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Contractors All Risk Insurance

Contractors Insurance, a leading commercial insurance brokerage, is dedicated to providing contractors and professionals the comprehensive protection they need.

As a contractor, you’re exposed to numerous risks that can jeopardize your projects and financial stability. All Risk insurance provides comprehensive coverage for property damage, liability claims, and business interruption.

Compared to your run-of-the-mill insurance company, Contractors Insurance specializes in providing tailored insurance solutions for Ontario contractors. Our team is committed to helping you navigate the complexities of insurance and find the right policies to protect your construction business.

What Is Contractors All Risk Insurance? 

Contractors All Risk insurance is designed to protect construction projects from unexpected events. It typically covers a wide range of risks, including physical damage caused by fire, theft, vandalism, natural disasters, accidents, and legal disputes. By investing in this type of property insurance, construction and trades professionals can reduce risks, protect their projects, and safeguard the well-being of their workers.

What is Contractors All Risk Insurance Coverage? 

Here are some risks covered when you purchase a Contractors All Risk insurance policy:

  • Property Damage: This includes damage to materials, equipment, structures, and temporary works caused by fire, natural disasters, theft, vandalism, and accidents.
  • Liability Claims: Construction all risk insurance covers legal expenses and damages arising from injuries or property damage caused by the contractor’s operations. This includes liability to employees, subcontractors, members of the public, and property owners.
  • Business Interruption: Compensates for lost income or additional expenses incurred due to project delays or disruptions caused by covered events. This can include costs related to hiring temporary staff, renting replacement equipment, or securing alternative workspaces.
  • Third-party Property Damage: Contractor all risks insurance covers damage caused to property belonging to others, such as neighbouring buildings or passing vehicles. This can include damage to infrastructure, utilities, or personal property.
  • Equipment Breakdown: Protects against losses due to breakdown or failure of construction equipment. This can include mechanical, electrical, or hydraulic failures.
  • Delay in Completion: Builder all risk insurance covers additional costs incurred due to delays in project completion caused by covered events. This can include costs related to extended labour, increased material costs, or penalties imposed by the project owner.
  • Professional Liability: Protects against claims arising from errors, omissions, or negligence in the contractor’s professional services. This can include claims related to faulty design, incorrect specifications, or breach of contract.

What Isn’t Covered by Contractors All Risk Insurance? 

An all risk insurance policy specifically lists the exclusions rather than the inclusion, implying that everything not listed is covered. While the list differs per project, here are common exclusions mentioned in an all risk policy:

  • Accidents in the workplace
  • Wear and tear
  • Earthquakes
  • Infestation
  • Intentional acts

Who Needs Contractors All Risk Insurance?

Here are some examples of specific clients who may benefit from an all-risk insurance policy:

  • General Contractors: General contractors oversee the entire construction project. A contractor all risks insurance policy can help mitigate financial losses due to accidents, natural disasters, theft, or other unforeseen events.
  • Subcontractors: With a builder all risk insurance policy, subcontractors performing specialized tasks in a construction project are protected from the costs of replacing damaged equipment due to accidents or property damage.
  • Homebuilders: A construction all risk insurance covers the costs of materials, labour, and potential damages during the construction process. For home builders, this means protection from losses due to construction defects, natural disasters, or unforeseen delays.
  • Commercial Builders: With an all risk insurance, property developers can safeguard their commercial projects, such as offices, retail spaces, or industrial facilities against losses due to construction defects, delays, or damage caused by unforeseen events.
  • Property Owners: Owners renovating their properties can protect their buildings with a contractors all risk insurance policy covering construction costs and potential damages due to accidents, construction defects, or unforeseen delays.

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Ontario Contractors All Risk Insurance Claims Examples

Claims Example #1
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    A construction site in Ontario was damaged by a winter storm, resulting in ice dams forming on the roof and causing water damage to the interior.

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    The builder all risk insurance policy covered the costs of removing the ice dams, repairing the roof, and mitigating the water damage, estimated at $25,000.

Claims Example #2
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    A theft occurred on a construction site, resulting in the loss of valuable tools and equipment.

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    The construction all risk insurance policy covered the cost of replacing the stolen items, estimated at $10,000.

Claims Example #3
  • Problem Icon

    A fire broke out on a construction site due to a lightning strike, causing extensive damage to the building under construction.

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    The contractors all risk insurance policy covered the cost of rebuilding the damaged structure for the insured parties, estimated at $150,000.

Leading Provider of Contractors All Risk Insurance in Ontario

At Contractors Insurance, we’re committed to providing exceptional service and tailored insurance solutions for contractors in Ontario. Our dedicated team of experts offers the following benefits to ensure you receive the best possible coverage:

Personalized Insurance Plans

We understand that every contractor’s needs are unique. That’s why we work closely with you to create customized contractors all risk insurance policy from a variety of insurance providers that perfectly suits your business. You’ll only pay for the coverage you need, without unnecessary riders or excessive costs.

Utmost Transparency on Coverage and Limitations

We believe in open communication and transparency. Our team will explain your insurance policy in detail, outlining the specific coverages, limitations, and exclusions. 

Thorough and Straightforward Insurance Education

We’re dedicated to helping you understand your insurance coverage. Our team will provide clear and concise explanations, avoiding industry jargon.

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Frequently Asked Questions About Contractors All Risk Insurance

The contractors all risk insurance cost varies depending on factors like project value, location, type of construction, contractor’s experience, and coverage limits. However, average costs can range from 1% to 4% of the completed project value.

Contractors all risk insurance is essential for any construction professional involved in building or renovating structures, including general contractors, subcontractors, homebuilders, commercial builders, and property owners.

While both contractors all risk insurance and general liability insurance cover certain aspects of a contractor’s operations, they are not the same. The former includes coverage for damages not just from contractors but unforeseen accidents such as natural disasters, civilian accidents, theft, etc. while the latter only covers damages done by the contractor.

In many cases, contractors will need both CAR and GL insurance to ensure they are adequately protected against a wide range of potential risks. It’s important to consult with an insurance professional to determine the specific coverage you need for your business.

Why Choose Contractors Insurance?

At Contractors Insurance, we specialize in providing tailored insurance solutions for contractors in Ontario. 

Our deep understanding of the unique risks and challenges faced by the construction industry allows us to find you comprehensive coverage from a trusted insurance provider that meets your specific needs. With years of experience and a proven track record, our insurance brokers will provide exceptional service, competitive rates, and expert guidance to help you navigate the complexities of insurance and protect your business.

To find out more about our comprehensive insurance policy choices and to get a quote, contact us today.

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