Contractor Insurance In Alberta
Affordable Contractor Insurance in Alberta – Save Up to 35%
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- Environmental insurance protection options.
- Free commercial insurance policy assessment. Hail and fire per occurrence deductible for equipment, tools, and vehicles.
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What Is Contractor Insurance in Alberta?
Contractor insurance in Alberta is a type of business insurance for contractors that protects against financial losses resulting from job site accidents, property damage, third-party claims, and equipment theft. Besides providing essential protection for contractors and subcontractors, it’s often required by many clients and municipalities, especially when working on public construction projects or bidding for large projects.
What does Contractors’ Insurance Cover?
Contractors Insurance offers comprehensive protection for general contractors and subcontractors, encompassing a variety of essential coverages to address the risks that come with working in the construction industry.
Commercial General Liability Insurance
Commercial General Liability (CGL Insurance for short) is a type of coverage your business from expenses related to third-party bodily injury, property damage, or reputational harm while working on a project. This liability insurance for contractors ensures that your business is safeguarded from potential legal and financial consequences. It covers legal defense costs, settlements, and court fees associated with third-party claims. Whether you’re an independent contractor, subcontractor, or owner of a contracting business, CGL provides important protection that most clients and municipalities usually require. You can learn more and get a quote for CGL insurance here.
Builder's Risk Insurance
Contractors’ Insurance may also encompass Builder’s Risk insurance coverage for construction workers. This type of construction business insurance covers any damage to structures and building materials during construction or renovations, ensuring that projects remain protected throughout the construction or renovation process. Also known as construction site insurance or building site insurance, this coverage protects against property damage caused by fire, theft, vandalism, or certain weather-related events. This insurance for builders is designed to cover materials, equipment, and buildings under construction until the project is completed and handed over to the client.
Equipment Breakdown Insurance
Another crucial component of Contractors and Subcontractors Insurance is Equipment Breakdown insurance. This coverage protects against the costs associated with repairing or replacing damaged equipment if it breaks down. This ensures that your business can continue to operate smoothly, even in the event of equipment failure. Unlike standard property insurance, which only covers damage caused by risks like fire or theft, equipment insurance is designed to protect against mechanical or electrical failures that happen during normal use. It’s especially important for construction contractors or subcontractors who use expensive equipment, such as cranes, bulldozers, compressors, or generators.
Commercial Auto Insurance
Commercial auto insurance covers vehicles used by contractors for business purposes. This coverage protects against repair and replacement costs if the vehicle is damaged, stolen, or involved in an accident, ensuring that your business transportation is safeguarded and minimizing potential downtime. You can never skip commercial auto insurance in Alberta, because besides the protection it provides, it’s a mandatory coverage under provincial law, and not carrying it can lead to severe consequences.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance (E&O), is another type of contractor liability insurance in Alberta. This liability coverage protects contracting businesses and contractors against claims of unintentional negligence, mistakes, or failure to deliver services as promised. Moreover, many professional bodies and clients won’t work with a contractor unless they have errors and omissions insurance, ensuring they have financial security against potential losses. By helping cover the costs of potential lawsuits and legal fees, this contractor’s liability insurance allows contracting businesses to operate without financial strain, even when faced with disputes or claims.
Tools Insurance Coverage
Similar to equipment insurance, tools insurance is designed to protect smaller tools that contractors use daily. This coverage helps pay for the repair or replacement of hand tools, power tools, and other portable equipment if they are lost, stolen, or damaged. Since these tools are usually in constant use and transported between job sites, they face a higher risk of accidental damage, misplacement, or theft. Many providers offering insurance for construction companies include tool coverage as part of their policies because these tools, no matter how small they are, are essential for construction work.
Commercial Property Insurance
Commercial property insurance is a type of insurance for general contractors who own or lease a physical business location, such as offices, workshops, stores, or warehouses. This coverage protects the property itself, the tools and equipment inside, and the furniture against risks like fire, theft, vandalism, and certain natural disasters. It’s important to know that commercial property insurance doesn’t cover residential construction or other structures under development at a job site. These sites are covered by another type of contractor business insurance named builder’s risk insurance.
