Construction & Contractor’s Liability 

construction liability two construction workers

Construction and engineering industries can be extremely complex. 

We can help to identify any associated exposures and draw up a solution that’s tailored to your very unique needs.

Whether you are a tradesperson working alone, a large construction firm or an independent engineer/architect, we can help.

Common coverages for Construction & Contractor’s Liability

Builders Risk Insurance

Builder’s Risk Insurance coverage is designed to protect new builds and buildings that are undergoing repairs, reconstruction or renovations. This type of insurance protects a contractor from a loss during a construction project due to weather, fire and accidents. Sometimes referred to as renovation insurance, it also provides funding to repair, repurchase or reconstruct the covered loss for the benefit of all contractors working on the project and for all parties that have an insurable interest in the project including the owner, general contractor, and subcontractors.

Business Interruption Insurance

Business Interruption Insurance compensates you for your lost income while your business is closed due to an insured direct physical loss. It replaces your loss of income or profits until you’re back up and operating again.

Typically, Business Interruption Insurance coverages would include:

Extra Expense Coverage:

This form of coverage insurers against payment of additional expenses while operating in temporary quarters due to damage to buildings or contents by an insured peril.

Gross Earnings Coverage:

A form of insurance which covers the reduction of gross earnings (total net sales less the cost of goods sold) during the period that a business is shut down following damage by an insured peril. Coverage however, only applies until the doors open again for business.

Profits Coverage:

This form of coverage continues until the organization profits have returned to the same position as they were prior to the loss occurring subject to an indemnity period which is usually 12 months.

Rental Income Coverage for Landlords:

A form of business interruption insurance designed for landlords to cover the loss of rents when leased property is made uninhabitable due to damage by an insured peril.

Commercial General, Umbrella and Excess Liability

Commercial General Liability Insurance is a standard and common insurance policy issued to businesses and organizations to protect them against liability claims. 

Commercial General Liability or CGL insurance protects you and your business against claims for bodily or personal injuries, advertising liability, as well as property damage to third parties arising from your operations or products or occurring on your business premises. In the event you are sued for any claims arising out of the above, this protection would cover the legal costs to defend the claim against your business in court, as well as indemnity costs to cover damages to compensate third parties.

The typical CGL Insurance policy contains numerous types of coverage including:

  • Bodily injury 
  • Property damage 
  • Products liability 
  • Current and completed operations
Commercial Property Insurance

Commercial Property Insurance protects you against loss or damage such as a fire, theft, vandalism and more. This important protection covers the physical assets of your business inside and out, including buildings, inventory, electronics and equipment, as well as exterior fixtures.

Contractor's Equipment Insurance

Contractor’s Equipment Insurance is a broad-ranging policy that is designed to protect damaged and missing equipment.

Your coverage under Contractor’s Equipment Insurance can vary significantly depending on your specific policy. Usually, the policy will cover the tools and equipment up to their replacement cost within a certain number of years of it being new. Any new tools and equipment that you purchase after the policy takes effect will normally be covered for a specific period. This guarantees that the new equipment is covered, while you’re given an additional amount of time to update your coverage. Depending on the depth of your coverage, you can even extend it to also cover your employee’s clothing and small tools.

Contractor's Pollution Liability (CPL)

Contractors Pollution Liability (CPL) Insurance can provide the protection contractors need against the environmental liabilities left uncovered by standard commercial general liability insurance with restrictive pollution exclusion clauses. 

Equipment Breakdown Coverage

Equipment such as pressure vessels and boilers require special attention. Most commercial property policies do not provide coverage for breakdown to these types of equipment, or to other business-critical electrical systems. This is why Equipment Breakdown Coverage is important – it’s designed to complement Commercial Property Insurance, offering protection against damages to mechanical, electrical, pressure and electronic equipment and other business property. In addition, this coverage can provide protection for business interruption / loss of revenue as a result of breakdown.

Whether you own a building or rent space in one, Equipment Breakdown insurance is essential for every business owner who:

  • Occupies a building that uses electricity, heat or air conditioning
  • Uses electronic equipment such as computers or a telephone system
  • Runs a manufacturing business
  • Uses hot water or steam
Installation Floater Insurance

Standard property policies do not cover materials that are being installed. Without proper insurance in place, commercial operations can potentially diminish their profit margins or end up losing money on their jobs. Installation Floater coverage can help limit the impact when accidents occur.

Wrap-up Liability Insurance

Wrap-Up Liability Insurance is an effective way of ensuring all the liability risks associated with construction projects are adequately insured. Traditional insurance approach requires each party to procure and maintain separate coverage and that may leave for gaps of insurance.

As an alternative to having each party obtain separate liability policies, project owners and general contractors can turn to Wrap-Up Liability Insurance programs to manage their risks.

Wrap-Up Liability Insurance programs are centralized insurance and loss control programs that can protect the project owner, general contractor and/or subcontractors under a single insurance policy or set of policies for the construction project. While most frequently used for large, single-site projects, a blanket or rolling wrap-up can be used to insure multiple projects under one program.