Show hide
Business Insurance

Contractors Insurance

General contractors provide a vital service to home and business owners. But there are plenty of opportunities for things to go wrong. If you’re sued, General or Professional Liability insurance can cover legal fees and damage award costs. With APOLLO Insurance, policies start as low as $18.15/month

Contractors offer a crucial service to Canadians

As a building or general contractor, you turn houses into homes, or you’re one of the first steps to someone’s new business venture. The right insurance coverage protects you from your business’ risks. Whether you’re installing flooring or managing subcontractors, a missing nail or bolt can lead to an injury or to damages leading to a lawsuit. APOLLO Insurance provides insurance plans bespoke to your contracting business’ needs. 

You could have 20 years in the industry or 20 days’ experience. Every contractor is exposed to risks for the projects they take on. There’s always an opportunity that an unhappy client sues you due to a mistake or delay in the construction process. Errors or delays may be out of your control, but the client’s right to sue remains. Professional liability insurance prepares your business to handle any lawsuits. If a client claims you were negligent, professional liability insurance can manage the related legal fees and court costs. 

Having the proper insurance plan provides peace of mind. Once insured, you know that your business won’t face financial ruin if someone threatens to sue. Instead, your insurer will do its job and handle the financial costs on your business’s behalf. This lets you rest easy and instead focus on your next renovation or build.

Why do contractors need insurance

Contractors manage both small and large projects that must adhere to strict instructions and timelines. Missing the mark on the smallest detail can result in significant damages or losses. Contracting work is, therefore, a risky business that requires insurance.

Because of the risks, some individuals and businesses only work with contractors who are insured. This is especially true for large corporations, who want to mitigate as much risk as possible. So if you’re going to grow your business and get more clients, it’s critical to have the right insurance policies in place.

If equipment breaks or subcontractors call in sick, your project may be delayed. If this delays a client’s grand opening, it could cause the client’s business substantial losses. They’ll then likely look to you for compensation because your negligence caused them a substantial loss. Regardless of whose fault it is, defending against a lawsuit can cost thousands of dollars. If you’re found legally liable, you’ll be on the hook for even more costs. The right insurance policies are essential to ensure your business doesn’t face the financial fallout of such an unfortunate circumstance. 

What types of risks does your business face as a contractor?

As a contractor, clients expect you to buy materials, manage construction, work with engineers and architects, and more. Some clients may allege you were negligent, didn’t deliver the promised quality of construction, or that delays in the project caused them a financial loss. These scenarios commonly birth lawsuits that are costly to defend, regardless of whether you’re in the wrong. Even allegations of wrongdoing can cause financial hardships for your contracting business. 

You or someone from your team also risk making mistakes that can lead to property damage. For example, if you drill the wrong spot or accidentally damage the foundation of a property during a renovation, it could mean an expensive repair bill. Although you hold yourself to the highest standard, accidents such as this can always occur. Experience and attention to detail can mean you make fewer mistakes, but you’ll never be perfect.

Your worksite is exposed to many dangerous elements. Electrical wiring may not be complete, or nails may be exposed. If a client comes to see the site, it can lead to bodily injury and a lawsuit. Additionally, even equipment lying around can cause passersby to trip, fall, and injure themselves. Their bodily injury could also procure a legal claim against your business. Although injuries could be a genuine or freak accident, you’ll still be liable to compensate for these injuries.