As a general contractor in Canada, you are responsible for ensuring that your projects are completed on time, within budget, and to the specifications agreed upon. But what happens if something goes wrong? That's where general contractor insurance comes in.
General contractor insurance is designed to protect you from financial losses that may occur as a result of accidents, injuries, or damage to property. It can also provide coverage for legal expenses if you are sued by someone who alleges that they were harmed as a result of your negligence.
There are a few different types of general contractor insurance policies available, so it's important to talk to a broker at Summit Commercial Solutions to determine which one is right for your business. But in general, these policies can provide valuable protection for your business. So if you're a general contractor, don't go another day without general contractor insurance.
So What is General Contractor Liability Insurance?
General contractor liability insurance is crucial for all businesses, big or small. In the unfortunate event that somebody sues you for bodily injury or property damage, this type of policy covers third-party expenses like property damage fees and medical bills. It also pays for attorneys’ fees if your client decides to take you to court.
The odds of something going wrong on a hectic construction site are not unreasonable. Accidents are unavoidable and occur every day. Workers who carry hefty materials up and down stairs, use risky equipment, and climb up and down ladders all day have an increased risk of accident. In fact, there were more than 5,000 fatal occupational injuries in Canada in 2022, with one out of five occurring in the construction sector. And that's just what happened in the country of Canada alone; it's likely to be much higher worldwide.
Some of the most frequent accidents consisted of people falling from heights, being hit by objects that fell, dirt caving in on someone, electric shock due to defective tool wiring, chemical injuries, exertion injuries and fire related incidents. Although it is true that subcontractors have their own liability insurance coverage, when a lawsuit generally occurs it involves all parties who were involved. And since you are the one who hired the subcontractor(s), usually you will be held just as responsible for any mishap.
Do General Contractors Need Property Insurance?
Not only do you need to protect your employees, but also your property. Your office stores valuable tools and materials that are essential for the success of your business. Protecting these items should be a top priority. A comprehensive policy can protect your tools when they are stored on the job site, and safeguard your office and belongings when stored at the workplace.
How Much Does Insurance Cost for General Contractors?
When it comes to pricing insurance, anytime you get into the subject, things can quickly become contentious. And this is due to the fact that there are so many variables involved in calculating insurance premiums. The first thing to know is that general contractors' insurance will almost certainly be more expensive than most other policies. Furthermore, because you are liable for subcontractors and their employees, the construction sector is considered higher risk by default. You may see for yourself how dangerous the job really is with these statistics (see above).
However, working with a highly skilled and committed broker may be able to assist you in lowering your costs. Keep in mind that when pricing insurance, factors such as the number of claims you've previously filed are considered. Some companies even consider the sort of work you do, the number of employees you have, how much money you make each year, and where you operate.
How to Craft the Perfect Policy for General Contractors?
Insurance is not simple to comprehend, but working with one of our experienced brokers from Summit Commercial Solutions may make the procedure a lot simpler. To begin developing and expanding the ideal package that will protect you and your business against all hazards, give us a call now.
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