Don’t Skimp on Liability Limits

$1,000,000 or $5,000,000? We recommend the highest limit you are comfortable with. The cost of liability insurance is not linear, a $5,000,000 limit will not cost much more than a $1,000,000. At the minimum, we recommend a $2,000,000 limit.

Sometimes a client will require proof of liability insurance or to be added to your policy which can easily be done through any device with an internet connection. In the situation where increasing your limits are required by an important client or contract, that can also be quickly changed, too.

Equipment

Heavy equipment you use to do your job are vital to insure. The most common coverage for equipment is “All Perils” or “All Risks”. This will insure you against the most common types of risks, including collision, upset, fire and theft.

Some optional coverages to consider include:

• Replacement Cost valuation (qualifying model years)
• Temporary Replacement Physical Damage (30 days)
• Rental Expense Reimbursement

Tools

Business contents should be insured but there are exclusions for tools which have the inherent qualities of being mobile and usually more expensive making them susceptible to theft.

Tools are separately insured under a proper “All Risks” Tool Floater. These are insured for a higher rate than regular business contents. To save money you could try out options of higher deductibles.

Installation Floater

An Installation Floater covers your materials, supplies, equipment, fixtures, machinery, and other business property while in the process of being installed.

Whether your property is being stored, is in transit to a client’s site, or is in the middle of being installed, an Installation Floater will protect it—and you—from loss. Essentially, your property will be covered from the moment it leaves your business premises until the project is complete and the installation has been accepted by your client.

Example:

Your company has been hired to install new hardwood flooring at a customer’s home. On the way to the job site, your truck is involved in an accident, causing your truck to overturn and damaging the hardwood flooring you were transporting. The Installation Floater would provide funds to replace the damaged flooring.

Legal Expense Insurance

Legal expenses insurance offers protection for contractors from the often significant legal fees associated with litigation.

Legal expenses insurance helps to provide financial assistance for a range of necessary legal services should you face litigation. These can include:

• Legal expenses insurance will cover the fees charged by lawyers and legal representatives while they are working on your case.
• Legal expenses insurance covers all associated court fees so you aren’t left out of pocket.
• Legal expenses insurance covers any costs associated with witnesses or experts as well.
• Translation Fees: Legal expenses insurance covers the translators fees so your case can proceed.

Worker’s Compensation

In Canada, contractors should contact their local provincial Worker’s Compensation Board to determine their requirements for obtaining coverage for both their employees and themselves.

Click on the logo above to see a list of provincial WCB and contact information.