Builders Insurance
Protect Your Projects, People, and Profit with Builder-Focused Coverage
Builders Insurance in Ontario
What Is Builders Insurance?
Builders insurance is a customized insurance package designed to protect those in the construction and building trades—including general contractors, custom home builders, framing crews, project managers, and developers.
It offers financial protection for a range of risks that occur on-site and off-site: property damage, third-party injuries, equipment loss, construction delays, and liability claims.
Whether you’re constructing new homes, renovating commercial spaces, or managing infrastructure projects, builders insurance protects your business, tools, team, and the projects you’re building.
Who Needs Builders Insurance?
If you’re involved in any part of the construction process, you need builders insurance. This includes:
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General contractors
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Custom home builders
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Renovation and remodeling contractors
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Project managers and site supervisors
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Excavation and foundation companies
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Framing and structural contractors
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Concrete, roofing, or siding specialists
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Commercial builders and developers
Even subcontractors working under a GC benefit from tailored insurance coverage. In many cases, builders insurance is required to pull permits, sign contracts, or work on certain job sites.
What Does Builders Insurance Cover?
1. Commercial General Liability (CGL) Insurance
Covers third-party bodily injury and property damage claims that occur on-site or as a result of your operations.
Example: A visitor trips over tools at the job site and sues for medical expenses. Your CGL covers legal defense and damages.
2. Builder’s Risk Insurance (Course of Construction Insurance)
Covers property under construction—including materials, fixtures, and partially completed structures—against fire, theft, vandalism, and weather-related damage.
Example: A storm damages the partially built structure and materials on-site. Builder’s risk insurance helps cover the cost of repair and replacement.
3. Tools & Equipment Insurance
Protects your valuable gear—ladders, saws, compressors, drills, and power tools—from theft, vandalism, or damage both on and off the job site.
Example: Your locked trailer is broken into and $20,000 worth of tools are stolen. This policy helps cover the loss.
4. Contractors Pollution Liability Insurance
If your work includes demolition, excavation, concrete, or chemical use (paints, sealants, etc.), this protects you from liability related to environmental damage or hazardous material exposure.
5. Commercial Auto Insurance
Covers vehicles used for hauling materials, traveling to job sites, or transporting employees. Personal auto insurance won’t cover business use.
6. Business Interruption Insurance
If your equipment is damaged or a job site is shut down due to a covered event, this insurance helps cover lost income and operating expenses during downtime.
Common Risks Builders Face
The construction industry is high-risk by nature. Without the right insurance, one accident can stall a project—or your entire business.
Builders commonly face:
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On-site injuries involving employees or third parties
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Material or equipment theft from trucks, trailers, or job sites
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Weather or fire damage during construction
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Property damage caused to adjacent buildings
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Contractual liability or project delays
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Claims of poor workmanship or defective construction
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Vehicle accidents during deliveries or site visits
Is Builders Insurance Required in Ontario?
Some coverage types are legally or contractually required:
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WSIB (Workers’ Compensation) is required if you employ workers in Ontario.
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Commercial General Liability is often required to obtain permits or bid on commercial/government contracts.
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Builder’s Risk Insurance is frequently required by lenders or project owners for new builds and large renovations.
Even if not mandatory, proper coverage is often the difference between landing a job or being left off the vendor list.
How Much Does Builders Insurance Cost?
Premiums vary depending on:
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Type and size of your construction projects
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Annual revenue and payroll
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Location and project types (residential vs. commercial)
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Tools and equipment value
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Number of employees
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Prior claims history
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Coverage limits and deductibles
Why Choose SIG.ca for Builders Insurance?
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We understand construction and trade-focused insurance
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Fast, personalized quotes from top Canadian carriers
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Guidance on what’s required by law, lenders, and contracts
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Ongoing support as your business grows
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Transparent advice—no one-size-fits-all policies
Whether you’re just starting out or managing a growing crew, we’ll help you build a policy that works as hard as you do.
Frequently Asked Questions
What’s the difference between general liability and builder’s risk?
CGL covers injury and damage to others. Builder’s risk covers the project itself while it’s under construction.
Do I need builders insurance for a renovation project?
Yes—especially if you’re doing structural work, demolition, or working on a client’s property. Builder’s risk and liability are both critical.
Is tool insurance included in my policy?
Some general liability policies offer limited tool coverage, but it’s usually capped. We recommend standalone tools & equipment coverage for high-value items.
Can I get coverage if I subcontract everything?
Yes, but your risk profile and coverage requirements may change. You’re still liable for site conditions, so CGL and builder’s risk are essential.