Tools, Trucks, And Teams: What Your Contractor Insurance Should Cover

General and building contractors, drywallers, painters, plumbers, landscapers, carpenters, builders, and subcontractors—do you know what your contractor insurance coverage includes? Do you have contractor liability insurance in place? Do you even have contractors’ insurance? Accumulating some tools over the years may not seem like that much money, but you’d be surprised what that whole bag is worth when it’s someone else selling it for you. So, set your business up for success and protect yourself and the stuff you need to get the job done.

LET’S START WITH THE BASICS

Here are the coverages you’ll find in contractor insurance bundles throughout Saskatchewan, Alberta, and Manitoba.

Commercial General Liability
Commercial General Liability (CGL) covers bodily injury, property damage, and in some cases, product liability. Think of it this way: You install something in a client’s home, and it later malfunctions, causing damage or, worse, harm to your client. Commercial General Liability can help cover legal fees, too, or medical expenses if you are found liable. When owning or operating a commercial building that welcomes customers, it can protect you from bodily injury, let’s say if someone slips and falls on your property. These are the things that may feel like a one-in-a-million chance, but at the same time, not worth the gamble.

Contractors’ Tools and Equipment Floater
Contractors’ Tools and Equipment Floater coverage covers you in the event of a loss. A loss can be stolen tools or contractors’ equipment. According to the National Equipment Register, each year in Canada, construction site thefts reach up to $1 billion in losses. It’s the hard truth that not everything can be equipped with an AirTag. The best-case scenario is to ensure your tool insurance for contractors is included in your policy. Not to mention, it even protects your assets away from your premises. Whether you’re on the jobsite or at home, your commercial tools have someone watching out for them.

WHAT ABOUT THE MORE ADVANCED COVERAGES?

So, you’ve nailed the basic stuff; what about the more advanced coverages you can get in your commercial contractors’ insurance package? On top of getting higher limits, maybe even more deductible options, here are the things that come in Deluxe Contractors’ Packages.

Business Contents
Your office, workshop, or even that little corner of the garage where you keep files, computers, and other essentials—it all counts as business contents. This coverage protects the physical stuff inside your commercial property. Think desks, laptops, printers, signage, and even the couch in the waiting area. If fire, theft, or certain types of damage hit your office, Business Contents coverage helps replace the things you rely on day-to-day. You might not swing a hammer with your computer, but you probably need it to send invoices, order materials, or plan out jobs. Protecting these behind-the-scenes items is just as important as protecting your tools.

Installation Floater
An Installation Floater covers the materials, supplies, and equipment you’ve purchased for a job but haven’t yet installed. For example, if you’re a flooring contractor and you’ve bought a whole shipment of hardwood that’s sitting on-site waiting to go in, this coverage protects it if it gets damaged or stolen before it’s nailed down. Without it, you’re on the hook to replace those materials yourself. It’s a must for tradespeople that work with high-value materials like cabinetry, plumbing fixtures, or custom windows. Basically, if it’s not fixed in place yet, that’s what installation floater coverage is for.

Business Interruption Coverage
What happens if a fire, flood, or another covered event forces you to shut down operations for a while? You’re still paying bills, still trying to keep your team together, but… there’s no money coming in. That’s where Business Interruption coverage steps in. It helps replace lost income to help you cover ongoing expenses like rent, utilities, and payroll until you can get back to work. It’s like a financial safety net that keeps your business from going under while you rebuild or relocate. Without it, even a short-term shutdown could have long-term consequences for small businesses.

Contractors’ Equipment
This one takes things a step up from the Tools Floater coverage. While your tool floater covers the smaller gear you haul around every day, Contractors’ Equipment coverage is designed for the big-ticket items, like skid steers, bulldozers, or excavators. Whether your equipment is damaged, stolen, or even vandalized, this coverage helps you recover the cost, so your projects don’t grind to a halt. Considering how much heavy machinery costs (and how much you rely on it), this coverage is essential for businesses doing excavation, landscaping, or carpentry.

And don’t forget, if you’re relying on trucks to get your team and tools from site to site, contractor pickup truck insurance or work truck insurance in Saskatchewan and Manitoba can make sure the commercial vehicles that keep your business moving are protected too.

OPTIONAL COVERAGES

Maybe your business wants to stay protected against online scammers, or maybe if something breaks down in the middle of busy season. Here are the optional coverages you could add to your contractors’ insurance policy.

• Glass Coverage: Reduce your deductible for glass breakage or schedule coverage for accidental glass breakage.
• CyberOne: Our Cyber Insurance; protecting you from phishing, cyber-attacks, and malware. Cyber security is for everyone, so don’t overlook adding this coverage to your insurance policy.
• Equipment Breakdown: Earthmoving, material handling, site preparation, and more—it really slows down the whole project when equipment breaks down. If you depend on machinery to keep your cash flowing, this optional coverage might be in your best interest to add to your commercial insurance policy.
• Sewer Backup: Sewer Backup coverage takes care of losses stemming from the backup of toilets, drains, sumps, and other outflow fixtures.
• Data Compromise: Lost important, personal data due to a cybercrime? It can happen to anyone. This coverage can help you quantify the data breach and assist with next steps of potential lost data to your customers.

Commercial insurance is one of our specialties at Sandbox! And at the end of the day, every contractor’s toolbox looks a little different, and so should your insurance. Our Contractors’ Package Insurance is designed to cover the essentials (and then some) so you can keep building without worrying about what-ifs. 

Need something a little more out-of-the-box? That’s where our Customized Commercial Package comes in. It’s tailored protection built around the way you do business, whether you’re a solo tradesperson or leading a crew. Unique businesses call for unique policies; so chat with your insurance broker in Saskatchewan, Alberta, or Manitoba to get a custom quote.

Please note that the information in this article may not accurately reflect your insurance policy from Sandbox Mutual Insurance or another insurance company. Please refer to your policy or talk to your broker about your specific coverages.