Construction Insurance in Kitchener-Waterloo

Construction projects change constantly. New contractors arrive, materials are delivered, work progresses and the value of the project increases. Each stage can introduce different property, liability, equipment and contractual risks.

All-Risks Insurance Brokers helps contractors, builders, developers and project owners arrange construction insurance in Kitchener-Waterloo and surrounding Ontario communities.

We begin by learning about your business and the projects you undertake. That includes the type of construction you perform, the value and duration of your projects, your use of subcontractors and the insurance requirements contained in your contracts.

As an independent brokerage, we can review options from insurers available through our brokerage and help you build an insurance program suited to your operations.

Planning a new project or reviewing your current insurance?

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Insurance for Different Construction Risks

Construction insurance is not one standard policy. It can include several forms of coverage, each intended to address a different area of risk.

Depending on your business and projects, your insurance program may include:

Builders Risk Insurance

Builders risk insurance, also called course of construction insurance, is designed to protect insured property while a construction or renovation project is underway.

Depending on the policy, coverage may apply to:

The building or structure under construction
Materials and supplies intended to become part of the project
Property temporarily stored at the site
Materials while in transit or at temporary locations
Certain project-related costs following an insured loss

Builders risk policies differ considerably. Coverage for theft, water damage, testing, existing structures, temporary works, soft costs and delay-related expenses may be limited, excluded or available by endorsement.

Responsibility for arranging builders risk may rest with the owner, developer, general contractor or another party. The construction contract should identify who is responsible for purchasing the policy and which parties must be included.

Commercial General Liability

Commercial general liability insurance may respond to covered claims alleging third-party bodily injury or property damage arising from your business operations.

It may also include products and completed operations coverage for certain claims arising after your work has been completed. The available coverage, limits and exclusions should be reviewed carefully.

Contractors’ Tools and Equipment

Tools, machinery and mobile equipment are not necessarily covered by a builders risk policy.

Separate contractors’ equipment coverage may be needed for items such as:

Hand and power tools
Generators and compressors
Skid steers and excavators
Scaffolding and temporary equipment
Equipment leased or rented from others

We will discuss where equipment is stored, how it is transported and whether it is owned, leased or rented.

Commercial Auto Insurance

Vehicles used for construction operations generally require commercial auto insurance.

Coverage may be needed for company-owned:

Pickup trucks
Cargo and service vans
Dump trucks
Trailers
Other vehicles used to transport workers, tools or materials

The vehicle policy and any trailer or equipment coverage should be reviewed together so that responsibilities and potential gaps can be identified.

Installation Floater

An installation floater can help insure materials, fixtures or equipment that will become part of a project.

Depending on the policy, coverage may apply while insured property is:

In transit
Temporarily stored
Awaiting installation
Being installed
Undergoing certain forms of testing

This coverage may be particularly relevant to mechanical, electrical, plumbing and other contractors supplying materials or equipment as part of their work.

Pollution and Environmental Liability

Construction activities can create environmental exposures that may not be fully covered by a standard liability policy.

Contractors pollution liability may be considered when work involves excavation, fuel storage, mould, asbestos, contaminated soil, water intrusion, chemical use or the accidental release of pollutants.

Professional Liability

Contractors involved in design-build work, construction management, engineering coordination or other professional services may face claims alleging errors in their professional advice or design-related responsibilities.

Professional liability insurance is separate from commercial general liability and should be considered when the contractor assumes professional duties under the contract.

CGL and Builders Risk: What Is the Difference?

Commercial general liability and builders risk address different risks.

Commercial General Liability	Builders Risk
Primarily addresses covered claims alleging bodily injury or property damage suffered by third parties	Primarily protects insured project property while construction or renovation is underway
May include products and completed operations coverage	May include the structure, materials and supplies forming part of the project
Responds according to the insured contractor’s legal liability and the policy terms	Responds to insured physical loss or damage, subject to the covered causes of loss and policy terms
Does not replace property insurance for the project itself	Does not replace the contractor’s general liability insurance

A contractor may need one or both forms of coverage depending on the project and contract. Responsibility for arranging builders risk should be confirmed before work begins.

Wrap-Up Liability for Larger Projects

Two of the most common forms of construction insurance are Commercial General Liability (CGL) Insurance and Builders Risk Insurance. While they are often purchased together, they serve very different purposes.