Workers' Compensation Insurance
This type of general contractor insurance is designed for businesses that have employees, like subcontractors, labourers, and administrative staff. Workers’ comp insurance is one of the mandatory coverages in Alberta, regulated through the Workers’ Compensation Board (WCB Alberta). If a contractor is injured on a job site or while performing work-related duties, workers’ comp helps cover medical expenses, rehabilitation, and lost wages up to a certain amount.
Loss of Income Insurance
If you have to close your business temporarily, loss of income insurance helps replace the lost income resulting from this business interruption. This coverage helps your business remain financially stable even at challenging times, such as after a fire, flood, theft, or other insured events. It allows you to pay ongoing expenses, including wages, utility bills, loan payments, and even costs related to transporting materials. By including loss-of-income insurance with your construction insurance coverage, you ensure that your business and the parties involved in your projects can still meet their financial commitments even if your operations are temporarily suspended.
If you want specialized insurance like crane insurance, Bobcat insurance, hydrovac insurance, or machinery insurance, contact Leibel today and get a free quote.
Get a QuoteWho Needs Contractors’ Insurance?
If you are a Contractor in any of the following industries, chances are that you have a risk to which you are exposed:
- Cleaning and Janitorial Services
- General Construction
- Plumbing
- Painting
- Excavation
If you are an Alberta Contractor who falls into a more specialized area, note that the list of contractors requiring insurance is not limited to the above examples. If you are running an independently owned business and are performing a service for a client, consider looking at a policy that is tailored to the type of service you are providing. In doing so, your business will be protected in the event of a risk exposure.
Our construction insurance brokers are the best in the industry; they know the ins and outs of Alberta’s contracting sector, and they can help you find the right insurance coverage for your business. Whether you’re looking to secure public liability insurance for contractors or if you want a full commercial builders insurance package, we’ve got you covered. Get a free quote today or contact one of our insurance brokers to learn more.
Why Do Contractors Need Insurance?
Contractors in all industries face the very real risk of loss exposure, as the construction industry is among the most dangerous fields of service. There is an ongoing need to minimize the risks associated with the operations being performed by a contractor to reduce the chances of a loss occurring.
Although we all hope and believe that a loss will not occur on our watches, accidents can and do happen. In the construction industry, especially, this reality is all too real. Even the most experienced and cautious contractors aren’t immune to risks that could lead to potential lawsuits, disputes, and reputation harm. That’s why securing contractor insurance with a reliable insurance provider is essential. At Leibel Insurance, we partner only with the best insurance companies in Alberta to protect your business operations, liability, and reputation.
Whether you’re looking for a full contractor insurance package or only need independent construction liability insurance in Alberta, our team is here to guide you through the process. We ensure you’re adequately protected to comply with licensing requirements, meet clients’ expectations, and protect your business from any financial setbacks.
How Much Is Contractor Insurance in Canada?
The average contractors’ insurance cost in Alberta is between $500 – $800 annually for basic commercial general liability coverage with limits of $1-$2 million. However, this cost varies greatly depending on several factors, such as:
- Your Construction Practice
- Risk Management Strategies
- Business Size & Revenue
- Tools, Equipment & Vehicles
- Coverage Limits and Options
- Claims History
Your premium will be higher if you opt for comprehensive coverage, including commercial auto insurance, which offers extensive protection. For example, if you choose a full contractor insurance package including liability, auto, tools, property, and builder’s risk, your premiums can range from $1,500 to $5,000 annually.
If you think about it, it’s a small price to pay compared to the potential financial impact of a single lawsuit. However, you can lower your premium by opting out of certain coverages, but this can leave your business vulnerable to specific risks. It’s essential to balance cost and protection to ensure your business is adequately covered.
Contact us today to secure the right coverage for your business at a competitive price. We don’t just sell you insurance; we provide advice on coverage types, guidance through the claims process, and solutions that fit your specific needs.
How Leibel Insurance Can Help You?
