What Would Be Covered Under A Carpenter Insurance Policy

Whether you are an in-house carpenter in the Ontario area that builds items in a shop or you are a remodeling carpenter that travels from job to job, you are going to need some form of insurance. That being said, when most carpenters start talking about carpenter insurance they become confused about what it covers and what it will cost. It really is easy to understand why. Most of the reason for the confusion is because carpenters insurance is not just one policy. Carpenters insurance is a generic term for a variety of policies that have been bundled together. In order to really understand what is covered you need to break down each individual policy.


insurance policies that all carpenters should have


Carpenters Liability Insurance

Carpenters liability insurance is right at the core of your protection as a carpenter. It might be one of the most basic policies out there, but it is imperative to ensuring your business’s protection. This is a type of policy that covers you and your employees in the event that you cause property damage of bodily harm. This is an extremely important policy for the traveling carpenter that is constantly working on different job sites. However, it is equally as important for the carpenter that works out of a shop. This type of policy will offer protection against slips and falls. If a customer is damaged in your place of business, this policy will offer the protection that you need.

carpenter liability insurance policy provides protection to carpenters that work in residential and commercial projects in ontario canada

It also offers protection against lawsuits. Whether the suit is scrupulous or not, this policy will cover court costs, deposition fees, and lawyer expenses. Another great thing about this policy is that it not only protects your employees, but it protects subcontractors that you have to bring in as well.


Workers Compensation Insurance

If you plan on making the most of the carpentry industry in the Ontario area, you are going to need a dedicated workforce. You simply won’t be able to handle all the work on your own. While employees are a great way to expand and branch out, it does come with some major responsibilities. You are going to be completely responsible for these employees and their health while they are on your time. This is why the province of Ontario requires any business that operates with employees to purchase workers compensation claims for their employees.

wsib for ontario carpenters

This type of coverage is a no-fault policy. What this means is that it doesn’t matter whose fault the injury is, the employee will be medically protected. The policy will cover medical expenses, wages that are lost during the injury, and death and disability claims. It should be noted that Ontario uses a modified version of the workers compensation system, which is refereed to as the incurred loss retrospective rating plan. You can read more about this plan by going to WSIB website by clicking here and here. This means that businesses have to pay a non-negotiable premium, but are given rebates based on the claims made throughout the year.


Errors And Omissions Insurance

Errors and omission insurance, also sometimes called professional liability insurance, can offer protection against the risks that you and your employees are exposed to on a daily basis. This is a type of policy was specifically designed to e&o carpenters need before workingprotect the customer in the event that your work or advice causes them financial loses. For instance, if you build a porch for a customer and didn’t support it properly and it falls, which results in damage to the home, this coverage will kick in and over the protection that you need. It will pay to have the damages repaired.

It can also protect you in the event of frivolous claims. For instance, if the customer claims that you didn’t use the right wood or color on the porch, the insurance policy will pay to rectify the situation.

Finding A Reputable And Trustworthy Insurance Broker In Ontario, Canada

While there are hundreds of insurance brokers located within the Canadian border, a few of them have a reputation of not being reputable or trustworthy. Business owners must perform extensive search inquiries, ask for recommendations and explore their options, before making a final decision. Your business, family and entire livelihood is banking on your decision, so take this task seriously. Below, you will discover several tips to help you find a trustworthy and reputable business insurance Ontario broker.

The video below eHow breaks down a few great points that are worth nothing when finding the right broker.

The Average Cost

When it comes down to it, there is really no universal price tag for business liability insurance in the country of Canada. In fact, the price can vary widely depending on numerous factors. Nevertheless, it is estimated that a sole proprietor will pay roughly $500 per year for insurance. A small consulting firm will likely be required to pay more than $3,000 each year for insurance. With that being said, it is absolutely essential to make sure that you’re handing your money over to someone reliable and reputable. You do not want to get yourself into more trouble.

The good news is that there are tons of excellent business insurance Canada providers. Tips for finding one that best suits you will be provided below.

