How Much Contractors Insurance Coverage Should A Handyman Have?

Handymen operating in the Ontario area really have it made right now, as they don’t have any problem whatsoever finding work. That being said, there are a lot of responsibilities that come along with the job. The risks of being a handyman are truly unique. One day you might find yourself dealing with an electrical shortage and the next you might find yourself dealing with a leaky pipe. Whatever the situation is, the uniqueness of your job opens you up to an insurmountable number of risks. This is why it is more important than ever to make sure that you are protected with the right policies and amount of coverage.

handyman insurance coverage that protects contractors in the event liability rises


Handyman General Liability Insurance

Whether you plan on opening a large operation or just a one-man shop, you are going to need to acquire general liability insurance. Not only will most contracts require this policy, but also it can offer the protection against the risks that you are exposed to on a daily basis. General liability insurance will protect you in the event that you cause property damage to a customer’s home or business. It will also protect you in the event that you cause bodily harm to a customer. What exactly does this mean?

Well, imagine if you are working in a customer’s home and you are sanding a wall. If the customer walks in and inhales drywall dust and claims that you caused him or her to develop a lung infection, you are going to be liable for the medical expenses. This might seem like an unlikely situation, but it isn’t.

This policy will also protect you in the event that you cause property damage. For instance, it is possible that you might fall through the ceiling, while you are repairing a leak or fixing wiring issues in the attic. Maybe you damage the customer’s car when you are working on the roof. Whatever the issue is, handyman’s general liability insurance will offer the coverage you need. ACHP-Canada recommends acquiring at least a $2,000,000 policy to ensure that you are protected at all times. 


General Liability Coverage Needs Can Vary

You just learned that a $2,000,000 coverage policy should be sufficient to cover the average handyman. However, there are other factors that can determine the amount of coverage that you need. If you plan on working in commercial and industrial locations, you might want to invest in a higher policy, because you will be dealing with much more expensive property. In fact, in order to even bid on some commercial contracts in Canada, you will be required to obtain a $3 or $5 million-dollar policy.

The number of employees that you have might also make you want to consider the amount of coverage that you acquire. If you have ten or twenty employees out there everyday doing jobs, it really raises the risks for an incident.

opting for 2 million in handyman liability coverage


Protecting You Against Lawsuits

As mentioned above, general liability insurance could protect you in the event that you cause property damage or bodily harm to a customer. However, there is another unique way in which it can protect you and perhaps this is the most important protection of the policy. There are certain situations when a customer might feel like repairing the damages or paying for the medical expenses isn’t enough. In these types of situations, the customer has the legal right to take you to court.

Whether you are at fault or not, you are going to spend hours and tons of money battling the lawsuit. If you lose you might end of in financial ruin. General liability situation can offer the protection that you need in these situations. It will cover any fees, court fines, and lawyer expenses that you incur throughout the entirety of the trial. There are some providers that will even specialize these policies to cover some of the settlement in the event that you lose the trail.


Getting Quotes Is Extremely Important

Any handyman will quickly discover that there are a number of insurance providers in the insurance quote for residential handymen in ontario canadaOntario area. This is a good thing, because it gives you a wide competing market to search through and find a provider that can meet all your specific needs. That being said, not all providers Ontario are created equal. Some might offer different polices, while others will offer different prices. This is why it is important to get as many quotes as possible before choosing one. This is will give you a chance to see what they have to offer and how much they are charging.

Quotes are free and getting them from any reputable insurance provider is easy. We recommend going to ProfessionalsCoverage to apply for handyman insurance as they are licensed to operate Ontario wide. All you have to do is visit their official website and enter in your businesses’ information. You can also get quotes over the phone or in person, if you prefer these methods to the online option.

How To Get A Reliable Business Insurance Quote

business insurance protection

Most Canadian insurance brokers have a website that offers online insurance quotes. These quotes are provided to consumers and business owners to add convenience to their business lives. While there are many benefits of obtaining an insurance quote online, there are also some downsides. One thing is for sure, everyone with a computer and Internet connection can access the free online quote form. Below, you will discover more information about obtaining an online commercial general liability insurance quote. If you want to learn about how this insurance works, visit BusinessDictionary and get educated!

