of vehicles can be grouped in a coordinated commercial program managed by your broker.

How does the deductible work in construction contractor insurance?

The deductible is the amount you pay toward each claim before your insurer steps in. In construction, typical deductibles range from $1,000 to $10,000 depending on coverage. A higher deductible reduces your annual premium—relevant if you rarely have small claims. For builders risk claims, deductibles may be higher.

Should my insurance change depending on whether I work in residential or commercial?

Yes, risks and requirements differ. Commercial work often involves public or institutional project owners requiring higher coverage limits ($2M to $5M) and may require bonds. Residential projects are subject to new home warranty (GCR) if you build new homes. Inform your broker of the type of work you perform.

Does builders risk insurance cover a single project or the whole year?

Both options exist. Project-specific insurance covers a particular job site from start to finish of work—ideal for large one-time projects. An open annual policy covers all your active projects simultaneously up to a certain value limit—better suited to busy contractors with multiple concurrent projects. Your broker can model which option is most cost-effective based on your business volume.