Construction Insurance in Ontario
Ontario construction contracts come with strict insurance clauses, and job sites come with real risk. Whether you run a renovation crew or manage commercial builds, the right construction insurance program protects your projects, your equipment and your ability to win the next contract.
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Construction Insurance in Ontario
Construction insurance is not a single policy. It is a program built around the work you do, the contracts you sign and the projects you take on. A renovation contractor, a general contractor running a mid-rise build and a developer financing a subdivision all need different combinations of coverage.
This page is the starting point. It explains the main building blocks of construction insurance in Ontario and links to our detailed guides for each one, so you can see what applies to your business before you speak with a broker.
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The building blocks of a construction insurance program
Most Ontario construction businesses need several of these. Select a coverage to read our full guide.
Commercial general liability
Third party injury and property damage claims from your operations and completed work. Almost every contract requires it.
Builder’s risk
The project itself while under construction, including materials on site and in transit, against fire, theft, vandalism and weather.
Contractors equipment
Tools, machinery and mobile equipment against theft, damage and breakdown, on site or in transit.
Commercial auto
Trucks, vans, trailers and fleets, including hired and non-owned vehicles.
Contractors pollution liability
Spills, mould, asbestos disturbance and other environmental claims that CGL policies exclude.
Umbrella liability
Extra limits above your CGL and auto policies when contracts call for $5 million or more.
Ontario rules and contract requirements
WSIB in construction
Construction is one of the industries where WSIB coverage is mandatory in Ontario for most businesses, and it has been required for most independent operators, sole proprietors and executive officers working in construction since 2013. General contractors are expected to confirm that subcontractors are registered, and many owners ask for a clearance certificate before work starts.
What construction contracts usually ask for
Owners, general contractors and lenders use insurance clauses to move risk down the chain. Before you sign, check that your program can meet them.
Minimum CGL limits, often $2 million or $5 million
Additional insured status for the owner and general contractor
Waiver of subrogation and primary and non-contributory wording
Completed operations coverage for a set period after the job
Notice of cancellation and certificates of insurance before mobilizing
Wrap-up liability for larger projects
On larger projects the owner or general contractor may buy a single project-specific wrap-up liability policy that covers every contractor on site. It simplifies claims, but it does not replace your own CGL for your other work, and you still need to understand what the wrap-up excludes.
Surety bonds
Public and larger private projects often require bid bonds, performance bonds and labour and material payment bonds. Bonds are not insurance, since the surety expects to be repaid, but they are arranged through the same brokers and your financial statements and track record decide your capacity.
Construction insurance by business type
Renovation and residential contractors
Homeowner contracts, water damage and completed operations claims drive most losses. Focus on CGL with completed operations, tools and equipment, and commercial auto.
See our contractor insurance guide for trade by trade detail.
General contractors and construction managers
You carry responsibility for the site, your subcontractors and the project schedule. Programs usually include higher CGL and umbrella limits, builder’s risk, contractors equipment and a process for collecting subcontractor certificates.
Specialty trades
Roofers, electricians, plumbers and HVAC contractors each have their own underwriting profile. Roofing in particular has a narrower market, so experience with the trade matters.
Read our roofing insurance guide for more.
Developers and property owners
Lenders will require builder’s risk from the start of construction, and you may need wrap-up liability and owner’s interest coverage. Plan these before financing closes so the project is not delayed.
How insurers price construction risk
Premiums vary widely between two contractors with the same revenue. Underwriters look closely at:
Type of work
Residential vs commercial, new build vs renovation, height, depth and whether you do hot work, roofing or structural work.
Subcontractors
How much work you subcontract, and whether you collect certificates and contracts that transfer risk back to them.
Claims and safety record
Prior claims, WSIB experience, written safety programs and training all affect price and which insurers will quote.
Build a construction program that wins contracts
The right construction insurance does more than satisfy a certificate request. It lets you bid on bigger projects, protects your equipment and cash flow, and keeps a single claim from threatening the company you have built.
Tell us about your trade and your typical projects, and we will connect you with a broker who works with Ontario contractors every day.
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Construction Insurance FAQs
What insurance do I need to start a construction company in Ontario?
Most new construction businesses start with commercial general liability, tools and equipment coverage, commercial auto for work vehicles, and WSIB registration. Your contracts and the type of work you do will decide what else you need.
Is WSIB mandatory for construction in Ontario?
For most construction businesses, yes, including most independent operators, sole proprietors and executive officers working in construction. Check your classification with WSIB, since some exemptions apply.
What is the difference between builder’s risk and CGL?
Builder’s risk covers physical loss or damage to the project itself during construction. CGL covers your legal liability when your work injures someone or damages someone else’s property.
What limits do construction contracts usually require?
Many commercial contracts ask for $2 million in CGL, and larger projects often require $5 million or more, which is usually achieved with an umbrella policy. Always check the insurance clause before you bid.
What is a wrap-up policy?
A wrap-up is a project-specific liability policy that covers the owner, the general contractor and all subcontractors working on one project. It is common on larger builds and condominium projects.
Are surety bonds the same as insurance?
No. A bond guarantees your performance to the project owner, and the surety expects to be repaid if it pays a claim. Bonds are arranged through brokers alongside your insurance.
What to expect from a specialist
1Discovery Call
(30 to 45 min)Understand operations, contracts, assets, and loss history.
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We will request your
expiring policies and loss runs.
2Risk Mapping
(1 to 3 days)Document exposures, limits, sublimits, deductibles, and endorsements that fit your contracts.
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3Market Placement
(2 to 5 days)Approach the right markets
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and negotiate terms, exclusions, and deductibles.
4Proposal & Bind
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Side-by-side options in clear wording, so you can choose with confidence.
Protect your team too
Offer health, dental and life benefits your employees will value.
We also connect Ontario businesses with licensed benefits advisors, from two person teams to growing companies.
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