Is It Really A Timely Process?

One question that many business owners ponder is the online quote process as expedient as the insurer promises. Well, the answer is not as simple as “yes” or “no,” because obtaining a business liability insurance quote is not a timely process. In fact, there are many steps that must be taken, before you can even begin completing the quote form. You must gather all of your personal information, financial documents and credit record to obtain the most accurate quote long it takes to get quotes

Now, if you just want to obtain an overage quote, you can go ahead and fill out the form, answering the questions to the best of your knowledge. In most cases, the quote will not be returned for up to 24 hours or before you speak directly with an agent.

Many people are under the impression that the quote will be provided within seconds, but this is a major misconception. Of course, you may be provided with an average quote that will not justify your needs. To get an accurate quote, you will need to speak with an agent or visit your local insurance broker office. Never rush this process! Take your time and make sure everything is perfect.

Provide Accurate Information

When it comes down to it, you should always do your best to provide the most accurate information possible. It is estimated that approximately 25 percent of applications will contain errors. The numbers might be even higher today. If the numbers are wrong, there is a good chance that you’re going to receive a wrong quote. Therefore, you should always go above and beyond to make sure that your information is truthful and accurate. If you want to get the cheapest business insurance, contact an Ontario broker like LiabilityCover and have your information ready ahead of time.

This will help to ensure that the application is submitted with truthful and accurate information.

Get Multiple Quotes

When attempting to acquire commercial general liability insurance, you should always go above and beyond to shop around. The good news is that there are tons of good insurance providers in Canada and the mass majority will serve the province of Ontario. Intact is one of the most popular. Bullfrog, The Co-operators, and Aviva are other good options. Each company is unique and the experts agree that consumers that shop around for insurance will be more than 80% more likely to get a cheaper premium.

It can be a little more time consuming to request numerous quotes, but you should do so anyway. More quotes will increase the likelihood that you’ll get an accurate price and a lower one too.

Do It In Person

There is no doubt that requesting a quote online is the easiest option. However, you should realize that you’ll be far more comfortable at home. So, you’ll be much more likely to make mistakes when submitting an application online. If you want to avoid problems, you should consider submitting the application in person. Visit the insurance company’s office directly and speak with a representative. They’ll be able to walk you through the entire process. And of course, they’ll double check your work to ensure that everything is accurate and correct.

If you want to ensure that you get the right price for your commercial insurance, you owe it to yourself to visit the office directly and submit the request in person.

Double check Your Work

Before submitting your request, it is absolutely pertinent to go ahead and double check your re-checkingwork. Even if you’re taken time and have worked meticulously, there is a good chance that you’ve made a typo somewhere along the way. This is why you should be willing to double check your work. Before hitting the submit button, you should scroll back up and read everything. Fix any errors that you find, before clicking on the submit button.


Why All Canadian Businesses Need Errors And Omissions Insurance

The reason is cheaper than a claim, believe us.

Do you operate a business within the province of Ontario? If so, you should understand that you take a risk each and every time you serve a client. There is a possibility that you might make a mistake. Alternatively, the client may determine that you’ve failed to live up to errors and omissions insurance coveragetheir standards. This can set off a firestorm and lead directly to the courtroom. The legal costs associated with a lawsuit could result in your company filing for bankruptcy and eventually dissolving. This is why you need to read the information below and learn about Errors & Omissions insurance Ontario.

The Basics

First and foremost, it is wise to gain a better understanding of E&O insurance. This insurance is suitable for each and every professional, who wishes to offer their skills and services to Canadian citizens. It protects the client and the business. This is the case, because E&O insurance is designed to protect the business with a financial shield in the case of a lawsuit being brought by their previous client. It also protects the client, by allowing them to know that the company can indeed pay, if they’ve made a severe mistake.