Your Leibel Insurance broker will be able to guide you when it comes to the coverage options to be included in your policy. Your insurance broker will be able to give you advice on what products are best suited for you based on the type of work you are performing. Your insurance broker will also offer you suggestions on insurance products available to you in addition to General Liability, such as Commercial Auto Insurance, Course of Construction insurance, Wrap-up Liability, Cyber Insurance, and many more.
Not all clients know exactly what coverages they need or what the benefits of these coverages are. Your broker at Leibel Insurance is expertly trained in knowing what coverages to recommend to you and will place you with the best product for your needs. All quotes provided are free of charge, and the purchase of coverage could potentially save you hundreds, if not thousands, of dollars in liability claims.
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Client Insurance Requirements
Choosing to purchase an Alberta Contractors Insurance product for your operations is not only a benefit to you and your employees, but it can also be a requirement for many of your clients. At times, Contractors may enter into an agreement with a project owner for a specific project, where the client is requesting proof of General Liability insurance. In some cases, the client may also request to be listed as an Additional Insured on the policy. Being able to provide your client with proof of insurance may be the deciding factor whether you secure the contract or lose it to another contractor. It also shows your client that you are proactive in protecting yourself from the many risks you may be exposed to on the job.
In addition to insurance, many project managers and clients require contractors to be boned and insured for an additional layer of protection. Contact Leibel today to learn more about surety bonds and how to obtain them in Alberta.
How Much is Liability Insurance for a Contractor?
The cost of liability insurance for a contractor varies based on the type of liability insurance you choose:
- Commercial General Liability Insurance: CGL usually costs between $500 and $800 annually in Alberta for coverage limits of $1-$2 million. Since third-party liability claims are one of the most common claims in the construction industry, contractors must get this coverage as part of their insurance plan.
- Professional Liability Insurance: This coverage, also known as errors and omissions insurance, starts at around $1,000 annually. It’s more expensive than CGL because it covers highly specialized risks that can lead to expensive lawsuits and financial losses for contractors and clients.
- Pollution Liability Insurance: This type of liability insurance is more specialized as it protects against risks that can cause environmental damage. It usually starts at $2,000 annually, depending on the level of risk exposure involved.
What Is Construction Insurance in Alberta? And Why Is It Important?
Construction insurance is a comprehensive policy designed to protect against accidents on project sites, damage to third-party properties or clients’ homes, and damage to manual and electronic equipment. It includes important coverages, such as commercial general liability insurance, builder’s risk insurance, workers’ compensation, commercial property insurance, and commercial auto insurance.
With the number of unique risks contractors face performing their daily jobs, having proper construction insurance is as essential as a hard hat on the job site. Partner with us today to benefit from our expert advice, smooth process, and hassle-free insurance quotes.
What Does Builder’s Risk Insurance Cover in Alberta?
Builder’s risk insurance protects buildings under construction, renovation, or repair against damage or loss during the construction process. Besides protecting the structures, it also covers the tools, equipment, and materials stored on the project site or in transit to the project location. Some policies include coverage for the costs of cleaning up, removing debris, and repairing or replacing damaged parts of the structure after an insured event.
What Does Commercial General Liability Insurance Cover for Contractors?
Commercial general liability for contractors protects them against third-party liability claims, including:
- Third-Party Bodily Injury: If a client or a pedestrian is injured on the jobsite, this coverage helps pay for medical expenses, rehabilitation costs, and legal fees associated with the claim. For example, if a falling object injures someone passing by the project site,
- Property Damage: If your construction operations cause damage to someone else’s property, CGL helps cover the repair or replacement costs. For example, if a contractor accidentally causes water damage while installing an air conditioning system or breaks a window while painting a client’s home, the costs will be covered under your policy.
From independent contractor insurance to comprehensive construction insurance policies, the right coverage is what keeps your business moving safely. Contact our team at Leibel today for a free quote.
How to Find the Best Contractor Insurance Company in Alberta
- Fill out our free quote form and provide the required details about yourself and your business.
