Builder’s Risk Insurance in Ontario
Contractors Insurance is a top-notch commercial insurance brokerage in Ontario. We focus on providing customized insurance plans for contractors, professionals, and tradespeople so that they get the coverage they need. This includes builder’s risk insurance in Ontario.
Builder’s risk insurance is a must-have for contractors who are working on an unfinished structure or a building under construction as they are exposed to numerous external factors that can cause damage. It covers the cost of such damages while also insuring (to an extent) the tools and equipment used in construction.
We have helped various contractors with their builder’s risk insurance, among other insurance needs. At Contractors Insurance, you can be sure you’re in good hands!
What Is Builder’s Risk Insurance?
Builder’s Risk insurance is also known as Course of Construction insurance. This type of insurance is a must-have for all contractors who are involved in constructing structures from scratch or renovating existing structures that are exposed to various external forces.
The builder’s risk insurance cover the following:
Damage/Theft/Vandalism to the Building Under Construction and Its Materials
A building under construction, along with the materials/fixtures involved in its construction, is prone to incidents of theft and vandalism. Furthermore, damage can also be sustained from fire, explosions, lightning, hail, hurricanes, and the like. Hence builder’s risk insurance will protect your business and provides you with personal property coverage, commercial property insurance and so on. Mostly it covers the consequential losses in construction projects on job sites.
Whether the tools/equipment are on-site, on their way to the site, or are located elsewhere but are involved in the project, builder’s risk insurance will cover the replacement/repair costs if the tools/equipment are damaged by external forces or are stolen.
Damage/Theft to Scaffolding and Temporary Structures
Builder’s risk insurance can also cover the consequential loss your business will suffer in case scaffolding or any part of temporary structures are stolen or damaged by external forces.
Demolition and Cleanup Costs Due to Damage
If the damage sustained by a project under construction would need demolition and/or extensive cleanup, the builder’s risk insurance in Ontario can cover these costs.
Additional Soft Costs Associated with Delays
Builder’s risk insurance will also protect your business from soft costs that may not be directly related to construction but are the results of the project’s delay which are connected to damage, vandalism, or theft. These soft costs can include lost sales and rental income.
Who Can Benefit From Builder’s Risk Coverage?
Builder’s risk insurance will benefit you if:
- You are involved in the construction of structures or renovations that are exposed to external perils;
- You use temporary structures in your construction work that may need to be left at the site for extended periods; or
- Damage and delays to your project will mean additional soft costs (e.g. lost sales, lost rental income).
The above qualifiers also equate to risks of damage, theft, or vandalism resulting in financial losses of thousands to hundreds of thousands of dollars. We have helped various contractors and project owners in setting up the best builder’s risk insurance for them to avail of comprehensive protection, along with other needed additional coverages. If you have any questions about builders’ risk insurance in Ontario or if you’d like to get started, we’re here to help.
Why Ontario Contractors Need This Insurance Type
Buildings and projects under construction, as well as the materials, temporary structures, and tools needed for construction, are exposed to various external risks. Damage from the elements, accidents, theft, and vandalism will not only cause delays but can also bring surprise costs that could potentially bankrupt your company. So it is important to ensure that each of those factors is specifically insured before you begin construction.
Builders Risk Claims Examples
Claims Example #1
A strong, sudden hurricane sweeps through the building under construction and causes damage to parts of the building and the materials.
Builder’s risk insurance covers the total cost of cleanup, new materials needed and redoing work which amounts to a total of $25,000.
Claims Example #2
The scaffolding that you own and are using for the course of construction is stolen – an investigation is underway but you need scaffolding to continue with the project.
The builder’s risk insurance covers the total scaffolding replacement cost of $8,000.
Claims Example #3
Damage to a mid-rise apartment building under construction causes a one-month delay translating to additional soft costs in the form of lost rental income.
Builder’s risk insurance will cover the soft costs totalling $60,000.
Leading Provider of Builder’s Risk Insurance in Ontario
Contractors Insurance is able to create and nurture strong client relationships because of our dedicated, customer-centric approach. In order to provide the best experience possible to our clients, we offer the following benefits:
Personalized Insurance Plans
Without unnecessary and costly riders you only pay for the coverage that you need. We can help you set up your builder’s risk insurance and recommend additional coverage that will truly benefit your business with expert advice.
Utmost Transparency on Coverage and Limitations
Enjoy full transparency as we walk you through how your insurance policy works, what the triggers are, what limits/exclusions there are, and so on. From here, we can also make adjustments to your insurance plan so that you have the coverage that will give you the most peace of mind.
Thorough and Straightforward Insurance Education
We make it a priority to be clear and comprehensive to all the clients we serve. In doing so, we avoid confusing jargon as we explain everything our clients need to know about insurance. When we’re on the same page with clients, only then can we make sure that we are able to personalize their insurance plans properly, taking into account their valuable inputs as well.
Frequently Asked Questions About Builders Risk Insurance
The cost of the builder’s risk insurance would mainly depend on the value of the project once completed. On average, this type of insurance policy will cost around 1 to 4% of the completed value of the structure.
The builder’s risk insurance covers the entire construction process, the unfinished structure and the tools and materials needed for the project. Meanwhile, construction equipment is focused on just that: tools and equipment. You can talk to an insurance expert from our team to find out which insurance type is more fitting for your business needs.
Builder’s risk insurance is not required by Ontario law. However, many contractors opt for this insurance plan because of its broad coverage and because it helps in reassuring potential clients that a project will progress with this kind of support in case unforeseen events or physical damage occur.
Ready to Get the Coverage You Need?
Contractors Insurance is a leading insurance brokerage firm based in Toronto. We specialize in assessing risks faced by businesses as well as independent professionals; from here, we are able to put together an effective, tailor-fit insurance program that businesses and professionals can truly rely on.
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