E&O insurance protects the company in the event of error and negligence. It can also be helpful should the client claim that your company failed to perform up to standard.

An Unpredictable World

When it comes down to it, all business owners in Ontario need to understand that the world is totally unpredictable. While you may have a specific schedule for the entire week, you never really know what is going to happen from minute to minute. While things may be going excellent one second, the script can flip quickly and your world could be turned upside down. Remember that not all lawsuits are legitimate. The good news is that E&O insurance will protect your business, even if the lawsuit is frivolous.

errors coverage policy

Therefore, you should always prepare for the worst-case scenario and obtaining E&O insurance is one of the best ways to do just that!

Remain In Business

As mentioned above, a prolonged lawsuit could result in substantial legal costs. In fact, these costs could eventually cause your business to go bankrupt. This is the worst thing that could happen and you will want to make sure that it doesn’t! One of the best ways to ensure your company remains in business is by obtaining errors and omissions insurance. This coverage will help you pay for the legal costs, while simultaneously helping to pay any settlement to the client.

With errors and omissions insurance in place, your company will be able to remain afloat, even if you lose the courtroom battle. Therefore, you should make sure that you obtain a sufficient amount of coverage. Doing so will help to protect your client, your business, and your employees.

Fighting Frivolous Claims

Unfortunately, the number of frivolous lawsuits in Canada has increased immensely over the past few years. And, it is important to realize that a lawsuit and the costs associated with a trial could easily empty your entire bank account. You’ll be required to hire a team of defense lawyers and the lawsuit could drag out for many years. When all is said and done, your company could be sunk, due to the frivolous claim. It is no secret that you want to shut down those claims, without hurting your business.

This is why all businesses need E&O insurance. You never know when you’re going to run into a mischievous client. Make sure your company is protected, before taking the risk. Your first client could be up to something nefarious and you don’t want this individual to also be your last client!

errors & omissions claim reasons

Sometimes Required

Within the province of Ontario, there are many businesses that will be required to obtain E&O insurance. Offering your services to Canadians without coverage could land you in hot water. Of course, this isn’t always a requirement. It depends on the province and your line of work. Therefore, you should familiarize yourself with your local laws and determine whether or not the insurance is a requirement for you. Obviously, if the insurance is required, you’ll need to obtain it immediately. Otherwise, you can still find plenty of good reasons for doing so!

An Investment In Your Future

Many Canadian business owners will scoff at the idea of paying such an expense, if it is not absolutely necessary. The truth of the matter is that E&O insurance is a good way to invest in the future of your company. If you work without E&O coverage, you are taking a risk each time you make a decision for your client. And of course, the lack of coverage will remain in your mind throughout the entire process. This could make you very anxious and could lead to a major mistake. With the coverage, you will be able to rest assured knowing your business will not be shut down, due to a minor mistake.

Therefore, the presence of the errors and omissions insurance keep your company’s future bright, while also allowing you to open the door to more clients and additional revenue!

Think About Your Family

When it comes down to it, you should remember that your business doesn’t just support you. It also supports your family and the family of each and every one of your employees! Therefore, you should do the right thing and get the insurance. Doing so will prove that you care about your loved ones and your employees. And of course, it will protect them in the event of a lawsuit being filed against your company.

The Importance Of Contractor General Liability Insurance

If you’re a contractor, then you need to get yourself contractor general liability insurance. It can protect you and your business. Continue to read on to learn how insurance can protect you, as well as other useful information.

insurance for contractors in canada

1. How Liability Insurance Can Protect Your BusinessLiability insurance for contractors protects your company’s assets, which is what you want in the event a third party alleges that your company caused bodily harm or damage to their property. Not only that, but insurance can protect your business in the event you have to go to court and judgement passes because it may cover court costs, as well as settlements of up to a certain amount. Furthermore, it provides your employees with security because they too will be protected from uncertainty.

2. Key Details About Insurance Plans – Different insurance policies will cover different things, but generally speaking you can get insurance that includes bodily injury claims. As a contractor who works on various job sites, you know that accidents can and do happen, and this is especially true when untrained professionals are on the job site. Liability insurance can protect your business in the event an accident happens and a lawsuit is brought forward.

