Why Manitoba Contractors Need Business Insurance

What Insurance Do Manitoba Contractors Need?

June 24, 2024

Contractors insurance is an essential tool. The unexpected can happen on a job site and it can impact your Manitoba contractor’s business financially.

As a Manitoba contractor or skilled trades worker, contractors insurance protects you from on-the-job risks.

Do I need insurance as a Manitoba contractor?

Yes, commercial general liability insurance is recommended for Manitoba contractors because lawsuits are generally expensive and can be financially devastating for your business.

You can be asked to show a certificate of insurance or proof of insurance as a Manitoba or Winnipeg contractor. Without a commercial general liability (CGL) insurance policy you may not be able to request a certificate of insurance.

CGL insurance protects you and your business from potential third-party (clients/suppliers) bodily injury or property damage claims.

You can expect to carry at least $2 million in CGL insurance as a general contractor, and probably more.

How much does Manitoba contractor insurance cost?

It will depend on the size of your business and the services you offer. It will also depend on your location, number of employees, revenue, and any past claims. There is no one-size-fits-all insurance price for Manitoba or Winnipeg contractors.

What kind of construction insurance do I need as a Manitoba contractor?

Commercial general liability insurance: Construction sites can be dangerous places, especially for any visitors like your client or supplier. If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your business in court, as well as costs to cover damages to compensate third parties.

Again, it’s recommended that you should have at least $2 million in coverage, depending on the size of your Manitoba or Winnipeg construction business.

What kind of risks does CGL insurance cover?

Injury to another person who is not your employee
Damage to someone’s property
Damage to rented property
Medical bills if someone is injured
Legal costs and settlement costs of liability lawsuits filed against you
Liability lawsuits related to slander and libel

You should also make sure that any subcontractors you work with have their own CGL insurance. Your policy will cover your employees but typically not subcontractors. If a subcontractor damages property at a job, you could be held liable.

Commercial property insurance: Whether you rent or own your business location, this type of insurance can provide financial coverage in the case of a fire that destroys or damages your business property and its contents.

Commercial property insurance also protects your Manitoba place of business or office and its contents from damage or loss related to severe weather, natural disasters, theft, and vandalism.

Mobile property insurance: If you regularly move equipment across different locations, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken offsite.

Mobile property insurance covers transit and theft that could happen due to property not being stored in a secure location, as opposed to commercial property insurance that covers property generally expected to be in a designated location.

Tools and equipment insurance: Tools and equipment Insurance can help cover the repair or replacement of tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.

Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.

Course of construction insurance: Course of construction insurance, also known as builder’s risk insurance, insures buildings or projects under construction against the costs of repair or replacements in the event natural disasters such as a flood, fire, explosion, theft, or vandalism. It should be considered as essential to your Manitoba contractors business.

Business interruption insurance: This type of insurance supports you when your Manitoba contractors company can’t operate due to a covered loss.

There are a number of losses that can force your business to shut down. Some examples are:

Damage to your equipment from fire or vandalism
A major reduction in revenue due to a client/supplier facing losses of their own
A disruption in your supply chain

Business interruption insurance can help with these expenses:

Payroll
Rent
Utilities
Property taxes
Alarm monitoring
Relocation of your business

Commercial auto insurance: When you or your employees are on the road travelling from the shop to a job site and anywhere in-between, commercial auto insurance can help cover your vehicles in case of an accident. Your personal car insurance will not cover you if you get into an accident.