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You have just entered your client's apartment to fix their kitchen cabinets. In fact, the client is your first client, and you are excited. After all, you have taken the leap to become a small business owner, and nothing can be more special. What's more, you even hired a young man to join your team. Everything is going as per plan. So, when your young employee slipped and cut himself severely, your first instinct rightly was to take him to the emergency room for medical assistance. It's a cut, but a deep one, the doctor says, and you know it's going to come from your pocket. When all the procedures are done, you realize the medical expenses exceed the contract to fix kitchen cabinets.
For most small business owners that conduct skilled trade work, having trades and contractors' insurance can go a long way to protect their business. And in the case of the above example, it does not eat into their profits.
Small business owners offer a much-needed service to their customers. Whether it is helping to build a house, clearing pipes, or ensuring the wiring is code compliant, their services not only play a key role in assisting customers but also the larger economy as a whole.
Why is trades and contractors' insurance so important?
There is immense value in trades and contractors' insurance. Not being adequately covered can have a detrimental impact on your success. Having the right business insurance is a universal best practice for businesses.
Consider the number of ways an employee, supplier, or even client can get injured or how easily materials can be damaged. The simple truth is the inherent risk in these businesses is already prevalent. Most trade jobs already have numerous hazards that a small business owner must be aware of.
It is pertinent for traders and contractors who are now self-employed, with people working under them and having to take care of their own inventory, must find an area of protection. Remember, tradespeople who have become entrepreneurs have worked hard to build their clientele, connect with the right vendors, earn trust and be considered experts in their field. Their entrepreneurial spirit is quite admirable. So as much as you are responsible for bringing in the money and paying taxes, it is vital to have business insurance.
Benefits of General Contractor Insurance
For any contractor, completing a project safely and on time is very important, and by having contractor insurance or trade insurance, small business owners are likely to get these benefits.
- Protection for your workers: When one of your employees is injured while working for one of your clients, your contractor insurance will cover the medical expenses. Not only are you able to keep your employees safe, but you also avoid any costly lawsuits.
- Protection for your tools: In any business venture, small business owners are likely to face their equipment or tools being damaged or stolen. By having contractors' insurance, you can avoid financial loss, as you will be reimbursed and more importantly, your business will run smoothly.
- Protection for your materials: Often, small business owners require a continuous flow of cash to run their enterprise. So, any damage or destruction of materials for a project can have a devasting impact on the business. But with contractors' insurance, you will be reimbursed for the replacement cost, and your project will continue to be on track.
What types of businesses does trades and contractors' insurance cover?
Different businesses will face different levels of risk. For instance, for an electrician, aside from medical expenses, the cost of materials and equipment would differ considerably from that of a carpenter.
By law, you don't require to have any form of business insurance, but having one in your arsenal will always be good. Check for trade insurance in Ontario, and you are likely to find the insurance coverage that covers small businesses owners like
- General contractors
- Small renovation contractors
- Real Estate Developers
- Construction Program Managers
- Program Managers
- Package Builders
You can also find contractors insurance in Ontario and other Canadian provinces for specialized trades, like brick, block, cement and stone masonry, carpentry, drywall and ceiling installation, elevator installation, landscaping services, gardening services, construction equipment operation, electrical wiring installation or maintenance, plumbing and pipefitting, gas work, roofing, sheet metal work and iron and steel work, etc.
What's type of coverage does Trades and Contractors' Insurance provide?
Trade and contractor insurance will protect a small business owner from financial damages that may occur during the course of work, covering a wide range of claims and ensuring a business is not interrupted.
So here are some ways small business owners are covered through trades and contractors' insurance.
Professional liability insurance: Those in construction are likely to know there is a possibility of a delay or an unforeseen issue creeping up. At times, things are outside of your control, leading to mistakes or deadlines being extended. This will, in all likelihood, make the client feel cheated and make them litigious. This is how your professional liability insurance can help small business owners. They can assist small business owners in paying for settlements and legal fees while also providing protection if they are sued for negligence or failure to deliver services.
Commercial general liability (CGL) insurance: CGL insurance covers a variety of things that include employee benefits, accidental client injury, property damage and slander claims.
- Employee Benefits: Businesses can offer employees a variety of benefits. This will help companies attract and retain the best available talent for their team.
- Damage or Injury: Businesses can protect themselves with CGL knowing they are financially covered if, during the course of the project, a client suffers from bodily injury or their property is damaged.
- Liability Claims: For any disputes that may occur either on the job site or at the owner's office, which could be slanderous or libellous, small business owners are protected through CGL insurance.
Contents insurance: For tradespeople, their tools are their business. So any loss, theft, or damage will leave them handicapped in providing their services. Therefore, all tools, from screwdrivers to drills, from supplies to furniture, are included in this policy, and if stolen, broken or damaged will be reimbursed.
Figuring out what level — and how much — insurance you need for your business can be frustrating. We recommend reaching out to a trusted brokerage like Five Star Insurance Brokers to get the best trades and contractors' insurance quotes in Ontario.
They will help you find cost-effective, high-quality trades and contractor insurance in Ontario. With so many coverage options, finding cost-effective but quality coverage for your business and its workers and properties can take time and effort. Five Star Insurance Brokers make it easy by vetting and carefully selecting the best insurer for you.
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