As a building contractor, you are exposed to some enormous risks. Construction sites involve risks ranging from working with volatile materials and hazardous chemicals to working at a height or in confined spaces. Whether you're a general contractor, sub-contractor or a construction tradesperson, we have specialized policies for construction insurance in Calgary that manage your risk and protect your company, your employees, your equipment and your building materials.
Krywolt Insurance can assess your business and provide you with a comprehensive no-obligation quote for your construction insurance. Calgary contractors, call our reliable team of brokers today to find out more about contractor insurance that is custom-built for your business.
What is Construction Insurance?
Building contractor insurance or construction insurance is a type of business insurance package that is tailored to meet the needs of construction contracting professionals in a general sense, and also specifically the insurance needs of the individual policyholder who requires construction insurance. Calgary general contractors need insurance packages that typically include various types of liability coverage that can get you the insurance compensation necessary to pay for costs such as legal defence fees and settlement expenses should you be sued for causing property damage or bodily injury, or in some cases, financial or reputational harm. It will also include property coverage to give you financial assistance with the cost of building restoration and replacement for equipment and tools in the event that your commercial property or equipment is damaged or destroyed by an insured peril such as theft, vandalism, fire or natural disasters.
Who Needs Construction Insurance in Calgary?
Anyone who is working as a building contractor in any capacity needs the protection against financial loss that is afforded by proper construction insurance. Calgary insurance brokers will tell you this coverage is necessary for general, commercial, residential and industrial building contractors alike. That includes both independent contractors and contracting companies across a wide range of industries and specializations, such as:
- General contractors
- Framing
- Roofing
- Insulation
- Drywall
- Flooring
- Finish carpentry
- Masonry
Regardless of the specific type of construction work that you do, your work leaves you exposed to certain risks that could lead to the destruction of your property or costly litigation and legal settlements.
What Types of Coverage Are Included With Construction Insurance in Calgary?
There are some standard types of insurance coverage, such as commercial general liability and commercial auto insurance, that are necessary for pretty much every building contractor insurance package. However, there are also a number of more specialized types of coverage for construction insurance Calgary contractors may need or want, depending on a wide range of factors such as their location, the exact type of work they do, and much more. Here are some types of coverage that you should be aware of when considering construction insurance. Â
Builders Risk Insurance
Also known as "course of construction" insurance, builder's risk insurance is an important addition to construction insurance. Calgary contractors need builders risk coverage to protect them against unexpected restoration, rebuilding or replacement expenses should the building or construction site they are working at suffer damage, destruction, theft or vandalism while it is being renovated or constructed.
This type of coverage is typically a named perils policy, meaning it offers coverage for the specific risks that are outlined on your policy—in other words, the "named perils." That can vary significantly based on your individual insurance needs, but it typically includes perils such as natural disasters, flooding, extreme weather patterns, fire, explosions, impacts from heavy machinery, and other potential problems such as vandalism or theft. Â
Often, property owners will purchase builder's risk coverage to ensure that their building is protected in the scenarios above, but some property owners will expect the contractor to have builders risk insurance that is capable of covering those expenses. It's important to clarify what exact coverages a property owner has before beginning work, and make sure you have the necessary protection against financial loss with the right coverage on your construction insurance. Calgary builders can contact their Krywolt Insurance broker at any time for help determining which types of coverage they need for any given project.
Contractors Pollution Liability Insurance
You may not always work with toxic substances that have the potential to cause environmental destruction, but chances are you do have to handle toxic materials from time to time—and the reality is that even something that may seem environmentally benign, like gravel, can cause a polluting event if it ends up somewhere it's not supposed to be. Pollution legal liability insurance is a highly-recommended addition to any construction insurance. Calgary contractors require this type of insurance because it covers the expenses that can arise from either a sudden or slow pollution event, such as suddenly spilling a container of toxic liquid or a slow chemical leak that goes unnoticed for a period of time.
For example, you could be working with excavation equipment or other heavy machinery on your client's property and not realize that the machine has a leak in its fuel line. By the time you notice what's happening, gallons of fuel have spilled out and soaked into the soil, causing environmental contamination. Another example is if you're working on a residential construction on a hill overlooking a protected wetland area and your subcontractor dumps a truckload of gravel too close to the bank, causing a good portion of it to roll down the hill into the river below where it pollutes the protected waterway. A polluting event can lead to a massive slate of expenses ranging from fines and financial penalties to extensive clean-up costs, emergency response fees and plenty of other potential expenses. With pollution liability as part of their building contractors insurance, you can get financial assistance from your insurance provider to cover expenses that result from a polluting event you are liable for causing, up to the limits on your Calgary construction insurance policy.
Commercial General Liability (CGL)
Commercial general liability coverage is a crucial form of liability insurance. It is specifically crafted to provide you with financial protection in the event of litigation and settlement costs resulting from a lawsuit alleging that you or your employees caused bodily injury or property damage to a third party. For example, if you were working on a construction site and made an error that caused a wall to collapse onto a neighbouring property and cause damage. The neighbour could choose to sue you to recover the cost of repairing the damage. If you find yourself facing such a situation, your construction insurance's commercial general liability (CGL) coverage would come to your rescue. It would prompt your insurance carrier to provide the necessary funds to cover the cost of repairs or replacements, up to the coverage limits specified in your construction insurance policy. Moreover, it would extend its support by covering additional expenses like attorney fees, legal mediation, and court costs. In the unfortunate event of third-party bodily injury settlements, CGL coverage would take care of medical expenses and potentially compensate for loss of income during recovery, up to your coverage limits.
