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Industries like construction, renovation, home-building, design-and-build, etc. are prone to encountering liabilities from many different sources.
A liability is defined as a financial obligation. In the world of insurance, liabilities are often tied to legal responsibilities arising from injuries, pollution, property damage, negligence, and the like.
But what type of liabilities do construction companies face? Furthermore, how likely is it that a construction liability will occur? In this article, you’ll discover the construction statistics that answer these questions.
We’ll also look into the kind of insurance you need to protect your business against each type of construction liability that we discuss here.
Without further ado, let’s begin!
What Is a Construction Liability?
When it comes to insurance, a construction liability is a legal/financial obligation that stems from accidental bodily injury, property damage, negligence, and more.
Construction liability is not confined to just general liability, which encompasses third-party injuries and third-party property damage. Third-party individuals include clients, suppliers, and members of the general public. However, general liability is still a major concern because many construction projects take place near third-party individuals and properties.
Apart from general liability, the following are also considered construction liabilities:
- Worker injuries;
- Vehicular accidents (note: although this can injure third-party individuals, this is not considered “general liability”);
- Theft/vandalism of leased equipment; and
- Pollution.
Building & Construction Liability Statistics
22 Construction Deaths in Ontario, 2020
The worst type of construction liability that can befall a company involves death. Properties can be repaired, vehicles can be replaced, pollution can be cleaned up — but there is no going back when a life is lost.
Unfortunately, in Ontario alone, there were 22 construction-related deaths in 2020. Though this may seem like a small number compared to other construction statistics, it is devastating for all parties involved. Therefore, a construction liability concerning death can cost a construction company millions of dollars.
A death count of 22 does not deviate much from that of previous years:
This shows that some construction site hazards are not easily eliminated — even with the evolution of safety protocols.
Because death is an ever-present risk at construction sites, construction companies need to be armed with commercial general liability insurance and workers’ compensation insurance. The former can cover legal fees associated with third-party deaths, while the latter covers employee deaths.
A Recent Spike in Construction Injuries, Amounting to 355 Cases
According to construction statistics released by Ontario’s Chief Prevention Officer, there were a total of 355 injuries in the construction sector in 2020. This number is an all-time high since 2017.
It is important to note that construction injuries do not only affect workers. In some cases, clients and members of the general public can also suffer from construction-related injuries. This is another reason why construction companies must ensure that they have exemplary coverage through workers’ compensation insurance and general liability insurance.
Seventy-five Percent of Non-Fatal Workplace Injuries are from Overexertion, Bodily Reaction, and Slips/Trips/Falls
According to NSC, overexertion, bodily reaction, and slips/trips/falls account for 75% of non-fatal injuries in the workplace. Collectively, these types of injuries are usually caused or compounded by other hazard factors in construction sites, such as:
- Working from heights;
- Working on uneven terrain or amidst debris;
- The presence of harmful substances;
- Needing to make repetitive motions; and
- Needing to perform tasks involving lifting, carrying, pushing, and so on.
Most of the above risks are faced by construction workers. However, harmful substances that leak from a construction site can also affect third-party individuals — especially people who live near the project location. This would be considered an incident of pollution for which a company can be held liable. For this reason, construction companies are recommended to get adequate pollution liability coverage.
Thirteen Percent Of Construction Deaths Over the Last 10 Years Involved Vehicular/Equipment Accidents
Based on construction statistics, being struck by vehicles and heavy equipment is one of the most common reasons behind construction fatalities. This is because most construction sites involve the simultaneous use of heavy machinery, trucks, and other commercial vehicles.
To avoid losses from construction liabilities related to vehicular or equipment accidents, construction companies need the right type of insurance. A reliable commercial auto insurance plan covers vehicular accidents. Meanwhile, accidents from heavy machinery are typically covered by general liability insurance.
One in 1000 Construction Workers Are at Risk of Dying From Electrocution
One in one thousand construction workers is at risk of dying from electrocution. This is simply among the constant hazards of this type of workplace. In order to make sure that death benefits are readily available in case this unfortunate, unforeseen event takes place, getting workers’ compensation insurance is a must.
Mowers and Garden Tractors Are the Most Stolen Contractor Equipment
A report published by the National Insurance Crime Bureau and the National Equipment Register details the most commonly stolen equipment from project sites. At the top of the list are mowers and riding tractors. However, loaders, excavators, forklifts, and bulldozers also made it to the list.
Typically, all of the above equipment are costly to replace. So whether this type of machinery is leased or owned by your company, you can safeguard these physical assets with reliable construction equipment insurance.
Get Construction Insurance That’s Tailor-Made for Your Business
That wraps up our guide on construction liability and related construction statistics. As we’ve covered, there is a specific type of insurance that matches each construction liability. So if you’re looking to fully protect your business, customized construction insurance is highly recommended. This is one of our specialties here at KASE Insurance.
KASE Insurance is an award-winning insurance brokerage firm in Toronto. Whether your business involves construction, renovation, design-and-build services, and so on, we can provide you with an insurance plan that’s customized for your needs.
To get started, contact our team today or request a FREE quote!
(416) 588 5273 
