As far as small businesses go, independent contractors are often on the higher end of the risk scale.
Often working on a variety of properties, usually with tools and heavy equipment that could be dangerous if not used properly, running a contracting business can be challenging, rewarding and risky.
WHAT TYPES OF CONTRACTORS HAVE THE MOST INSURANCE CLAIMS?
While all types of independent contractors deal with risk on the job, not all contractor types are the same when it comes to the potential for accidents and how many insurance claims they make.
The types with the most claims are usually the ones who pay the most for commercial liability insurance. Some insurance companies choose not to offer policies for some contractor types based on their risk level.
On the higher end, we have the likes of:
- Landscaping & snow removal companies
- Roofing contractors
Mid-range examples include:
- Carpenters
- HVAC Technicians
On the low end we have others like:
- Bricklayers
- Painters
- Flooring Specialists
Are you a contractor? Contact us anytime to receive a commercial insurance quote.
WHAT ARE THE MOST COMMON TYPES OF CONTRACTOR INSURANCE CLAIMS?
In 2019, there was $3.56 billion worth of liability claims made in Canada. (1).
With Global Construction Perspectives predicting that Canada will be one of 8 countries that account for 70% of global construction growth by 2030, this number will likely rise.
The most common liability insurance claims for contractors are:
- Property damage
(i.e. a carpenter drills too deep in the wrong spot and hits a pipe that causes water damage)
- Property damage
- Personal injury
(i.e. a passerby gets hit with flying debris or snow while a landscaper is working)
Other common types of independent contractor insurance claims include:
- Traffic accidents
Auto accidents, in general, are all too common, so it makes sense that commercial vehicles have their share of accidents while travelling between jobs.
- Traffic accidents
- Theft
Burglars have been known to target contractors for their expensive tools, equipment and inventory.
HOW CONTRACTORS CAN AVOID INSURANCE CLAIMS
- Put safety first.
Take the time to train yourself and your workers on the most up to date safety practices and keep it front of mind while on the job.
- Put safety first.
- Stay organized.
Keep your equipment well maintained and stored safely. Keep the job site neat by cleaning as you go and making sure everything is put away at the end of each day to avoid theft or injury after hours.
- Stay organized.
- Hire the right people.
Whenever possible, work with experienced people you know and trust. This includes full-time employees as well as project-based sub-contractors.
HOW DOES BUSINESS INSURANCE PROTECT CONTRACTORS?
While business insurance is not required in Ontario (unless you’re an electrician), a customized and comprehensive commercial insurance policy is the #1 way to protect general contractors and their business in the event of an unavoidable accident.
Your business insurance should cover you from liability claims, damage or theft of your equipment while even protecting you while working from the home office.
Learn more about how commercial insurance protects contractors.
When you must make a business insurance claim, make sure to avoid one of the common business insurance claim mistakes.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
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SOURCES
1 – https://www.statista.com/statistics/470887/net-claims-incurred-liability-insurance-canada/
