Construction Insurance – Ontario
Creating and building a commercial space is a complex project, to say the least. From the initial planning stages to handing over the keys, there’s a lot that goes on in between. Damages or losses to the building can happen at any time, and if the project goes without coverage while being completed, a significant investment is very much at stake. Construction and development coverage can help look after your construction project from the planning stage, right through to completion.
As your local insurance experts, we know that each business in Ontario is unique in its own way. From small commercial builds in Kenora to larger builds located in Thunder Bay and every building project in between, we’ve got you covered. With all it has to offer, it’s not hard to understand why so many people decide to set up shop in Ontario.
We understand it’s vital to protect what’s most important to you and your business. Our expert insurance advisors are here to ensure you’re protected and provide peace of mind so you can focus on nurturing your business for the future.
Why Choose Westland?
We know that your business insurance needs to match your goals, your business and your budget. Our expert business insurance advisors get to know you and your business, so that they can tailor a policy to your exact needs. We’ll work with you to build a risk management solution, ensuring coverages line up with your business needs.
We understand that insurance can be complex sometimes. Let our expert insurance advisors do the heavy lifting! We’ll help you find a policy that you feel is the best fit and provides peace of mind. To learn more about the benefits of being a Westland client, click here.
Construction & Development Insurance Explained
During construction, there’s a lot to keep on top of. To ensure that the project is completed on time, there are many moving parts to consider during the build. Before ground is broken, it’s essential to ensure that the project has coverage for the duration of the build. What would happen to the investment or your company if the build was 80% completed and suffered a fire resulting in a complete loss? Insurance isn’t just for finished, move-in-ready structures.
No matter the industry, our business insurance advisors can help you find the right coverage to ensure your business is covered if there’s a loss during the course of construction.
This is a bit of a trick question. A builders risk policy and a course of construction policy are essentially the same coverage. Builder’s Risk (also known as C.O.C.) policies insure the building against physical loss or damage while it’s being built or renovated.
Coverage can be placed by either the building owner or the general contractor. Both can purchase C.O.C. coverage for a project. Ultimately, the interest of both the owner and their contractors is covered under this policy.
The insured value on a Builder’s Risk policy or construction insurance should reflect the actual, completed Replacement Cost of the building. For example, if the project burns to the ground the day before handing over the keys, the limit of insurance needs to be adequate to replace what may be lost.
Before a shovel hits the ground, a Course of Construction policy should be in place. If the policy is placed later in the project, you may run the risk of the insurance company charging back for time since the project began. On the other hand, some may not want to insure the project if it’s started already. This is because insurers price construction policies based on both the completed value and the time it takes to complete. That’s why a C.O.C policy should be on your list very early on in project development.
All contractors should carry their own liability insurance policies. Still, it can be difficult and time-consuming for a general contractor or a project owner to chase down every sub-trade to make sure they have coverage on large builds. A wrap-up liability policy is a one-time, project-specific business liability policy that provides coverage for all parties involved in the project. Those include the owner, general contractor, contractors, sub-contractors, consultants and suppliers who perform work on the project site. It’s a safer and more time-effective way to ensure that nobody on your job site is uninsured against claims for third-party damage or injury.
- Certainty that all parties involved in the project have uniform business liability insurance coverage, limits, and deductibles
- These limits of liability are dedicated to the project and will not be eroded by claims that a contractor may have involving other projects or services
- Eliminates the administrative headache of collecting and managing Certificates of Insurance from each and every party involved in the project
- The claims management process is simplified with a single wrap-up policy vs. multiple insurance policies carried separately by each and every party involved in the project
- Cost savings
Canadian Construction Documents Committee (CCDC), standard contracts typically call for project equipment breakdown insurance to be carried jointly in the names of the Owner, Contractor, Subcontractors and Consultants.
Course of Construction/Builder’s Risk insurance policies will exclude loss or damage that’s caused by impairment and/or breakdown of building mechanical and electrical equipment. Examples of breakdown include heating, ventilation air conditioning, boilers, pressure vessels, electrical switchgear, or other building systems.
On the other hand, Construction Project Equipment Breakdown Insurance Coverage insures against loss or damage arising from the sudden and accidental physical damage to equipment. This then requires its repair or replacement during the course of a building’s construction including the testing and commissioning phase.
We can help with your auto insurance needs too! Connect with us today to ensure you’re covered out on the road.
How Much Does Construction & Development Insurance Cost in Ontario?
Just as businesses differ across Ontario, so do the risks and exposures which impact the cost. The following factors will impact the cost of your construction and development insurance coverage:
- Value of the Project
- Misc. Tools
- Type of Project
- Contractual Insurance Requirements
- Claims History
- Construction Material
Review Your Insurance and Get a Quote with Westland
Ready to discuss your insurance needs? Our expert advisors are here to review your current insurance policies, discuss your unique risks and operations, and find the perfect insurance policy for your business. Whether it’s over email, the phone or in person we are ready to help! To get started on a quote now and see price estimates for your business coverage, click the button below. Our advisors will contact you right away and help navigate your risk management needs. Of course, we are always available to talk over the phone or in person. Check out our locations page to connect with an office closest to you!
Construction claims can range from theft of equipment at the project to fire. For example, there could be torch work on the project site that sparks a fire. Depending on the severity of the fire, damages and resulting costs can add up quickly. The right construction insurance policy will help mitigate these risks and get you back to your normal as quickly as possible.
Our goal is to find the best coverage for your business so you can focus on what’s important. To learn more about being a Westland client, click here.
10 Ontario Business Facts
- Niagara Falls is one of the largest draws to Ontario. In fact, it welcomed 12.9 million visitors in 2017 and tourism expenditures reached a whopping $2.4 billion!
- It comes as no surprise that Toronto is a big player in the film and television production sector. Often being called the Hollywood of Canada, over 25% of Hollywood movies are filmed in Toronto.
- Fishing is a beloved past time in Ontario, but it’s also an economic driver. With over 1.12 million anglers on Ontario water a year, they spend $1.6 billion a year in the province, whether at remote fishing lodges or supporting small angling businesses.
- Ontario is one of the most multicultural places in the world. It’s home to many festivals including Caribbean Carnival, Jazz Festival and Oktoberfest. In fact, there are over three thousand festivals each year.
- Ontario has a thriving agricultural sector. The province contributes to almost a quarter of all farm revenue in Canada. The top crop productions are soybeans, corn and winter wheat.
- Forestry is another large industry in Ontario, supporting over 53,000 jobs. In fact, the forests of Ontario cover a land area close to the size of Italy, Germany and the Netherlands…combined.
- Ontario is the national leader when it comes to manufacturing. Automotive, textiles, electrical goods and farm implements contribute to an industry that employs about half of Canada’s manufacturing jobs.
- The Royal Ontario Museum is the largest in Canada, and the fifth largest in all of North America. It sees a total of one million visitors a year who stop by to see many collections in over 40 galleries.
- Another driving force for the province is the food processing industry. Ontario has over 3,000 companies that make both food and beverage products. Companies include Kraft, Nestle, Kellogg’s, Coca Cola and PepsiCo.
- With over 25,000 restaurants in Ontario, it’s not surprising that some famous dishes have originated in Ontario. The Hawaiian pizza didn’t originate from the islands of Hawaii, rather at the Satellite Restaurant in Chatham!