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Why is it necessary to have Construction Insurance in Canada?

Construction is one of Canada's big business industries, and it provides jobs to more than 1.2 million Canadians. The compound annual growth rate is up to 8.5% by the year 2024, and it makes growth around $354.9 billion. Due to its increasing growth, it is also essential to get it insured so your workers can work without any worry and efficiently.

 

Planning for future risk management and construction coverage insurance for any construction company is key to staying ahead. However, there are two common types of risk are involved 

  • Property damage
  • Causing injury to third party

 

All the contractors, electricians, renovation contractors, and HVAC technicians need to obtain a minimum of $200,000 contactor liability insurance and maintain valid construction insurance in Canada. In a risk-laden construction business and for a risky environment, construction coverage insurance in Canada is a must.

 

This Construction insurance in Canada will protect the contactors, companies, and sub-contractors safe from third-party liability. This insurance not only gives you peace of mind, but it is also mandatory for business. 

 

Why is it essential to have a construction policy, and how is it beneficial for your business?



  1. Protection against Financial Loss

Canadian groups are forced to shell out millions of dollars every 12 months for lawsuits filed through customers. Some solo contractors thought they were free from this law because they work solo or have fewer employees. But it doesn't matter how many workers there are; there is always a chance of an accident. However, you are liable as owner after the injury, and you are forced to cover the bodily injury or property damage.

 

The builder's risk insurance will provide you with the funds to pay for the amount of the settlement that is associated with the third-party lawsuits. If you are not taking this insurance, you have to bear this expense to pay the injury amount out of your pocket. 

 

2.            Moral Obligation

While you are at it, you should understand that some law in Canada requires all the contactors to maintain and obtain construction coverage insurance. In some areas, it is illegal if you are serving the clients without having an appropriate policy and the right amount of coverage. It is something that comes under your moral obligation as a citizen of Canada. Consult with a professional lawyer and get the right amount of property insurance to avoid huge losses and lawsuits. 

 

 

3.            Customer Expectations

Even the consumers in Canada expect their contractors to have valid contractors' insurance policies. However, they are likely to ask about it before hiring your services, and if you don't have it, you may lose the job. Roofing contractors are the most common type of professional that always asks about your certificate of insurance before the owners are allowed to work on the property.

 

However, customers are not very well aware of protecting themselves if any claim arises. It is worth it because Canadian consumers are not going to work with uninsured companies. That is why you should take builders' risk insurance to work safely.  

 

Now that you know all the importance of Construction insurance in Canada buy it from a trusted and reputed insurance solution provider in Canada. Ches Special Risk is the best insurance company in Canada for dealing with construction insurance and other commercial insurance plans. For any other further enquiries contact them here.

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