Specialty and general contractors have distinct activities and therefore different insurance needs. Unlike general contractor insurance, coverage for specialized contractors considers the specificities of the trade, and in addition to covering the risks common to all construction and renovation projects, protects the contractor from the particular risks to which he is exposed in the course of his business.

General Contractor's Insurance

A general or specialized contractor's work is usually carried out away from his premises. He must therefore take out an insurance policy covering his professional civil liability, company vehicles, machinery and tools, and buildings under construction and once finished.

If the general contractor subcontracts part of the work or obtains a public contract, he is obliged to take out worksite insurance covering materials and labour time in the event that work has to be resumed following a loss. Alternatively, you can opt for a comprehensive wrap-up policy.

Regardless of the basic coverage, you can also benefit from optional supplementary protection for:

• Contractor's Errors and Omissions Liability
• Defective Workmanship Coverage
• Specific Worksite Coverage: You are covered for worksites and property under construction/installation, including coverage for delays in starting work and ancillary costs
• Deductible Deviation Coverage – Collective Work
• Replacement Value of Contractors' Equipment
• Insurance Against Penalties for Breach of Contract
• On-Site Portable Tools and Equipment
• Installation Risks
• Goods in Transit
• Insurance Against Misappropriation, Disappearance, and Destruction
  

Specialized Contractor Insurance Meets Specific Business Needs

Specialized contractor insurance includes the coverage included in general contractor insurance, with extensions to cover risks specific to the activity. For example, professionals such as electricians, roofers, plumbers, heating and ventilation equipment installers, alarm system installers and crane operators generally add installation risk coverage to cover their materials and labour time, and machine breakdown coverage for on-site commissioning and testing of electrical or pressure equipment.

Since most specialty contractor contracts are tailored to the specific needs of the activity, a variety of coverages can be included in the policy, for example:

• Pollution insurance. Commonly taken out by companies in the petroleum industry, or specializing in asbestos removal and mould remediation, this type of insurance protects against damage caused by volatile particles.
• Insurance for specific projects such as factories, warehouses, hospitals, highways, bridges, aqueducts, tunnels and all non-residential buildings.
  

In addition to specialized or general contractor insurance, contractors are required to obtain a license bond to meet the requirements of the Régie du bâtiment du Québec. This is a financial guarantee of up to $10,000 for a specialized contractor and $20,000 for a general contractor, which protects customers in the event of prejudice due to non-performance or faulty workmanship, even if the company is bankrupt.