Insurance Advice for Contractors and Builders
Whether you are a big project contractor, residential builder, general contractor, or a sub-trade, you realize every project is different and therefore, every insurance risk is unique. There are over 200 potential risks on every construction project, and many are not directly insurable. You need the right insurance coverage, at a competitive price, with a policy that makes sense with your business and project needs.
We know that your business and your customers can’t wait for unforeseen issues to clean themselves up, so isure gives you no-nonsense policies with a comprehensive breadth of options, and their brokers give you a full overview of risk management advice, that you simply won’t get from big-box insurance. Contact isure today for insurance for contactors and builders.
Who are Contractors and Builders?
- Small – 99% of the construction firms are less than 100 people; 61% are very small with 1-4 people.
- Top Five Building & Construction Sectors – #1 – Single-family Houses (General Contractors), #2 – Lumber/Building Material Dealers, #3 – Non-residential (General Contractors), #4 – Residential Buildings (General Contractors) and #5 – Painting/Paper Hanging.
How many Canadians?
- There are an estimated 139,000 construction firms and an additional 214,000 self-employed people in construction in Canada
Traits
- Challenges – four of the biggest challenges that builders and contractors face are: a shortage of skilled trades, sustainability and energy efficiency materials and standards, keeping up with technology/home automation and workplace safety.
- Industry Shifts – new project design and contracting methods, 3D printing, modularization, new and stronger materials, as well as more sophisticated customer choices are all reshaping the industry.
- Customer Scrutiny – with so much digital media, contractors are faced with much more customer detective work than the past, looking at real-life and digital word of mouth, history of complaints, enquiry on licenses, permits and insurance, multiple quotes and meetings, and checking out references.
- Veteran Savvy – the average age of people in construction is 41 years old, and has gone up 3 years over the past decade.
- Biggest Insurance Gaps – construction delays and defects, accidents by inexperienced or overworked employees, and poor bookkeeping are major construction insurance issues.
- Potentially Tragic Risks – construction workers suffer about 5 percent of work-related deaths, even though they make up less than 2 percent of the workforce. The most frequent fatalities result form: falls, falling objects, electrocutions and being caught between objects.
- Rollercoaster Business Ride – demand volatility can range up or down 60% from year-to-year and cost overruns and uneven cash flows are frequent.
- Construction Site Risks – given high prices for materials like lumber and copper, theft and vandalism of construction equipment and supplies have become costly for builders.
isure INSURANCE GUIDANCE FOR CONTACTORS AND BUILDERS
Construction
Construction can be hazardous, risky, and increasingly-regulated, with risks that require proactive solutions. Our team of brokers empathizes with the pressures you are under and try to understand your objectives and challenges to develop solutions that address your complex needs … in a non-complex way. Let us help you build from the ground up:
Commercial General Liability
Due to the nature of your operations, there is a heightened risk of causing injury or property damage to employees and third parties. Possible examples:
- Cutting power lines, disrupting service to other homes or businesses in the area
- Tools, power cords, and scrap posing trip hazards
- Falling tools, power cords, and scrap pose as tripping hazards
General Liability coverage makes sure you are protected while work is being done and after it is completed, from acts of god, human errors, accidents, malpractice or defective materials.
Commercial Automobile Liability
Ensuring owned and non-owned vehicles used for business purposes are properly insured and carefully operated.
Property Insurance
Covering items (tools and equipment) that might be kept at your home, in your vehicle or on a job site, and coverage for your business contents or a building such as your office location.
Contractor’s Professional and Protective Indemnity
Covers against any legal liability arising from professional activities or negligence.
Product Liability Insurance
Covers any injury to people or property from products supplied by the business, during or after a project is completed.
Equipment Breakdown Insurance
Most commercial property policies don’t cover accidental equipment breakdown, and with the cost of some construction equipment, this might need to be wisely added.
Contractors Pollution Liability
Covers direct damage or third party environmental damage and clean up, caused by pollution conditions resulting from the performance of work.
Commercial Umbrella Policy
Provides over-and-above limits to supplement those of a Commercial General Liability and Automobile policies, as well as additional liability coverage not contained in the general liability.