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Under a Contractor Controlled Insurance Program (CCIP) in Ontario, a general contractor sponsors and controls the program. CCIPs can help contractors lower their total cost of risk. This is accomplished by centralizing the purchase and administration of insurance, either for a single job site or across all of a general contractor's projects. Other benefits of CCIPs relate to the following:
CCIPs can give general contractors peace of mind, as they ensure that subcontractors are properly insured. In addition, because there are fewer insurance policies to consider, CCIP claims are streamlined and easier to manage.
CCIP coverage is typically cheaper than having parties purchase their own insurance policies.
Program sponsors - who are working in conjunction with their brokers, the insurer, and safety professionals - can maintain centralized safety and risk management services. By centralizing these services, program sponsors can reduce the frequency and severity of injury and property damage claims.
CCIPs can also provide general contractors with the ability to include subcontractors on a project who might otherwise not be able to bid on the job, given their limited scale and experience.
By covering all of the parties on a project under one policy, wrap-up programs reduce coverage disputes and subrogation issues between insureds and insurance carriers for covered claims that occur on the job site.
As a contractor, you work hard to create a quality product and satisfy customer expectations while building a profitable business. However, no matter how careful you and your employees are during the course of business, mistakes do happen.
In today's business environment, small disputes with customers over projects can quickly escalate into costly legal disputes.
Almost every contractor carries some form of Commercial General Liability (CGI) coverage. While these policies provide much-needed protection for bodily injury and property damage claims that occur as the result of a contractor's work, they typically don't account for all forms of negligence.
Errors and Omissions (E&O) policies can help contractors close gaps in their insurance coverages, providing coverage for claims related to the following:
As a contractor, there are a variety of insurance products to consider in Ontario. To ensure you are accounting for all of your unique risks - and to secure a policy that is tailored to meet your specific business needs - it's important to work a qualified insurance broker.
For electrical contractors, it is recommended that you have Commercial General Liability (with a minimum coverage of $2,000,000), including Contractual Liability, Cross Liability, Severability, Property Damage, Bodily Injury and Completed Operations. It is also recommended to have Contractor’s Tools Coverage, Installation Floater, Environmental Liability and in some cases Failure to Perform or Weakening of Support.
Yes, all contractors need insurance. Electrical contractors who enter into client’s buildings for jobs will require Commercial General Liability to provide coverage for third party property damage and bodily injury. In the event that there is a loss months down the road, Completed Operations provides coverage if a loss or claim were to occur as a result of an Electrical Contractor’s negligence.
On many occasions where you are hired as a subcontractor, a general contractor will require you to show proof of insurance prior to entering the job site. Purchasing a policy will allow you to take jobs requiring insurance.
If a claim has occurred or a client provides you with a statement of claim it is important to contact your insurance broker as soon as possible to have them begin the claims process.
It is important to keep note/file of everything as you may be asked to provide documentation.
An insurance adjuster and you insurance broker will work with you to help navigate the claims process, ultimately ensuring this runs smoothly and is fair to all parties involved.
All electrical contractor’s insurance needs are different and they should have an insurance broker discuss their specific operations and requirements. It is important to be covered for all of your operations. For example some contractors may do alarm system installs, some might not, some might do commercial, some just residential. These will all affect the specific insurance program and what the individual needs are.
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