Whether your operation is big or small, contractor’s insurance can protect your business and employees in case of injury or property damage. If on occasion you hire subcontractors, you are responsible for their work and well-being too so having general contractor’s insurance in place is a wise choice to safeguard your business and good reputation.
Policies for construction and building trades are designed to primarily protect your tools and equipment, and your business from liability on-site, covering a number of issues from accidents to negligence and oversight.
There are many trades and a wide variety of contractors so that’s why there are numerous options available to customize a contractor’s insurance policy to your exact requirements, according to the risks you face. Factors to keep in mind when looking for adequate insurance are:
Whether you’re a general contractor, sub-contractor or construction tradesperson in Ontario, Mitchell Whale Insurance has policies to help protect you, your employees, your building materials and your equipment – on the job, in the shop and anywhere in between.
When a loss is incurred – say damage to property – there is a misconception that a sub-contractor (for instance, a plumber) does not need insurance coverage as any damage would be covered by the main contractor, or vice-versa. Contractors need to know that they could be liable for a loss caused by a sub-contractor as the latter would be legally regarded as an “agent”. Typically though, the injured party would seek restitution from the most immediate party being the sub-contractor. However, if there is insufficient remuneration available due to the sub-contractor not being adequately insured, attention will turn to the contractor to cover any losses.
In the above scenario where the contractor is forced to file a claim, more often than not the insurance company will seek subrogation action against the sub-contractor to recover the loss, whether that company or person has insurance or not. As a result, it is critical for both contractors and sub-contractors to have adequate insurance coverage. Also, property owners or property managers could face the risk of a subrogation action in the event that the work space is found to be hazardous, thus resulting in an insurance claim.