Western Protects Contractors with Competitive and Customized Insurance
Hamdallah (Hammy) Zeid is an eCommerce Business Insurance Leader at Western Financial Group. He’s based in Winnipeg and he’s an expert in helping businesses get the commercial insurance coverage they need at a competitive price.
Hammy answers our questions about insurance for contractors and tells us how Western is a one-stop solution for construction insurance across Canada.
How does construction insurance protect contractors and independent trade workers?
Construction insurance is designed to protect contractors and independent tradespeople from the everyday risks they face on job sites. It provides financial protection against third-party injuries, property damage, equipment theft, and even lawsuits that may arise from completed work. Whether it’s a slip-and-fall incident or damage caused during renovations, having the right coverage ensures that these professionals can continue operating without suffering major financial setbacks.
What are the advantages of coming to Western for construction insurance?
As an insurance broker, Western Financial Group offers a wide range of advantages for contractors and construction businesses:
- Industry expertise in construction insurance
- Access to multiple insurance providers for competitive rates
- Customized coverage tailored to each business
- Bundling options for cost savings
- Support from local advisors who understand provincial regulations
- Risk management guidance to help reduce claims
- Surety bonding services for contractors needing bid or performance bonds
- A blend of digital tools and personal service
This makes Western a one-stop solution for construction insurance needs across Canada.
Can construction insurance be customized?
Absolutely. Every construction business is different, and policies can be tailored based on factors like trade type, number of employees, project size, and equipment needs. Clients can adjust coverage limits, add optional protections (like pollution liability or cyber coverage), and select deductible amounts that work best for their operations.
How can construction businesses save on insurance with Western? Can anything be bundled?
Yes, bundling is one of the most effective ways to save. Western offers bundled packages that can include:
- Commercial General Liability (CGL)
- Tools & Equipment coverage
- Builder’s Risk or Course of Construction coverage
- Commercial auto insurance
- Property and office insurance
Additional savings may come from:
- Choosing higher deductibles
- Implementing safety or risk management programs
- Maintaining a claims-free history
- Taking advantage of multi-policy and loyalty discounts
What are the important liability coverages that construction businesses need?
Liability coverages are needed for financial protection, legal compliance, and peace of mind. Key liability coverages include:
- Commercial General Liability (CGL): Covers injury or damage to third parties
- Completed Operations: Protects against claims after a project is finished
- Employer’s Liability: Fills the gap not covered by workers’ compensation
- Pollution Liability: Important for contractors dealing with hazardous materials
- Non-Owned Auto Liability: Covers liability when employees use personal vehicles for work
- Errors & Omissions (Professional Liability): Essential for design-build or consulting contractors
How much CGL insurance is recommended?
Most contractors are advised to carry at least $2 million in Commercial General Liability coverage. For larger operations or those working on government or commercial projects, $5 million may be required.
The right limit depends on the type of work, contract requirements, and the potential exposure to risk.
Do contractors need Builder’s Risk or Course of Construction coverage?
Yes. Builder’s Risk is also called Course of Construction insurance and it’s essential for protecting projects while they are being built or renovated. This type of insurance covers: fire, vandalism, theft of materials, storm or weather-related damage, and collapse or accidental structural damage.
Builder’s risk protects not just the structure but also tools and materials on-site. It’s often a requirement from lenders or project owners.
When do construction businesses need surety bonds?
Surety bonds are commonly needed when bidding on government, municipal, or large commercial projects. They provide financial assurance to project owners that the contractor will fulfill the contract terms. Common types of bonds include: Bid bonds, performance bonds, and labour and material payment bonds.
Surety bonding demonstrates credibility and financial reliability in a competitive marketplace.
What kind of deductibles are usually needed for construction businesses?
Deductibles can vary depending on the size of the business and the level of risk, but common ranges include:
- $500–$2,500 for tools, equipment, or property claims
- $1,000–$5,000 for liability coverage
- Builder’s Risk policies often come with $1,000+ deductibles
Choosing a higher deductible can reduce premium costs, but it’s important to ensure the business can comfortably manage smaller out-of-pocket expenses.