Property damage claims can cost a contractor their entire business, and this is another reason to get liability insurance. If a policy covers property damage, then your business will be protected against lawsuits that allege you caused damage to someone’s property. Just make sure you double-check your policy before purchasing it because you want to find out what exactly is covered and what isn’t.

Personal injury and advertising injury claims can sometimes be brought against a contractor, and this is why many policies includes coverage for it. The last thing you want is to be sued for copyright infringement by another company or brand. You might be surprised at how many contractors have been sued for it and if you’re policy covers advertising injury or personal injury, then you will be thankful, especially in the event you are sued.

3. Buying Insurance – Don’t just buy any old insurance policy. Different companies offer different insurance policies, and you want to compare as many as you can and find out what each policy covers and how much you can expect to pay for it. Remember, the cheapest policy may not be the best one, and the priciest one may not be the best one too. The good news is getting quotes from a number of companies within a short period of time is easy to do, as you can do it all online.

contractor liability insurance canadaNow you know the importance of contractor general liability insurance and how to find and choose a good policy. It doesn’t matter what industry you work in, if you’re a contractor, then you should get liability insurance as soon as possible. All you have to do now is start shopping around for liability insurance and compare a few policies and then choose the one you think will best meet your needs.

The Immense Importance Of Avoiding Surety Bond Claims

Avoiding Bond Claims

As a company, which services the residents of Canada, you have a daunting task ahead. You have plenty of different responsibilities to juggle and these can become overwhelming from time to time. Another thing that needs to be noted is the need for surety bonds. The bond helps to provide the client with protection, while placing additional stress on your shoulders. In order to keep your business afloat, protect your integrity and solidify your future, it is pertinent to avoid bond claims at ever step and turn. Below, you’ll learn about the importance of avoiding claims.

Massive Losses

Most business owners will immediately focus on the repercussions of losing a claim. This is no coincidence. Losing a claim will undoubtedly sting and will take a large sum of money directly from your company’s budget. When the bond claim is made, the surety company will analyze the situation and make a ruling. If they rule against you, they’ll reimburse the obligee. The amount of the reimbursement will depend, but could be as much as the original bond amount.

Once the surety has repaid the client, they’ll then turn their attention to your company. This is the case, because you signed the indemnity agreement, in order to get the bond. Typically, this contract guarantees that you’ll pay the surety back for any claims that they’re forced to pay out. Since the amount lost due to a claim could be astronomic, it will put smaller businesses into jeopardy.

Could Hinder Your Future

Another thing to take into consideration is your company’s future. For many businesses, it will be absolutely pertinent to be able to maintain the validity of the surety bond. If you lose your bond, you’ll need to proceed through the entire process again and this could prevent you from earning money in the short term. Also, if the bond claims continue to pile up, there will likely come a time, when you’ll be unable to pay the reimbursement amount. If this happens, the surety will undoubtedly cancel your bond and refuse to provide you with a refund.

Of course, the most devastating fact of all is that this type of behaviour could stick with you. Other surety companies will know about your failures and they’ll be very cautious about issuing you bonds. If you’re not careful, your ability to get bonded could be eliminated entirely.

Reputation Is Pertinent

As you likely already know, reputation is incredibly important for businesses. If your business obtains a bad reputation, you’ll find it much more difficult to attract customers and business partners. Unfortunately, bond claims can have a major impact on your reputation. If you consistently rack up claims and fail to offer reimbursement, you’ll quickly give off the impression that you’re unreliable and unprofessional.

Remember that word of mouth is vital. If that word is negative, your business is going to be hurt severely. To prevent this from happening, you should do your best to avoid claims.

Tips For Prevention

Now that you’ve learned about the enormous importance of avoiding claims, you should learn how to prevent them. The truth of the matter is that the majority of Canadian bond claims stem from a lack of communication between the service provider and the client. You won’t have much difficulty fixing this problem. Remember to remain in close contact with the client at all times. You should also provide them with work on hand reports throughout. This will give them encouragement that the work is progressing and will be finished on time.


