General residential contractor inspecting the roof of a home being built

16 Types of Contractors that Need Insurance

Jun 10 2021

Across Canada, there are more than 376,000 construction businesses and more than 93,000 employers listed as specialty trade contractors. It is a highly competitive sector.

Most of these businesses also deal with high-stakes projects that can potentially endanger people and property during or after completion. Other risks include theft, vandalism, and natural disasters that can sabotage the business or its ongoing projects. These are just to name a few - yet any of these can bring a contracting business to a grinding halt. 

This is why the right type of insurance is crucial for a business to thrive in a competitive landscape, and this goes double for the types of contractors listed here due to their unique risk factors. 

Let’s begin!

1. General Construction Contractors and General Residential Contractors 

Tasked with a variety of construction/renovation projects, general construction contractors and general residential contractors are responsible for ensuring the safety of colleagues as well as people and property close to their operations.

As one of the most dangerous jobs in Canada and the whole world, construction workers need to be protected by insurance in case of injuries, illnesses, and even death. However, the risk doesn’t end here.

For projects like high-rise buildings that general construction contractors are involved in, falling tools, materials, or debris can injure members of the general public and damage third-party property. Risks can also come from vehicles coming to and from the project site.

Meanwhile, general residential contractors need to maintain safety for onlookers (which is often the clients themselves) amidst high-powered tools, scaffolding, overhead newly-installed fixtures, and other hazardous elements. 

Even the structure under construction is under threat to vandalism, theft, weather anomalies, and other external factors. These are just some of the major reasons why construction contractors and residential contractors need insurance

2. Concrete Contractors 

With good workmanship from concrete contractors, concrete is sturdy and reliable; it is thus often used for above-grade and below-grade slabs that need to maintain structural integrity for a long time (e.g. basements, driveways, flat roofs). Therefore, concrete contractors are responsible for ensuring structural integrity. This is why it’s important for concrete contractors to get insurance for completed work. 

Other risks include third-party injury because of high-powered tools left lying around or inadvertent damage to the client’s property due to miscalculations. The right insurance plan covers all of the above.  

3. Masonry Contractors 

Masonry contractors are typically tasked with laying bricks/blocks/stones for walls, sidewalks, fences, fireplaces, and so on. Throughout the course of such projects, the right insurance plan will protect the masonry contractor, their equipment, and their commercial vehicle. Masonry contractors can also be protected from loss in the event of third-party injury and property damage during the course of their work. 

4. Roofing Contractors 

All types of contractors carry the responsibility to make sure that injuries and property damage is avoided before and after project completion. Roofing contractors are faced with added risk because the focus of all their projects is high above the ground. Falling tools, roof tiles, and other materials can easily cause injuries and property damage. Furthermore, faulty workmanship can have even more adverse effects on people and property. This is why roofing contractor insurance is essential. 

Roofing contractor installing roof tiles

5. Ceiling Contractors

Similar to roofing contractors, ceiling contractors are among the types of contractors that always work from a height, installing ceiling panels or repairing ceilings. Because of this, it is important that ceiling contractors secure the right insurance plan to protect themselves from loss in case of (1) personal accidents, (2) accidents that cause injury to others or damage, and (3) mistakes causing the ceiling to collapse later on. 

6. Flooring Contractors 

Compared to other types of contractors, flooring contractors have lower risks when it comes to the nature of the work itself because they do not typically work from heights. However, any defective flooring installations can cause accidents that they can be liable for. Moreover, the right insurance plan will cover uninstalled materials, equipment, and commercial vehicles needed by flooring contractors.

7. Demolition Contractors

Due to the destructive nature of demolition work, businesses that offer this service really need insurance coverage. These businesses regularly use explosives and heavy machinery.  Miscalculations can easily cause third-party injury, worker injury, and splash damage to nearby property. The right insurance plan covers these risks, along with insuring the equipment and vehicles used in operations.  

8. Foundation Repairs 

The foundation of a home or building supports its instructional integrity. Therefore, foundation repair contractors are among the types of contractors that have a very small margin of error. 

When working on projects like foundation repair, lifting, underpinning, and so on, the biggest risk is destruction to the property or those nearby. Injuries can also occur when high-powered materials are used. Moreover, property damage is still a risk after project completion if the foundation shifts. This is why the right insurance plan, that covers these above risks, is crucial.  

9. Waterproofing Contractors

Waterproofing projects involve working on a property’s foundation. So similar to contractors who do foundation repairs, waterproofing contractors are at risk of causing (or being accused of causing) damage to this crucial part of the property. 

Moreover, if there are defects in the waterproofing, the business can be sued for subsequent water damage to the basement’s fixtures or stored possessions. The right insurance plan will protect waterproofing contractors from the above risks and more. 

Waterproofing contractors applying a waterproof coat

10. Plumbing Contractors

The main risk faced by plumbing contractors is that of property damage. Miscalculations can lead to aggravated pipe problems, flooding, or long-term water damage under a drywall/floor. This is why the right insurance plan is crucial. Customized insurance plans can also cover instances of bodily injury, commercial vehicles accidents, and equipment damage/theft.  

11. Electricians 

Electricians are among the types of contractors with a high risk for property damage because faulty electrical components can cause devastating fires. Aside from this, working on electrical components puts the electricians themselves at great risk; the same risk applies to third-party individuals who are observing the work or simply passing by. This is why electricians need the right insurance plan which covers the above risks and more. 

12. HVAC Contractors 

The network of HVAC systems permeates the property and supplies air to all interior spaces. This is why HVAC contractors are at risk of causing inadvertent property damage while the project is ongoing and also being accused of introducing contaminants like mould and legionella after the project is completed. The right insurance plan covers these risks whilst also providing coverage for uninstalled HVAC units and the commercial vehicles used.   

13. Landscapers

Landscapers, unlike other types of contractors, do not regularly work from heights and are typically some distance away from nearby third-party properties (e.g. the client’s home, nearby homes, parked cars).

However, the main risk lies in injuries that can happen before and after project completion. People may get injured from tools lying around, fall into excavated areas, or get injured by landscaping elements once the project is complete. All of these are potential liabilities. The right insurance plan provides coverage for these risks and more. 

Landscaping contractor laying down stone blocks

14. Tree Removal Contractors

Tree removal contractors work from heights and potentially near powerlines. Therefore the biggest risk in this line of work is worker injury. However, falling parts of the tree can also easily cause injury to people below or to nearby third-party property. This is why tree removal contractors need the right insurance bundle to address all these risks. 

15. Hydrovac Contractors

Hydrovac contractors need powerful machinery to do excavation work. Therefore hydrovac trucks need to be insured properly in case of vandalism, accidents, or damage. Hydrovac contractors themselves need to be protected from bodily injury as well because falls can occur when working near excavation sites and trenches. The right insurance plan can cover all of the above risks. 

16. Snow Removal Contractors

Injuries to snow removal contractors (and nearby third-party individuals) are common, whether it’s because of slips or being hit by snow removal equipment/vehicles. The lack of visibility can also cause damage to fences, mailboxes, sprinkler systems, parked cars, and so on. Claims of negligence can also stem if snow removal was not done effectively, leading to third-party injury. This is why snow removal contractor insurance is a must. 

Customized Insurance for Every Type of Contractor

KASE Insurance provides you with customized insurance plans that address the specific needs of your business. Whether you find your specific industry on this list or you are involved in work that faces similar risks, our insurance plans will help protect your business from losses due to unforeseen events.

We’ve helped hundreds of clients from various industries through the years. So whichever industry you come from and no matter the size of your business, you can count on our award-winning services. 

Contact us today or get started with a quick quote!



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