Contractor Insurance Tips


The construction industry comes with a high risk for accidents and damage and can be very costly. Damage to property and personal injuries can cost the contractor significant amounts of money. A Construction Insurance policy can help protect contractors if a claim was to arise.

Do Contractors need insurance?

The short answer is yes; all contractors should have liability coverage and may also want to consider coverage for tools, equipment, and business personal property.

Accidents are common in the construction industry. A Contractor should carefully consider his or her liability exposure as a professional in the Alberta construction industry. A contractor could be named in a workplace injury lawsuit brought forth by a tradesperson. Even if the contractor is not found responsible, there could still be significant defense costs. Contractors should discuss their insurance options with a Westland Insurance advisor in Alberta to ensure adequate coverage for potential liability exposures.

For more information on the types of commercial policies available in Alberta visit Alberta Business Insurance or Alberta Business Liability Insurance.

Why does a building under construction need insurance?

A building under construction should have an insurance policy in place prior to the project commencing. A loss can occur at any time, even if the building is not complete. It is important to insure against property damage and physical damage to equipment and materials during the course of the construction as damage to materials and cleanup costs can add up quickly. A Builder’s Risk Policy or Course of Construction Insurance policy can be complicated so it is best to discuss the project in detail with an Insurance Advisor in Alberta.

Important considerations for contractors:

  • Contact an Insurance Advisor or Risk Manager to conduct an insurance audit and identify potential risks
  • Ask your insurance advisor to ensure you have the appropriate coverage to meet the needs of the project and your business operations.
  • Many projects run longer than expected. It is important to ensure coverage on the project remains in place throughout the necessary time period.
  • Conduct a regular review of coverage limits with your insurance broker. The cost of projects can often increase and policy limits may need to be increased to provide proper protection.
    Visit Small Business Insurance for more information on business insurance for small businesses in Alberta.

Westland has over 80 locations in Western Canada including, Calgary, Grande Prairie, Lethbridge, Red Deer, Brooks, Medicine Hat, Settler, High Prairie, Hythe, and Coaldale.

Call 1-888-259-2747 for more information on Commercial Insurance in Alberta offered by Westland Insurance.