Insurance for Saskatoon Construction and Contractor Businesses
Saskatoon construction businesses and independent contractors can face lawsuits from their customers, suppliers, and members of the public that involve injury or property damage. Business liability insurance is essential to protect you financially from legal action.
You also need business liability insurance to protect your Saskatoon construction company from claims of negligence or failure to deliver a service.
A Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your Saskatoon construction business.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best business coverage for your needs.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose to protect your construction business’s specific needs such as liability protection.
Why liability insurance for Saskatoon construction companies and independent contractors is needed
Liability insurance for Saskatoon construction firms provides financial protection should you or your employees be named in a lawsuit.
Did you know? It’s essential to have your business insurance customized to the specific risks in your construction work and the equipment you own.
Liability insurance is an essential part of your Saskatoon construction insurance package. Here are the liability coverages that you need to help protect your construction business from lawsuits.
Commercial general liability insurance
The most important type of insurance you need for your Saskatoon construction/contractor company is commercial general liability. If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your business in court, as well as costs to cover damages to compensate third parties.
What kind of risks does commercial general liability cover?
Commercial general liability covers risks such as:
- Injury to another person who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal and settlement costs of liability lawsuits filed against you
- CGL insurance also helps cover the costs of liability lawsuits related to slander and libel.
Professional liability insurance
Professional liability insurance helps protect Saskatoon contractor firms against claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.
In the case of a negligence claim, for example, a construction company with professional liability insurance would have its policy pay for some or all of the claim costs.
Cyber liability insurance
If you keep sensitive financial information belonging to your clients, your Saskatoon construction/contractor business could be attacked by cyberthieves. Cyber liability insurance will help protect you financially should there be a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. Are you financially prepared for that?
Pollution liability insurance
It’s not uncommon for construction companies to be exposed to liabilities related to pollution while working at job sites.
Pollution liability insurance covers third-party bodily injury and third-party property damage and it also helps cover environmental damage resulting from your construction work, including clean-up costs, fines and assessments, and emergency response expenses.
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Saskatoon construction firm. Commercial umbrella insurance addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.
Umbrella insurance applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
2 examples of how Saskatoon construction insurance protects you
While repaving a Saskatoon street, one of your workers accidentally hit a sewage line, causing a spill. Pollution liability insurance policy can help cover the clean-up costs and repair the sewage line.
Tools and equipment are stolen from a job site. Tools and equipment insurance can provide reimbursement to replace the stolen goods.
What other types of insurance are needed for Saskatoon construction companies or independent contractors?
Equipment breakdown insurance
This type of insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy. You’ll need to have a list of the equipment at your business and how much it’s worth.
Course of construction insurance
It’s also called builders risk insurance. Course of construction insurance provides coverage for a building, job site, and construction materials during the construction phase, including renovation and repair.
This type of insurance usually begins before the first materials arrive on the job site and ends once the project is complete.
Why do you need course of construction insurance coverage? Your typical contractor’s insurance policy would not cover buildings under construction.
Surety bonds
Your Saskatoon construction/contracting business can benefit from a surety bond.
Surety bonds involve a three-party agreement between the principal (your construction business), the obligee (the party that requires the bond such as a government, company, institution), and the surety company (such as an insurance brokerage).
Surety bonds are required in certain industries or for specific projects to ensure completion, compliance, or payment.
A surety bond will pay your customer if your Saskatoon construction business does not complete a job or obligated task. If work is not completed per agreement, a client can claim the bond and receive compensation for their loss up to the bond’s limit. Once claimed, the paid-out losses are still recoverable from your construction business.
Commercial property insurance
Whether you rent or own your Saskatoon construction business’s location, commercial property insurance can provide financial coverage for physical loss, such as a fire, or damage to your business property and its contents.
Tools and equipment insurance
Tools and equipment insurance provides financial protection for any transportable tools or equipment that your Saskatoon construction business uses to complete work projects.
Tools and equipment insurance can provide reimbursement to repair or replace tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.
Did you know? Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.
Commercial auto insurance
Any vehicles used by your Saskatoon construction business need to be covered by commercial auto insurance, including leased or rented vehicles and personal vehicles used by your or your employees for work. Your personal car insurance usually does not cover your work vehicles.
Does your construction firm have more than 5 vehicles? You’ll need fleet insurance.
Commercial auto insurance covers medical fees, legal costs, and repair or replacement costs if your company's vehicles are involved in an accident. It also covers theft and vandalism.
Business interruption insurance
This type of insurance supports you when your construction business can’t operate due to a covered loss.
There are a number of losses that could force your Saskatoon construction company to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
How much does Saskatoon construction insurance cost?
The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.
What do I do if I have a claim against my Saskatoon construction business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s an insurance checklist:
- Do you have the best business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Saskatoon construction company. Our experts are available now to help you navigate the business insurance journey to protect your business.
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