Construction

Civil liability coverage protects you from property damage or bodily injury that you may involuntarily cause to a third party or to one of your clients, anywhere your activities take place. As a result, this coverage is necessary in order to protect your business in the event of a legal action or a claim attributable to your operations, your products, your places of business or your work. It is important to properly assess the chosen limit in relation to the actual risk because the consequences could be catastrophic for the survival of your company.

Adding the executive risks coverage, also known as “D&O”, allows your company’s directors and officers to be covered. These directors and officers carry the responsibility of acting in the best interest of the company. Whether you are the member of a board or run a company, you could be held personally liable of any wrongful act in the management of a company. This insurance also covers defence costs in the event of allegations or legal action brought against members of a board or business executives.

Professional liability is also known as “E&O” or Errors and omissions insurance. This insurance provides coverage to hedge against financial loss that you may cause to a third party following professional negligence resulting in the negligence of your work. Professional liability would also cover defence costs in the event that your client decides to sue you.

Wrap-Up liability for contractors offers coverage for your own liability but also for subcontractors working on the project. You may be held liable for damage caused by another contractor on your work site. Wrap-Up liability allows for all subcontractors to be insured under one policy instead of each subcontractor having to be covered for civil liability.

Adding this coverage to your construction insurance contract covers the cost of repair or replacement of inadequate workmanship. Inadequate workmanship is defined as work that does not meet the requirements of the client or the current standards.

For example
A contractor installs ramps to make the stairs in a plant safer. After the installation, the client mentions to him that the ramps do not respect the minimum height required by the building code. The cost for removing the ramp and reinstalling a new one will then be covered by this faulty workmanship extension.

The contractors’ equipment and tools, and equipment rented from others floater covers direct damage to your property, wherever they may be:

– On the work site or on the project location
– In transit
– At non-designated temporary locations

As its name indicates, this insurance covers accidental damage to property that you lift, lower or move using a crane or lifting equipment.

By adding this coverage to your insurance contract, the expenses associated with the destruction (rip) or removal (tear) of defective concrete are covered. It may happen that the concrete poured into the forms does not properly set. As such, if an accredited testing agency determines that the concrete does not meet the construction specifications, the cost of removing it will be covered by your insurance.

Are insured:
– the cost of removing defective concrete
– the cost of replacing the forms, braces, pipes, electric conduits and other required material
– the cost of returning the structure to the same condition it was before the concrete was determined to be defective
– Any concrete that has been prestressed, precast, ready-mixed, as well as asphalt, sand, gravel and urea formaldehyde

This insurance covers the cost of material and manpower needed for work to be redone in the event of damage caused to an insured work site. The right of subrogation is very limited in builder’s risk insurance because subcontractors are considered unnamed insureds. Builder’s risk and/or installation does not cover damage to contractors’ equipment or to the insured’s or subcontractors’ tools.

This insurance covers damage caused by pollution resulting from a sudden and accidental or continuous and gradual event, depending on the type of contract. As a result, your company will be protected in the event of pollution from the discharge, dispersal, release or escape of solid, liquid or gaseous substances in the atmosphere, in the water or in water lines, sewers or drainage systems. It can also include coverage against fines and penalties.

Surety bonds can fall into two categories:

Surety bond for contractors
Whether it is for a bid, a contract or labour and material payment, a surety bond assures the performance of obligations assumed under contract. For example, it guarantees the creditor that the contract will be fulfilled within the forecasted timeframe and agreed price. This type of surety bond is also called a contract bond.

Commercial bonds
This bond allows you to obtain a license or a permit in order to deal with government agencies. Therefore, you are guaranteeing that you will comply with a law or municipal by-law in order for your company to respect current standards.