Contractors and Bonding Insurance

Merit’s Contractors and Bonding Insurance gives contractors in Ontario commercial insurance specifically for their industry.

Construction is a booming industry in Canada, employing almost a half million people in the Greater Toronto Area (GTA) and Southwestern Ontario alone. Canadians. Although there are a variety of types of construction project sites and responsibilities, the 2 most common risks that contractors face are liability and property damage. In an industry like construction, contractor insurance is a must-have as it is specifically designed to protect Contractors, General Contractors, and Subcontractors in Ontario against these risks.

Contractors know that safety is everything. Whether on a job site they put extra effort into protecting the owner’s property, themselves, and the safety of those around them. Think of contractor’s insurance as a tool to help keep the business safe. Having the right business insurance is the best form of protection, and can cover you so that nothing that happens on the job site hurts the business’s bottom line.

WHAT IS THE MERIT DIFFERENCE?

Tailored To Your Business

We offer exclusive policies customized to fit your business needs and goals as a business owner.

Create Your Policy In Just A Few Taps

Our smart technology and team of experts do the work to get you insurance policy options to choose from.

Only Pay For What You Need

Our quotes let you save up to 35% on your premiums and trim down your policy to only the coverage details that will benefit your business.

CONTRACTORS INSURANCE

Merit Insurance Brokers are one of the leading providers of contractor insurance in Ontario and we help contractors get the right protection so they can focus on what they do the best worry-free. Here are some insurance coverages to consider for contractors and construction risks:

WHAT IS CONTRACTOR INSURANCE?

Contractor’s liability insurance or general contractor’s insurance is a type of insurance policy that helps construction companies, individual contractors, and subcontractors protect themselves against potential liabilities and with the expenses related to the above risks.

WHY IS CONTRACTOR INSURANCE IMPORTANT?

This industry is a high-risk environment where individuals work with heavy-duty equipment and hazardous materials daily. Contractor insurance can offer protection in the event of accidents or unexpected events for the project owners and their clients alike, as well as to the contractors/subcontractors working for them.

Another consideration for purchasing contractor insurance is it may be a mandatory requirement for some jobs and the client will ask for proof of insurance before beginning a project.

WHAT DOES CONTRACTOR INSURANCE COVER?

The main objective of contractor insurance is to protect companies, contractors, and subcontractors against liabilities, third-party property damage, equipment theft, bodily injuries, or legal and medical costs in the event of a lawsuit. . Here is a list of some coverages available

Business Contents
Machinery and Equipment
Tools
Installation Coverage
Extra Expense
Flex Protect
Crime (including Third Party Bond)
Commercial General Liability
CCDC Liability Compliant
Contingent Wrap-Up Liability Coverage, including Difference in Conditions and Difference in Deductibles
Contractor’s Errors and Omissions Liability Coverage
Rip and Tear Coverage

Contractors and Bonding Insurance | Merit Insurance Brokers Inc.

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We have partnered with a market leader, Foxquilt Commercial Insurance, to protect businesses like yours. Our clients can benefit from Foxquilt’s quote and bind platform to easily access affordable eCommerce, Contractor and Personal Services products.

COMMERCIAL SURETY (BONDS)

Commercial surety bonds, like contract bonds, guarantee that business owners satisfy the security requirements of federal and/or provincial courts, government bodies, financial institutions, and private corporations and protect against financial risk. These bonds guarantee that the business or individual will comply with all required legal obligations.

These commercial surety bonds protect consumers against fraud, misrepresentation, and compensation of monetary loss from the business owner.

Example of a supply and install equipment company. Commercial surety bonds could be used to guarantee the performance of non-construction related contractual obligations, meaning the organization may require a bond so not only does the supplier install the equipment, but it will also service the equipment.

Commonly Used Commercial Surety Products
License and permit bonds
Customs and excise bonds
Lost document bonds

For business clients with a personal need for them, you can also offer fiduciary bonds through an approved Merit insurance provider. Our Merit Brokers work with experienced Surety specialists who provide exceptional customer service and offer unique solutions to help guarantee our clients’ commercial surety commitments.

Click here to get a Contractors and Bonding Insurance quote or contact Merit Insurance Brokers to learn more.

FREQUENTLY ASKED QUESTIONS

What types of insurance do I need to know about for my business?

As a business owner in Ontario, you should consider obtaining insurance coverage for general liability, property damage, business interruption, and professional liability (if applicable). Depending on your industry and specific risks, you may also need to consider additional policies such as product liability, cyber liability, and directors and officers (D&O) liability insurance. It’s important to consult with an experienced insurance agent or broker to determine the appropriate coverage for your business needs.

What is co-insurance?

The co-insurance clause is a common and often misunderstood part of property insurance policies.

Co-Insurance is an agreement between YOU and the Insurance Company, whereby you agree to maintain coverage up to a stated percentage of the value of the property you wish to insure (usually 80%, 90% or 100%).

In the event of a loss, the amount of payout from the insurance company is calculated on a formula.

How to calculate co-insurance?

The simple formula for calculating the coinsurance penalty is: amount of insurance in place / Amount of insurance that should have been in place x the loss, less any deductible is the amount actually paid.

What is a certificate of insurance?

A certificate of insurance is a document that verifies the existence of an insurance policy. In Ontario, it is typically issued by an insurance company and provided to a third party as proof of insurance coverage. The certificate will include information about the insurance policy, such as the type of coverage, policy limits, and the effective dates of coverage.

What is Cyber Insurance?

Cyber insurance is a type of insurance coverage that provides protection against losses related to cyberattacks and data breaches. This insurance policy can cover costs related to notifying affected individuals, legal expenses, and costs associated with investigating and repairing damages caused by cyber incidents. Cyber insurance can also provide resources to help businesses prevent future attacks and mitigate risks. It is an important consideration for any business that handles sensitive customer or employee data or relies on technology for daily operations.

What is Identity Theft Coverage?

Identity theft coverage is a type of insurance policy that can help protect individuals from the financial and legal consequences of identity theft. It typically provides assistance with the costs associated with restoring credit and resolving fraudulent accounts, as well as reimbursement for stolen funds or expenses incurred during the recovery process.

What is a deductible?

This is the part that you pay in the event of a claim. The insurance company covers the rest, up to the $ amount of loss, or your policy’s limits whichever is less. The higher the deductible, the lower your insurance premium and vice versa.

If I cancel my policy, I won’t owe the last month’s insurance right?

If the policy is canceled by you, the calculation of the cancellation is Short Rate. The Short Rate Penalty is based on the days the policy has been in force. Depending on your payment schedule and withdrawal date, there may be an outstanding premium, which is collected after cancellation is processed. If you need to cancel it is always best to cancel the policy on the anniversary date to avoid cancellation fees.

When it comes to business insurance, what is the difference between commercial general liability and professional liability coverage?

The main difference between professional liability and commercial general liability (CGL) insurance is the type of risks that they cover. CGL covers the cost of legal and medical expenses associated with claims declaring third-party property damage or bodily injury because of your business routine.

Professional liability insurance (often referred to as errors and omissions), provides coverage for claims resulting from negligence or failure to deliver a professional service as promised, which could have led to a financial loss on your client’s behalf.