General Liability (GL) insurance is the core coverage most skilled trades contractors carry. It protects you against claims from third parties — customers, property owners, or passersby — arising from your work.
What General Liability Insurance Covers
Bodily injury — e.g., a customer trips over your equipment on a job site
Property damage — e.g., an electrician's mistake causes a fire that damages a client's home
Completed operations — damage or injury that shows up after the job is finished (e.g., a poorly installed water heater floods a basement months later)
Advertising injury — things like copyright infringement or defamation claims tied to your marketing
Most GL policies for small contractors in Canada carry limits somewhere in the $1,000,000–$2,000,000 per-occurrence range, though this varies by trade risk, project size, and client or contract requirements.
Related Coverages You May Also Need
Coverage | What it covers |
Workers' Compensation (WSIB / WorkSafeBC / provincial equivalents) | Employee injuries on the job — mandatory in most provinces if you have employees, and administered by your provincial workplace safety board rather than a private insurer |
Commercial Auto | Vehicles used for business, including work trucks and vans |
Tools & Equipment (Inland Marine) | Theft or damage to tools, especially portable ones taken between job sites |
Professional Liability (E&O) | Claims of faulty design, advice, or workmanship not covered by GL — more relevant for trades that do design work |
Umbrella Policy | Extra liability limits above your GL/auto policy caps |
Note: We currently offer General Liability insurance. The coverages above may be added to our offering in the future.
Why It Matters for Trades Specifically
Many general contractors and property managers require proof of GL insurance — a Certificate of Insurance (COI) — before they'll hire a sub-contractor.
Licensing bodies in many provinces and municipalities require proof of liability insurance to obtain or renew a contractor's licence.
Trades like electrical, plumbing, HVAC, and roofing carry higher risk profiles (fire, water damage, falls), so premiums and required limits tend to be higher than for lower-risk trades like painting or handyman work.
What Affects Your Premium
Premiums depend on a number of factors, including:
Trade type (roofing and excavation typically cost more than, say, flooring)
Annual revenue and payroll
Claims history
Coverage limits and deductible
Province and work location