- Speak with one of our licensed insurance brokers who will explain everything to you and walk you through your options.
- Customize your coverage and explore additional coverages if needed.
- Our team at Leibel will get you the best quotes from top-rated insurance providers in Alberta to ensure you receive the right coverage for your business.
- Once your policy is active, you can start showing it to clients as proof of insurance. This not only strengthens your credibility but can also help you secure more projects, especially those requiring proof of liability or builder’s risk coverage.
Common Contractor Insurance Claims in Alberta
- Property Damage: A general contractor accidentally damages the client’s floor while painting the walls; general contractor insurance helps cover the repair costs.
- Third-Party Bodily Injury: A client trips over a cord and injures his leg while visiting the jobsite. The contractor’s general liability insurance covers the medical expenses and rehabilitation costs.
- Equipment Theft: Someone breaks into a construction company’s warehouse and steals several valuable equipment. Without proper insurance, the company would have to delay projects and pay thousands of dollars to replace the stolen items.
- Fire Damage: A contractor accidentally triggers an electrical short while installing an air conditioning unit, sparking a small fire and damaging drywall and insulation. His contractor insurance policy covers the repair costs.
Contractor Insurance, Alberta – FAQs
Your Contractors’ Insurance does not automatically cover subcontractors. If you plan to hire subcontractors, it’s crucial to consult with your broker or insurance company to see if they can be included under your policy. If they can’t, the subcontractor should obtain their own insurance to avoid being liable for any damages they may cause.
Contingent Employers’ Liability Insurance protects contractors if an employee or subcontractor is injured on the job and isn’t fully covered under workers’ compensation. It helps cover legal costs and compensation claims while protecting the contractor from lawsuits related to workplace injuries.
Yes, long-term disability insurance is important for contractors because it provides partial income replacement if you become unable to work due to illness or injury. It also helps cover living expenses and medical bills till you can return to work.
Professional liability insurance, also known as errors and omissions insurance, protects contractors against claims of professional negligence, mistakes, or errors in the work they provide. It helps cover legal fees and defence costs and settlements if a client alleges financial loss due to your professional advice, design, or service.
- Contact your insurance provider once the incident occurs.
- Provide details such as the date, location, and description of the event, along with any supporting documents like photos or invoices.
- Your insurance broker will guide you through the process and ensure you get a fair and quick resolution.
Yes, renovation contractors working on historical buildings often need specialized coverage. These projects carry unique risks, such as fragile structures, strict restoration requirements, and high-value materials. A comprehensive policy would include builder’s risk, liability, and property coverage.
Contractors in Alberta need the following insurance policies:
- Commercial General Liability Insurance – Protects against third-party injury or property damage.
- Builder’s Risk Insurance – Covers structures, materials, and tools on project sites.
- Professional Liability Insurance – Protects against claims of errors or negligence.
- Commercial Auto Insurance – Covers vehicles used for business operations.
- Workers’ Compensation Insurance – Required for employees through WCB Alberta.
- Tools and Equipment Insurance – Covers theft or damage to essential equipment and tools.
Contractor Protective Liability Coverage protects general contractors from liability arising from the actions or negligence of subcontractors. It helps cover legal fees, settlements, and damages if a subcontractor’s work causes injury or property damage.
The minimum general liability coverage a contractor should carry is $1 million.
Yes, subcontractors need their own insurance. If you have multiple subcontractors working on a project, it’s recommended that each one carries commercial general liability and, when applicable, workers’ compensation coverage.
You can get affordable contractor insurance in Alberta through partnering with Leibel Insurance. By comparing quotes from top-rated providers, bundling coverages into a comprehensive policy when possible, we can find the best protection at competitive rates.
A $1,000,000 liability insurance policy for contractors in Alberta usually costs between $40 and $70 per month, depending on the type of work, business size, and claims history.
After an insurance claim is approved, the insurance provider pays the contractor by issuing a check within a few days to cover the repair or replacement costs.
Liability insurance for contractors doesn’t cover intentional damage, misconduct, poor workmanship, contract disputes, or the cost of repairing your own work.
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