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Builders Risk Insurance

Contractors Insurance, an award-winning commercial insurance brokerage in Ontario, is here to help contractors and professionals protect themselves. As a contractor, you’re exposed to project risks that can lead to business interruption and financial losses. Claims can result in legal fees and legal fees. Builders risk insurance protects you and your construction project from these risks and liabilities.

At Contractors Insurance, we specialize in providing tailored insurance solutions for contractors in Ontario. Our expert team can help you find the right coverage to safeguard your investment and minimize liability.

What Is a Builder’s Risk Insurance Policy? 

Builders insurance is a specialized property insurance designed to protect construction projects from unforeseen events. It covers repairing or replacing materials, equipment, and damaged or destroyed structures during construction. It’s a specialized policy crucial for construction and trades professionals as it protects against losses caused by accidents, natural disasters, vandalism, and other risks.

What Does Builder’s Risk Insurance Cover? 

Builder’s risk insurance covers any damage or issue with the items below:

  • Materials: The builder’s risk policy covers the cost of replacing or repairing building materials, such as lumber, concrete, steel, and fixtures, whether stored on-site, off-site, or in transit.
  • Equipment: Building risk insurance protects against losses from damage or theft of construction equipment, including tools, machinery, and vehicles. This includes both owned and rented equipment.
  • Structures: Insurance for builders, like commercial property insurance, covers damage to the building under construction, including the foundation, walls, and roof. This protects against losses caused by accidents, natural disasters, vandalism, and other perils.
  • Improvements: Builder’s risk insurance covers the cost of replacing or repairing improvements made to the property during construction, such as landscaping, electrical systems, or plumbing.
  • Loss of Use: In some cases, an Ontario builder’s risk insurance may provide coverage for loss of income if your construction projects are delayed due to covered losses. This can help mitigate financial losses if the project can’t be completed on time.
  • Demolition and Debris Removal: Covers the cost of demolition and removing debris and contaminants from the construction site following a covered loss.
  • Installation Floaters: Can be added to your builders risk insurance to cover materials or fixtures that will become a permanent part of the structure. This is especially important for valuable or specialized materials.

What Is Not Covered by Builders Insurance? 

These exclusions may vary depending on the specific policy, but some common examples include:

  • Pre-existing damage due to poor workmanship, defective designs, or building errors 
  • Ordinance or law
  • Wear and tear
  • Earthquakes (may be excluded or subject to limitations)
  • Flood (can be added)
  • Consequential losses
  • Intentional acts

Who Needs Builder’s Risk Insurance? 

Here are some examples of people who benefit from builders insurance:

  • General Contractors: Responsible for overseeing the entire construction project, general contractors need builders risk insurance and business insurance to protect their investment in construction materials, equipment, and structures.
  • Subcontractors: Specialized contractors who perform specific tasks within a construction project, such as plumbing, electrical, or HVAC work, should also have builders risk insurance Ontario to protect their equipment and liability.
  • Homebuilders: Builders constructing new homes or remodelling existing properties should have building risk insurance to cover the costs of materials, labour, and potential damages during construction.
  • Commercial Builders: Developers constructing commercial buildings, such as offices, retail spaces, or industrial facilities, need a builders risk policy to protect their investment in the project.
  • Property Owner: Property owners undertaking major renovation projects or additions to their existing buildings may require builders’ risk insurance and personal property coverage to cover construction costs and potential damages to the job site.

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Ontario Builder’s Risk Insurance Claims Examples

Claims Example #1
  • Problem Icon

    A construction worker accidentally dropped a heavy tool from a high floor, damaging a newly installed window in the building.

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    The builder’s insurance policy covered the cost of replacing the damaged window and any associated repairs, estimated at $5,000.

Claims Example #2
  • Problem Icon

    The scaffolding you’re using for your construction job is stolen. An investigation is already underway, but you need new scaffolding to continue the project.

  • Outcome Icon

    Your commercial builders’ risk insurance covers the total scaffolding replacement costs worth $8,000.

Claims Example #3
  • Problem Icon

    Damage to a mid-rise apartment building under construction causes a one-month delay, resulting in additional soft costs in the form of lost rental income.

  • Outcome Icon

    Your specialized builders risk insurance Ontario will cover the soft costs, totalling $60,000.

Leading Provider of Builder’s Risk Insurance in Ontario

At Contractors Insurance, we nurture strong client relationships through our dedicated, customer-centric approach. We offer all our clients the following benefits to guarantee the best possible experience working with us:

Personalized Insurance Plans

You only pay for the coverage you need without unnecessary and costly riders. We can help you set up your builder’s risk insurance Ontario and recommend additional liability insurance coverage for your business.

Utmost Transparency on Coverage and Limitations

We’ll walk you through how your insurance policy works, what triggers a claim, and its limits and exclusions. We’ll adjust your insurance plan accordingly so your builder’s risk coverage gives you the peace of mind you deserve.

Thorough and Straightforward Insurance Education

We prioritize clarity and thoroughness, ensuring our clients understand everything they need to know about their policy without confusing jargon.

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Frequently Asked Questions About Builder’s Risk Insurance

The cost of a builder’s risk insurance policy depends on the value of the completed project. On average, a commercial builders risk insurance Ontario cost will hover around 1 to 4% of the completed value.

A builder’s risk insurance policy is not required by Ontario law. However, many contractors opt for this liability insurance plan because of its broad coverage. It also helps reassure property owners that a project will progress amid unforeseen events.

The basic builders risk policy provides coverage for the damage or loss of equipment, materials, structures, and legal fees during the construction process.

Why Choose Contractors Insurance?

Contractors Insurance specializes in providing tailored insurance solutions for contractors and the construction industry who need builders’ risk insurance. Our deep understanding of the unique risks and challenges faced by Ontario contractors allows us to offer comprehensive coverage that meets your specific needs.

With years of experience working with contractors and construction professionals, we have a proven track record of providing exceptional service and competitive rates. Our team of experts can help you navigate the complexities of insurance and find the right policies to protect your business.

Contact us today to learn more about our insurance options.

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