Schedule Face-To-Face Meetings

If you think you can learn a lot from someone through phone conversations, you can learn a whole lot more through face-to-face meetings. During phone conversations, individuals can conceal their responses to questions, their deceptions and body language. This is not the case with face-to-face meetings, as the individual will be fully displayed in front of you.

meeting with a broker

Schedule in person meetings with several brokers from different insurance companies. While you have them in front of you, be sure to ask them tough questions about commercial general liability insurance that you are familiar with especially if you are operating in commercial hub province such as Ontario, Canada. Watch their reaction, when they discover you are knowledgeable on the topic. Also, have them to explain the difference between policies, while periodically chiming in and asking questions.

Avoid Overly Aggressive Agents

Your goal is to find an insurance broker that can guarantee protection from potential financial losses and follow through with these guarantees. One thing is for sure, you should never even consider doing business with an overly aggressive agent. If the agent is solely focused on a specific business insurance policy and not willing to allow you to explore your options, you should immediately move on to the next prospect.

Choosing A Well-Known Firm

When attempting to invest in any insurance for business purposes, it is often a good idea to stick with one of the well-known firms. There is a good chance that you’ve heard of Aviva Canada and Intact. These two companies are very reputable and they’ve been around for an extensive period of time. This does not always mean that one of the top firms will be right for you though. You should always do additional research to ensure that the company in question will be able to meet and satisfy each and every one of your needs and preferences.


There are tons of excellent commercial insurance providers. Nevertheless, there not all equal. You’ll find this out almost immediately. When attempting to find the right company, you will want to go above and beyond to choose a firm with tons of experience in the respective field. If the company is not thoroughly experienced, they will probably not be able to help you obtain the insurance you need at the prices that you deserve. They may overlook risks and this could wind up putting your company in a risky situation.

The Co-operators has been in business since 1997, while Aviva has been around far longer. Choosing a company with a longer track record is usually a good idea.


Before choosing a firm, it is absolutely pertinent to speak with them directly. You should always go above and beyond to make sure that the company in question is actually knowledgeable. Some of the biggest firms hire workers that are not necessarily skilled in their respective field. Before handing over your money, you’ll want to make sure that the company’s firm is actually knowledgeable in the field of business insurance.

Call the company or visit them in person. Speak with one of the staff members and see if they’re able to answer your questions. If they seem lost or out of depth, you should consider looking for another company. There are tons of excellent business insurance providers out there, so you should not feel obligated to settle!


If you do not follow the tips above, you will have a 50/50 chance of finding a reputable, trustworthy broker. If you do follow the tips, you will have a 90 percent chance of finding a reputable broker. The option is yours to make, so take your time, do research and think out your options.

Do You Own A Small Business? Then Still Get Business Insurance.

It really does not matter even if you have a small business, you should buy insurance for a small businessbusiness insurance policy to protect your investment, production, inventory as well as structure and many other things. Now you need to ask a few very important questions to yourself before you practically buy any business insurance policy. These questions not only benefit you by making you more proactive, but also help you brainstorm and list more aspects of your business that can potentially benefit from being insured.

You have to ask yourself these things:

-Which business insurance policy is the right one for you?
-How much should be the premium of the policy you want to buy?
-What are the benefits offered by the policy you are looking forward to?
-Is it worth buying the policy you have chosen?
-Have you chosen the right company or no?
-Are you paying more for the policy offered at another company at cheaper rate?

So where do you start and with what limits of coverage?

Many times, we have seen that numerous small businesses operate without any insurance in place or they are most often under insured. In Canada, most polices start with a combination of $1,000,000 per claim and $2,000,000 aggregate. These are standard starting points and almost every insurer has a program that provides this package. Keep in mind that if your business is very high risk or in an industry that the insurance company has faced loses in, then they may not be able to offer you the cheapest rates or even deny providing you a quote.insurance brokers in canada

If this situation does occur and you run into a broker who contacted an insurer that denies you, the best option is to speak to a new broker or compare rates from multiple different insurance providers. What this does is eliminate the possibility of you being restricted to one broker and potentially only receiving high premiums. There are many markets (companies) in the insurance industry that have exclusive deals with specific brokerages. Being well researched and then finding those providers will often guarantee that you will land a solid business insurance policy.