A wrap-up liability policy is a project-specific liability program that may cover an owner, general contractor and enrolled subcontractors for defined operations performed on a particular project.

Wrap-up programs may be owner-controlled or contractor-controlled. They can provide consistent project-specific limits and terms for participating contractors and can help coordinate the handling of claims involving multiple parties.

However, a wrap-up does not automatically cover:

Every contractor or consultant involved in the project
Work performed away from the designated project
Commercial vehicles
Contractors’ tools and equipment
Professional liability
Pollution exposures
Every completed-operations claim
A contractor’s work on unrelated projects

Contractors enrolled in a wrap-up may still need to maintain their own practice policies. The wrap-up wording, enrollment requirements, deductibles, exclusions, project limits and completed-operations period should all be reviewed before work begins.

Wrap-up liability is generally considered for larger, longer or more complex projects involving multiple contractors. It is not automatically the best or least expensive solution for every project.

Who May Need Construction Insurance?

Construction-related insurance may be appropriate for:

General contractors
Construction managers
Residential and commercial builders
Developers and project owners
Renovation and remodelling companies
Excavation and site-preparation contractors
Concrete, masonry and structural contractors
Framing and carpentry businesses
Mechanical, electrical and plumbing contractors
Trade contractors and subcontractors

The coverage required will depend on the work performed, project value, contract, employees, subcontractors, equipment and previous claims experience.

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Contracts, Certificates and WSIB Clearances

Construction contracts frequently contain detailed insurance requirements. These may include:

Minimum commercial general liability limits
Additional insured status
Products and completed operations coverage
Non-owned automobile liability
Contractors pollution liability
Professional liability
Builders risk requirements
Wrap-up enrollment
Specific certificate or endorsement wording

Send the insurance section of a proposed contract to your broker before signing whenever possible. Your broker can help identify requirements that may not be included in your existing insurance and determine whether the requested coverage is available.

A certificate of insurance provides evidence of certain policy information as of the date it is issued. It does not replace the policy or automatically amend coverage.

A WSIB clearance is a separate document. Contractors and the parties retaining them should confirm their obligations directly with the WSIB.

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Frequently Asked Questions

How much does construction insurance cost in Kitchener?

The cost depends on your operations and the coverage being arranged.

Insurers may consider:

The type of construction you perform
Annual revenue, payroll and construction values
Residential and commercial work
New construction versus renovation work
Project size and duration
Employees and subcontractors
Equipment and vehicle values
Previous claims
Coverage limits and deductibles

A detailed description of your operations is necessary to obtain a meaningful quote.

Do I need builders risk if I already have CGL insurance?

Commercial general liability and builders risk insure different exposures.

CGL primarily addresses certain claims made by third parties. Builders risk primarily protects insured project property during construction.

Whether you need builders risk—and who is responsible for arranging it—depends on the contract, project and existing insurance.

Is construction insurance legally required in Ontario?

There is no single policy called construction insurance that every Ontario construction business is legally required to purchase.

However, insurance may be required by a client, lender, landlord, municipality, project owner or general contractor. Certain legal and regulatory requirements may also apply to commercial vehicles, workers and WSIB registration or clearances.

Requirements should be reviewed for each business and project.

What is Wrap-Up Liability Insurance?

Wrap-up liability is a project-specific insurance program that may cover an owner, general contractor and enrolled subcontractors for defined work performed on a designated project.

It does not necessarily replace every participating contractor’s own insurance. The policy wording and enrollment documents should be reviewed to understand who and what is covered.

Does builders risk cover project delays?

Not automatically.

Certain policies may offer soft-cost or delay-related coverage when a project is delayed because of an insured physical loss. Ordinary scheduling problems, labour shortages, financing issues and weather delays are not necessarily covered.

The cause of the delay and the exact policy wording will determine whether coverage applies.

Get a Construction Insurance Quote

Every construction business and project is different. Coverage that was appropriate for a previous project may not meet the contractual requirements or exposures of your next one.

Whether you are bidding on new work, expanding your operations, beginning a major project or reviewing your existing insurance, All-Risks Insurance Brokers can help you assess your needs and explore available coverage options.