The core: commercial general liability
CGL covers bodily injury and property damage to others arising from your work, including after the job is finished (completed operations). Most general contractors, property managers and commercial clients will not let you on site without proof of it. A $2 million per-occurrence limit is common, and some contracts ask for $5 million.
Your tools and equipment
A tools and equipment floater covers your tools on site, in transit and in storage. Watch for theft conditions, such as locked vehicle requirements, and low limits on individual items.
Your vehicles
Trucks and vans used for your trade usually need commercial auto coverage. Tools inside the vehicle are covered by the floater, not the auto policy.
Other coverage to consider
- Installation floater for materials before they are installed
- Professional liability if you design or advise
- Pollution liability for trades handling hazardous materials, such as mould or asbestos remediation
- Builder’s risk and wrap-up liability for larger projects. See construction insurance.
- Surety bonds for public and larger private contracts
WSIB is separate
Many construction businesses in Ontario must register with the Workplace Safety and Insurance Board. General contractors usually ask for a WSIB clearance certificate as well as your insurance certificate. Check your obligations with WSIB directly.
Read the contract first
The insurance clause in your contract tells you the limits, the additional insureds and the notice requirements you must meet. Send it to me before you sign, and I’ll confirm your coverage matches.
Prepare with my contractor insurance checklist.
This article is general information, not advice for your specific situation. Policy wording and insurer rules determine coverage.