Finding such brokers can be pretty hard as if they do not have a presence online, there would virtually be no way of finding them. In this case, you would want to call multiple insurance brokerages to fish for potential company names that may be able to help you. Once you have a insurance companies written down, you should call them directly and ask weather they can help you or request them to connect you to a brokerage that can!

Regardless, what you need is the right kind of information regarding the cheap and affordable business insurance and the best way to start is to by getting in touch with an insurance company like Chubb.

So, you just need to concentrate on the right kind of information and ask for expert opinion on what should be the good policy for your business. You may not want to buy something that does not cover you properly or may not offer you any claim, in case you suffer a particular problem. Such situations can be common, if you are ignorant to the coverage and related terms. Many times, we do not read the policy contract and therefore, we do not know which situations or perils are covered.

For best idea about the right insurance for businesses, use official websites of various companies to compare and check which policies would fit your needs and requirements. Once you have an idea about what you need, then you can compare the rates offered by different companies for the same types of policy.

It would definitely not be wise to pay more for any business insurance that is available at some other company at very less rate. So, compare quotes of different home insurance policies and then companies. This will save a lot of your money for your precious business.

Understanding The Many Requirements For Getting A Surety Bond

Why you need it

As a business owner or construction contractor in Canada, you will quickly discover that it is essential to jump over many hurdles, before you can actually begin serving the public and making money. While these hurdles may feel unnecessary, they’re why you need a surety bond agreementrequired by Canadian law and breaking these laws will turn you into a failure, before you even get started. One of the most pertinent steps to take is to obtain the necessary surety bonds. Before you can do that, you will need to meet a few basic requirements. Below, you will learn about these requirements and why they’ve been set in place.

Business License

In many cases, the surety company will not be willing to provide the business with the surety bond, until they’ve been licensed. The licensing requirements tend to deviate from one Canadian province to another. Coincidentally, your business will first need to obtain a license bond before you’ll be eligible for the license. Obtaining the license will be a first step in the right direction. Even if the surety company doesn’t verify your company’s license, it is still pertinent to get it.

This is the case, because you cannot run a business in Canada without a business license.

Decide What Type Of Bond Is Needed

Next, you will need to take the time to figure out precisely what type of bond is needed. In many cases, you will be required to get one bond and then another one shortly thereafter. This is especially true for construction contractors. If you’re interested in bidding on a new project, you will need to get the bid bond. If you’re trying to make a guarantee to the project owner, you will need a performance bond and probably a payment bond as well. Even if you opt for the bid bond, you should remember that the performance and payment bonds will be needed next, if you’re selected for the project.

Take the time to determine what bond is needed and the amount that is required. This can be a little tricky for new contractors. Speak with our surety bond experts. We’ll be able to help you obtain the exact bonds and bond amount that you require.

Financial Analysis

Every surety has established requirements and standards, pertaining to the underwriting process. If you have obtained a surety bond from one underwriter and want to switch to another surety in your area, you should not expect the processes to play out in the same manner. The prequalification is a rigorous and time-consuming process, requiring the applicant to jump through a lot of hoops. Now bond underwriting financial analysisthis does not necessarily say that the surety company is dragging out the process, but only that they are doing their job thoroughly and accurately.

With this said, most surety companies will request the applicant to provide them with the past three years fiscal-year-end statements. This is a requirement that many applicants have difficulty meeting, which is why we only request the past years’ fiscal year-end statement. This will lessen the burden for both our clients and underwriters.

Why You Need An In Depth Business Plan

When you are applying for a surety bond, you will notice the different types of information requested by the insurer. One of the things they are going to require you to present is a solid business plan. This business plan just basically outlines the size and type of project you are currently working on and/or new projects you want to take on in the future. This plan will also include the provinces, in which your company operates, profits the company makes, and the growth of the company. Why is all of this necessary? When this information is complied together, it will allow the surety company to assess if your company is financially capable of handling the job the new construction project.

There are so many construction companies across Canada that try to undertake jobs that are too large for them to tackle, but a surety bond prevents the project owner from having to face this type of reality. As you can see, this is a lot of detailed information and it is just the beginning. The surety company will require a lot more information than this and it really can speed things along, if you obtain the necessary paperwork in advance.

