👷 Contractor Liability Insurance in Canada

 

Why Contractor Liability Insurance Matters in Canada

If you're a contractor in Canada—whether you're building homes, fixing electrical systems, or offering plumbing services—you're exposed to risks every day. Accidents happen, and even a small mistake can lead to costly legal claims or property damage.

That’s why having contractor liability insurance in Canada is not just important—it’s often required by clients and provincial regulations.

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What Is Contractor Liability Insurance?

Contractor liability insurance, also known as general liability insurance for contractors, protects you from third-party claims related to:

• Property damage

• Bodily injury

• Legal expenses

• Personal and advertising injury

This coverage is essential whether you're a sole proprietor, independent contractor, or own a small construction business.

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What Does Contractor Liability Insurance Cover?

Here’s what’s typically included in a contractor liability insurance policy:

✅ Coverage Includes:

• Third-party bodily injury
  (e.g., a client trips over your tools and gets injured)

• Property damage
  (e.g., accidental damage to a client's wall or flooring)

• Medical payments

• Legal defense costs
  (including settlements or court judgments)

• Libel, slander, or copyright infringement

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What’s Not Covered?

Contractor liability insurance does not cover:

• ❌ Damage to your own tools or property

• ❌ Employee injuries (requires Workers’ Compensation coverage)

• ❌ Faulty workmanship or unfinished projects

• ❌ Commercial vehicle accidents (requires Commercial Auto Insurance)

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Who Needs Contractor Liability Insurance in Canada?

In Canada, many clients, general contractors, and even government contracts require proof of insurance before work begins.

🛠 Contractors Who Should Be Insured:

• General contractors

• Electricians

• Plumbers

• Carpenters

• Roofers

• HVAC professionals

• Painters

• Landscapers

• Handymen

• Drywall and flooring specialists

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How Much Does Contractor Liability Insurance Cost in Canada?

The average cost for contractor liability insurance in Canada is between $400 and $1,500 per year, depending on several factors:

📊 Pricing Factors:

• Type of work you do

• Business size and annual revenue

• Claims history

• Location (province-specific regulations)

• Coverage limits and deductibles

💡 Tip: Most contractors choose coverage limits of $1 million to $2 million for adequate protection.

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Top Contractor Liability Insurance Providers in Canada (2025)

Here are some trusted companies that offer contractor liability insurance with online quote tools:

Provider	Features
Zensurance	Compare quotes from 50+ insurers; easy online process
APOLLO Insurance	Quick digital quotes for small contractors and tradespeople
Intact Insurance	Strong customer support and flexible coverage options
Aviva Canada	Custom policies for various contractor trades
The Co-operators	Good for small businesses and bundled policies
Square One	Easy-to-use online interface; competitive pricing

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How to Get Contractor Liability Insurance in Canada

Follow these steps to secure your policy and start working confidently:

📋 Steps:

1. Know your risk exposure based on your trade

2. Choose the coverage types and limits you need

3. Compare multiple quotes online

4. Check exclusions and fine print

5. Purchase and download your Certificate of Insurance (COI)

🧾 You’ll often need to provide your COI before starting a job or contract.

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Final Thoughts

If you're a contractor in Canada, having liability insurance isn't just a smart move—it’s a business necessity. It protects you from financial loss, builds trust with clients, and ensures you're covered if something goes wrong.