Completed Operations Liability Insurance
Completed operations insurance is actually a specialized type of commercial general liability insurance that is a recommended addition to any package of construction insurance in Calgary. It is similar to CGL coverage, but rather than applying to third-party claims of bodily injury or property damage that occur while you're working, it applies to situations in which the results of your workmanship allegedly cause third-party injury or damage after the construction is complete. For example, if you built a balcony on a home that was being renovated and it collapsed several years later, causing injury to the people who were on it, they could potentially allege that the collapse was the result of poor workmanship on your part and bring legal action against you in court. You would not be able to file a claim on your CGL coverage because the collapse occurred long after the construction work was complete, but you could file a claim on your completed operations liability insurance and receive funds to cover your legal costs and settlement expenses.
Commercial Auto Insurance
If you have a specialized vehicle that you drive for business purposes only, it's no secret to you that it needs to be properly covered by commercial auto insurance in order for you to legally drive it in Canada. But many people don't realize that if they use a personal vehicle for work purposes, they also need commercial auto coverage as part of their construction insurance. Calgary contractors don't always need specialized, work-specific vehicles, but there are likely some circumstances in which you do need to use your vehicle to do something that is commercial-related. For example, if you have a pick-up truck that you use for everything, it's covered by your personal auto insurance when you're driving to the grocery store or dropping your kids off at school. But if you use it to bring building materials to a job site and you get into a vehicular accident, that accident won't be covered unless you have commercial auto insurance with your construction insurance, because you were using it for work purposes at the time of the crash. Â
Business Interruption Insurance
If your equipment is stolen or your commercial property is seriously damaged in a natural disaster, your commercial property insurance coverage will give you the financial assistance you need to restore the building to functioning condition or replace your equipment, up to your policy limits. But as you know, damage restoration and replacing specialized equipment isn't something that happens in a day or even a week. You will be forced to limit your work participation or you may not even be able to work at all until the restoration or replacement has taken place, and that can spell disaster for your financial bottom line. That is why business interruption coverage is an important part of construction insurance. Calgary construction workers can get the protection they need against the loss of income because business interruption coverage will give them insurance compensation to replace their income while they are waiting to get back to work. It may also cover additional expenses such as employee wages or the cost of a temporary location and rental equipment.
Tools and Equipment Coverage
As a building contractor, you use certain equipment, tools and gear that are essential to your business practices and allow you to complete your work safely, efficiently and effectively to the highest standards of your industry. Because your tools and equipment are such a key part of what you do, you won't be able to work without them if they are destroyed, damaged or stolen. At the same time, you likely don't have the room in your budget to replace everything immediately, especially without putting a huge strain on your financial situation. That's why tools and equipment insurance is a must-have for a comprehensive package of construction insurance. Calgary building professionals require this type of insurance because it covers the cost of replacing or repairing equipment and tools that you need to do your job, so you can get back to work as soon as possible and prevent even more financial strain caused by an extended work stoppage.
Additional Coverage for General Contractor Insurance
- Crime Insurance
- Cyber Liability Insurance
- Commercial Property Insurance
- Equipment Breakdown Insurance
- Inland Marine Insurance
- Mobile Property Insurance
- Surety Bonds
- Accounts Receivable Insurance
- Umbrella Insurance Coverage
Frequently Asked Questions About Construction Insurance in Calgary
Are you looking for more information about construction insurance? Calgary builders, get all your questions answered quickly and easily by calling our qualified brokers at 403-475-5434. As insurance brokers, we make our clients' best interests our key priority. Put your trust in us to track down the ideal construction insurance to protect you against financially-related stress and hardship.
Is Calgary Construction Insurance Mandatory?
It's not a legal requirement to have most types of commercial insurance in Canada, and that is also the case with construction insurance. Calgary construction professionals aren't required by the government to have it, but that doesn't mean they can go without it. Most potential clients will require a certificate of insurance to prove you have adequate coverage in place, so without it, you'll be forced to walk away from the majority of contracts you could potentially get.
How Much Does It Cost for Construction Insurance in Calgary
There are a variety of key factors involved in evaluating the cost of construction insurance. Calgary insurance brokers at Krywolt can't give you a cost range without knowing more about you and how you choose to operate your contracting business. Some of the factors that your insurance carrier will assess when coming up with a reasonable building contractor insurance quote are:
- Location of your business
- Number of employees
- Your annual revenue
- How much experience you have
- Your business location
- Whether you do residential, commercial or industrial contracting
- The specific services you offer
- The kinds of equipment and tools you need to use
To find out more about what they can expect to pay for building contractor insurance, simply give our experienced brokers at Krywolt Insurance a call and let us know more about how you run your business. When we have more information about your risk exposures and insurance needs, we'll track down the best options for you and deliver a selection of quotes so you can make an educated decision about the best course of action for your business success.
Can My Employees Be Covered By My Calgary Construction Insurance?
If you, as a general contractor, have employees who work at your contracting business, they can and should be covered by your construction insurance. Calgary business owners should start by contacting their reliable broker at Krywolt Insurance so they can get their employees added on to their policies as named insureds. When a new employee joins your company or someone leaves, simply call your broker to have them added or removed from your insurance policies so their actions are covered by your construction insurance. As the policyholder, you are the beneficiary of any insurance compensation that results from the coverage. Â
