What Insurance do B.C. Contractors Need?

June 3, 2024

As a B.C. contractor, you know that every job can bring risks. Contractor insurance helps protect your construction business daily.

A customized insurance package will protect your specific type of construction or renovation work as a general contractor in British Columbia.

Get an Insurance Quote

How will customized contractor insurance protect my B.C. business?

Showing proof of insurance will give your customers confidence in your British Columbia contractor/renovator business.

A B.C. contractor insurance package can help protect you from these common claims:

1.Your tools were stolen from a truck at a Vancouver job site. Tools and equipment insurance can help cover the costs of replacing the stolen tools and reimburse you for the rental expenses.

Tools and equipment insurance will help cover the cost to replace them. Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.

2. A client’s counter is scratched when you leave some small pieces of equipment on it. Commercial general liability (CGL) insurance can help cover the cost of repairing the counter.

How much does insurance cost for contractors?

The amount of money that you will pay for customized insurance as a B.C. contractor/renovator will depend on the following factors:

• The size of your B.C. business
• Your annual revenue
• What services you provide
• Any past claims
• How many employees you have
• How long have you been in business

Here are the insurance coverages recommended for B.C. contractors

Commercial general liability (CGL) insurance

CGL insurance is also known as “slip-and-fall” insurance because it protects against claims involving third-party bodily injuries, such as a client getting injured while you are doing work at their home or business.

It can also help protect you against third-party property damage such damaging property while you are doing work at a client’s home or business.

It also helps protect you, as a British Columbia contractor or renovator against allegations of false advertising, and libel or slander.

Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket, which can add up quickly.

It’s recommended that you have at least $2 million in CGL insurance, but you many need a higher amount if you are a large contractor.

Tools and equipment insurance

It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your business.

This type of insurance can also be called equipment floater insurance.

Commercial Auto Insurance

Your contractor business needs commercial auto coverage as part of your insurance package. Personal car policies will not cover your drivers or your B.C. construction business.

Cyber liability insurance

Do you take digital payments and keep client information online?

Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system if it’s hacked by cyber criminals. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Commercial property insurance

If you own a large contractor business in British Columbia, commercial property insurance keeps it protected from property losses, such as theft or vandalism.

You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your office headquarters.

Property you may need to insure:

• Buildings and other structures
• Furniture, equipment, supplies
• Computers
• Documents such as payroll, accounts receivable