Renovation Contractor Liability Insurance
As a renovation contractor, you know that the renovation process can be lengthy, complex, and costly. While the finished product is always rewarding, damages and losses can occur at any time to your employees, third-party property, or your own property and equipment. Whether you are an independent contractor or have employees, our renovation contractor liability insurance can protect your business from possible liability and litigation actions.
Why is Renovation Contractor Liability Insurance Important?
With remodeling and construction of home installations such as demolitions, painting, flooring, structures, wiring, plumbing, and more, losses and legal liability can occur very quickly. A few examples of renovation risks include:
- Roofing, walls, or other home structures that collapse.
- Unknown site conditions such as asbestos or broken pipes.
- Damage or theft to equipment and tools.
- Workplace injuries caused by working from heights, operating dangerous equipment, or carrying heavy materials.
- Property damages caused by equipment or natural disasters.
Do contractors need professional liability coverage?
Not all contractors need professional liability insurance, but it’s always beneficial to have. In some cases, clients might require independent contractors and businesses that provide contracting services they hire to purchase professional liability insurance. It helps them ensure the contractors they hire are properly insured and that they are protected if anything happens, such as a lawsuit or liability claim.
Contractors that provide consulting services or other types of professional services and advice should always have liability coverage. These could be people that specialize in software consulting, computer programming, HR consulting, or accounting.
Clients can make claims alleging financial loss because of misinformation, a mistake on your part, failure to deliver the service as promised, or negligence. In this case, you could face an expensive lawsuit. Professional liability insurance helps cover the costs arising from these claims associated with the services, products, or media and advertising you offer.
Who needs contractor liability insurance?
All independent contractors or businesses that provide contracting services can benefit from purchasing comprehensive contractor liability insurance, regardless of which industry you work in or the services you provide. These people might include:
- Professional consultants
- Window cleaners
- Drivers
- Flooring installation companies
- Construction companies
- Repair workers
- Self-employed workers
- Plumbers
- Electricians
- Painter
Contractors liability insurance protects you and your business against liability claims and lawsuits, mitigating any financial risk and loss you might face. It can also help you secure jobs because some clients want to see proof of insurance to ensure they’re protected in the event something goes wrong.
What Does Renovation Contractor Liability Insurance Cover?
Our renovation contractor liability insurance coverage plans are customizable according to your risk management concerns, operational needs, budget, and client requirements.
Common renovation contractor liability insurance coverage includes:
Commercial General Liability Insurance (CGL) – A CGL policy covers your renovation operations for lawsuits and liability for medical expenses, property damages, and bodily injury liability to third parties.
Pollution Liability Insurance – Covers cleanup and litigation costs from hazardous materials that spill and cause bodily harm or damage to property or the surrounding area.
Course of Construction Insurance – Provides property coverage for the home/building while renovations and repairs are being done as most residential & commercial property policies exclude or void coverage during the course of a material renovation because property under construction is considered high risk and a material change.
Business Interruption Insurance – If your business location is forced to close because of a natural disaster like a fire or flood, you might incur damages and income losses while you rebuild. Most insurance policies cover employee wages, profit, rent or lease payments, moving, and more.
Property Insurance – Reduces your risk exposure by protecting your supplies, equipment, tools, materials, and more from losses caused by theft or environmental damages.
How much does a contractor’s insurance cost?
It depends on the type of coverage you have and how much coverage you have. A robust, comprehensive insurance policy will be more expensive than a basic package. On average, businesses can expect to pay around $450 each year for a basic contractor general liability insurance policy.
Factors that impact insurance cost include:
- Number of employees
- The services you provide
- Business location
- Value and amount of equipment owned
- Annual and projected revenue
- Years of experience
- Historical insurance data
- Your deductible
Build a Sturdy Renovation Contractor Liability Insurance Package, so You Don’t Have to Remodel Your Business
At ALIGNED, we work with Canada’s top insurance companies to provide custom insurance packages for your renovation needs at affordable prices. Contact an ALIGNED commercial insurance specialist or Click Here To Get A Quote Now.
