Question 1

Do contractors need CGL insurance in Ontario?

Accepted Answer

Yes. General contractors (GCs) almost universally require every subtrade on a job site to carry active CGL insurance — usually a minimum of $2 million — before allowing them to start work. Without it, you won't be permitted on most commercial or residential construction sites, and many building permits and municipal contracts require proof of coverage as well.

Question 2

What CGL coverage limit do contractors need?

Accepted Answer

$2 million is the standard minimum requested by general contractors and property managers in Ontario. Higher-risk trades — roofing, excavation, demolition, structural work — are often asked for $5 million, especially on commercial projects or when working near occupied buildings.

Question 3

Does CGL insurance cover my tools and equipment?

Accepted Answer

No. CGL only covers third-party injury and property damage claims — it does not cover your own tools, equipment, or vehicles if they're stolen or damaged. Contractors typically need a separate Contractor's Equipment (tools) floater alongside their CGL policy for that protection.

Question 4

Does CGL cover faulty workmanship?

Accepted Answer

CGL doesn't cover the cost of redoing your own bad work, but it does cover third-party property damage that results from it under Completed Operations coverage — for example, if a poorly installed pipe fitting leaks and damages a client's flooring weeks after the job is finished, the resulting water damage claim is typically covered.

Question 5

What is an 'additional insured' on a contractor's CGL policy?

Accepted Answer

It's an endorsement that adds another party — usually the general contractor or property owner — to your CGL policy so they're also protected if a claim arises from your work on their project. GCs frequently require subtrades to add them as an additional insured before granting site access.

Question 6

How fast can a contractor get a Certificate of Insurance?

Accepted Answer

Once your CGL policy is active, a Certificate of Insurance (COI) can usually be issued the same day. If you have a job-site deadline, tell your broker upfront so the COI — and any required additional-insured endorsement — is ready before you're scheduled to start.

Trade	Typical Required Limit	Why
Handyman / small renovations	$1M – $2M	Lower-risk, interior work
Electrician / plumber	$2M	Standard GC requirement
General contractor	$2M – $5M	Depends on project size
Roofer / excavation / demolition	$5M	High-risk trade, often required
HVAC / landscaping	$2M	Standard GC requirement

CGL Insurance for Ontario Contractors & Trades

Why Ontario Contractors Need CGL Insurance

Typical Coverage Limits by Trade

What CGL Does NOT Cover for Contractors

Your own tools & equipment

Employee injuries

Your own vehicle

Cost to redo your own faulty work

Certificate of Insurance & Additional Insured

Contractor CGL Insurance — Frequently Asked Questions

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