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Insurance isn’t just a safety net—it’s a legal and financial necessity for contractors in Ontario. Whether you're a general contractor, electrician, plumber, or renovation expert, the right coverage protects your business
Insurance isn’t just a safety net—it’s a legal and financial necessity for contractors in Ontario. Whether you're a general contractor, electrician, plumber, or renovation expert, the right coverage protects your business, your clients, and your reputation. In this guide, we’ll break down the types of insurance you need, especially the differences between Commercial General Liability (CGL) and Errors & Omissions (E&O) insurance.
Whether you're a solo tradesperson or managing a large team, having the right insurance is critical to your operational success and legal compliance. From site safety to professional accountability, coverage ensures you're protected at every level.
If you operate a contracting business in Ontario, you may be required—by law or by client contracts—to carry certain types of insurance:
Each of these serves a specific purpose and may be required to bid on projects or maintain licenses.
Contracting work can come with unpredictable risks—accidents, property damage, or injuries are just part of the job. CGL insurance is designed to shield your business from these liabilities so you can operate confidently and meet client expectations.
CGL insurance is the foundation of most contractor policies. It protects against third-party claims of:
For example, if a client slips and falls on your job site, or your crew accidentally damages a homeowner’s kitchen, your CGL policy steps in to cover the cost of legal fees, medical bills, and repairs.
Contractors do more than just physical labor—many also offer guidance, designs, and professional advice that can impact a project’s success. That’s where E&O insurance comes in, protecting you from costly mistakes or oversights that don't involve physical damage.
Also known as Professional Liability Insurance, E&O coverage protects against claims arising from:
If you’re a design-build contractor, project consultant, or even a tradesperson offering recommendations that influence the project outcome, you need E&O coverage.
Although they sound similar, these two insurance types cover different risks:
CGL
Physical harm or property damage
Trip-and-fall accidents, damage to third-party property
All contractors, tradespeople
E&O
Professional mistakes or negligence
Design flaws, code violations, bad advice
Designers, consultants, specialists
While not all policies are legally mandated, many are required for licensing, WSIB registration, and project eligibility:
Check with your local municipality and trade licensing office for region-specific rules.
The more complex or high-value your projects, the higher your coverage limits should be.
Tailored insurance packages are often the most cost-effective and comprehensive approach.
Working with a brokerage like Reith & Associates ensures your coverage matches your trade, risks, and project scale. We offer custom packages for:
Contractors in Ontario face a range of job site risks, legal responsibilities, and client demands—and the right insurance is key to staying protected and competitive. From CGL and E&O to builder’s risk and commercial auto, every coverage type plays a role in shielding your business from unexpected costs and claims.
Whether you're just starting out or scaling your contracting operation, a customized insurance solution will provide the peace of mind you need to focus on your craft, secure more jobs, and grow with confidence. Don’t leave your future to chance—get insured and stay ahead.
Contact us today to discuss your insurance needs and get expert guidance tailored to your trade and business goals.
Yes. CGL covers bodily injury and property damage, while E&O protects you from design or professional mistakes. Most contractors benefit from both, especially complex projects.
The cost varies based on trade, location, and project size. Many small contractors can expect to pay $500–$2,500 annually for basic CGL and E&O packages.
You may be denied permits, lose client trust, or be liable for lawsuits and damages. Lack of coverage could also disqualify you from bidding on projects.
No. WSIB is for workplace injuries only. You still need CGL and possibly E&O to cover other legal and financial risks.
Yes. Even solo contractors and consultants can (and should) carry liability coverage. Custom plans are available for independent tradespeople.
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Since 1914, Reith & Associates has served St. Thomas and the surrounding communities as a marketplace where trusted advisors craft affordable solutions that protect the people and property that matter most to you. Passionate and dedicated to our family tradition of providing an exceptional client experience.
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