At the end of the day, claims could wreck your business. Not only will it result in immense monetary loss, but claims will also hurt your reputation. So, if you truly wish to succeed, you need to protect your business by avoiding claims!

Surety Bonding Limits In Canada

Do Surety Bonds Have Limits?

You already know that bonds expire after a certain amount of time has passed and they can be renewed. However, you may not know that bonds can have limits. This basically means that your bonds can be limited to a specific monetary value. Just to recap a little bit, surety bonds are preapproved for two maximum values. First, you have the single limit, which will be the largest amount that you can be bonded for a single project.

surety capasity

Next, you have the aggregate limit. This is the total amount of bonded work that you can have at one time. For instance, you can have multiple projects going at one time, but the total bonded cost of all projects cannot exceed your aggregate limit.

How To Increase Your Bond Limit

When a surety bond company is considering underwriting your bond, they are going to look at your financial stability. Your financial statements and work history will show the surety company, if you are capable of handling larger projects that require larger bonds. Your statements must show cash flow, equity, profit, and working capital.

When you are applying for a bond of this manner, it would be in your best interest to work with a CPA (Certified Public Accountant). He or she knows this industry and will be able to help you prepare your financial documents.

Choosing The Correct Accounting Method

There are several different accounting methods that you have to choose from. The cash method is probably the simplest of all, but it limits your company to only bidding on smaller projects.

The accrual method will allow you to greatly increase your bond limit, as long as your company is in good financial standing. When you choose a good CPA to work with, this is probably something that you will not have to worry about, because he or she will be able to guide your company in the right direction to success.

Construction Crane

Do Not Limit Yourself

It is a known fact that all surety companies have bond limits. Some companies will offer higher limits than others. You never want to miss out on the chance to take on a larger project to grow your business. This is why it is imperative that you check out several different surety companies, before you decide on which one to hire.


Everyone wants to be successful and as you can see, the key to a successful business are surety bonds. However, surety bonds can be tricky and you want to make sure that you fully understand them and their limits. If you want to limit your mistakes and losses when it comes to bonding, it is recommended to learn the definition of Surety Bonds, check out Investopedia, they explain it in the most simplest terms.

How does cancellation work when it comes to Surety bonds?

Can A Surety Company Cancel A Surety Bond Posted By A Government Contractor?

As you well know by now, a surety bond does expire after a certain amount of time. It is up to the principal to make sure that the bond does not expire, before the construction project is complete. To prevent a bond from expiring, all you have to do is send in the annual premium amount to the surety company, before the bond’s expiration date. If you are sending the payment by snail mail, be sure that you submit the payment at least two weeks in advance, so that it arrives early.

However, what if the principal wants to cancel a surety bond? It is possible that a bond can be canceled, but there are a few things that you need to know about canceling a bond.

Cancelling A Surety Bond

According to the Canadian Revenue Agency, an underwriter can cancel a surety bond that Cancelling a Surety Bondwas posted by a government contractor. However, in order for a surety company to cancel a government contractor’s bond, they will have to submit a notification in writing to the appropriate government entity. The Canadian Revenue Agency will investigate the request to see if a surety bond is no longer required and no monies are owed, by the principal.

The letter of cancellation must be sent by registered mail to the appropriate regional excise duty office and must be received 60 days, prior to the cancellation date. After the audit is conducted, a formal decision will be made, based on the evidence collected, during the investigation.

Unduly Cancellation

If the surety company fails to comply by these standards, their business license may be jeopardy. If the government contractor is still in operation and the bond was cancelled without written permission from the CRA, it will need to be replaced immediately. If the surety refuses to comply, their license will be suspended or revoked

Contractors making a deal


Underwriters are required to be compliance with their business licensed. Acting unethically will definitely put their business license at jeopardy and if you need more information about this topic, feel free to visit Canadian Revenue Agency website or contact an agent by phone or email.