Exploring Your Line Of Credit

Another important aspect of your company that the surety will look into is your line of credit. When you hear “line of credit”, the term basically refers to the financial institutions you have conducted business with in the past. The surety will look at how many loans you take out, the size of the loan, and the time period within which you pay them back. This once again will allow the surety company to determine if you are financially capable of taking on the new project that you are planning to bid on.

company's credit standing

If your line of credit isn’t very good, it can cause the price of your bond to greatly increase and in some cases, it can prevent you from getting approved for a surety bond. With this in mind, it is truly in your best interest to keep your credit in good shape. This will ensure you pay less for surety bonds, while also making them easier to obtain.

Indemnity Agreement

Finally, you should remember that the majority of surety companies will require the principal to sign an indemnity agreement before the bond will be issued. This agreement helps to determine where the financial responsibility is placed. This will also provide the surety company with reassurance that they’ll be able to recover their losses should the Principal be hit with a surety bond claim. If the client files a claim and the surety company is forced to pay out, they’ll come to you for compensation. The indemnity agreement confirms that you are willing to repay the amount the surety company was forced to disperse to the project owner.

Once the agreement is signed, the surety provider should issue the surety bond to your company. Normally, the bond will arrive through the mail within a few days.

Who Can qualify for a Surety Bond?

The basic Surety bonding requirements

Surety Bonding is a type of insurance protection that project owners require from contractors. This allows the project owners to gain a level of financial security in the event an unforeseeable situation, damages, or losses occur. Surety Bonding is mostly used for construction companies, but other businesses require these bonds as well. Saying that, getting bonded is not always easy, you as a business owner must meet specific requirements and standards. Today I will talk about Credit score requirements to get surety bonds.


Credit score is dependent on factors such as, whether you have paid yours bills on time, or if you have borrowed any money from credit cards and have not paid them off. Having a bad credit could affect your financials. One of the common things that happen is that you will get denied for credit. Credit is required for mortgage rates and also getting a better insurance and loans from banks. Surety Companies also check your credit score to provide an appropriate surety bond rate. If it’s a poor credit score, it will indicate that you have not been financially stable and that you may be facing financial problems. Poor credit shows the surety company that there could be risk of loss in the future. The Surety company expects a good credit score around 700 and a poor credit score to be around 400. Having poor credit could mean that an individual has to pay more for the bonds than a person with a good credit.

Excellent Credit Score

How to Improve your credit score?

  1. Pay your bills on time
  2. Pay off any debts you have
  3. If you don’t have the financial stability, avoid using credit cards because in the end you could be paying more in interest.

A bad credit does not mean it is the end of the world, if you follow the steps above, your credit will improve and in the future you could have better bonding or mortgage rates.

Company’s Financial:

Companies financial is another factor affecting the bonding prices because if you don’t have enough money to purchase the bonds, then you must finance in order to pay for the bonds. People with low credit score have to pay more and because of this reason they might have to resort to low tier financing. Your company’s financials are very important because the surety company doesn’t want to give bonds to an individual with bad financials in the fear that they might not be able to pay for the bonds or complete the construction job and also knowing that if the company is struggling or not.

construction company financial statement

Surety Bonds are obtained through Surety companies or through direct agents at insurance companies such as Marsh Canada. The brokers and agents must be knowledgeable about the surety and the construction industries. Surety Bond producers work mainly in agencies but are also found working for insurance companies. The surety Bond producers usually maintain a respectable relationship with several surety companies. Having a relationship with surety brokers helps contractor to find a suitable surety bond insurance company which in exchange is best for them.  A good surety company and the surety producer will help you maintain and increase the surety capacity while lowering your premiums.

Bonding Capacity:

Bonding Capacity is important for contractors as their capacity will determine the projects they could pursue. Bonding capacity is usually based on the amount of cash, assets, experience and personal records of a professional contractor. Bonds are issued by the amount of job per basis and contractor is only allowed contract or a bond up to their surety facility limit. The aggregate is the maximum a contractor can have at any one year. The aggregate consists of all the contracts included bonded and unbounded which indicates the surety company how much work the contractor could take.