Does Your Calgary Contractor's Business Have Liability Insurance?

September 18, 2025 / 5 mins read

You could face liability claims from clients or suppliers that involve injury or property damage. Are you financially prepared for that? Business liability insurance helps financially protect Calgary contractors against lawsuits.

Without any or enough business liability insurance, your Calgary contractor’s business could face harmful financial and reputational difficulties if you get sued. Can you afford that?

Western Financial Group, a 100% Canadian company, can help you navigate your business, car, and home insurance during this period of economic uncertainty.

Western Financial Group is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We’ll work with our insurance partners to find the best business coverage rates for your Calgary contractor business.

We make the process easy by getting insurance quotes for you to choose from and giving you policy coverage options that suit your Calgary business’s specific needs.

Who should get contractor insurance?

The following are examples of trades in Calgary’s construction industry that need contractor’s insurance:

Welders
Painters
Electricians
Plumbers
Carpenters
Roofers
Drywallers
Masonry
Excavation
Deck and fence builders
Landscapers
Excavation
HVAC
Pavers
Snow removal

Why do Calgary contractors need liability insurance?

Liability insurance for Calgary contractors provides financial protection should you or your employees be named in a lawsuit.

As a Calgary contractor, you need to have insurance coverage tailored to the specific risks in your construction work and the equipment you own.

Liability insurance is an essential part of your Calgary contractor insurance coverage. Here are the liability coverages that you need to help protect your contractor business from lawsuits.

Commercial general liability (CGL) insurance

The most important type of insurance you need for your Calgary contractor company is commercial general liability. If you were sued, CGL insurance would help cover the legal costs to defend the claim against your business in court, as well as costs to cover damages to compensate third parties.

What kind of risks does CGL insurance cover?

Commercial general liability covers risks such as:

Injury to another person who is not your employee
Damage to someone’s property, damage to rented property.
Medical bills if someone is injured, legal and settlement costs of liability lawsuits filed against you.
Commercial general liability insurance also helps cover the costs of liability lawsuits related to slander and libel.

Professional liability insurance

Professional liability insurance helps protect Calgary contractors against claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.

In the case of a negligence claim, for example, a Calgary contractor with this type of insurance would have its policy pay for some or all of the claim costs.

Cyber liability insurance

If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system for your Calgary contractor business. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers that they were affected.

How can Calgary business owners save on their insurance with Western?

Western Financial Group helps business owners save on their insurance with the following:

Bundle and save: They’re generally available when you bundle liability, commercial auto, and property insurance.
Multiple quotes to suit your needs: Western Financial Group is a national insurance broker that partners with Canada’s leading insurers. We’ll get you multiple business insurance quotes to suit your needs and to help you save money.
Cost: Depends on factors such as services provided, location and size, deductibles, revenue, and any past claims. We’ll get you the best price possible to help you save on your business insurance for your Calgary contractor business.

What other types of insurance are needed for Calgary contractors?

Tools and equipment insurance

This type of insurance provides financial protection for any transportable tools or equipment that Calgarya construction businesses use to complete their work projects.

Tools and equipment coverage can provide reimbursement to repair or replace tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.

Any item valued at less than $1,500 is considered a tool and anything valued above $1,500 is considered equipment.

Commercial property insurance

Whether you rent or own your Calgary contractor business location, commercial property insurance can provide financial coverage for physical loss, such as a fire, or damage to your business property and its contents.

Commercial auto insurance

Any vehicles used by your Calgary contractor business need to be covered by commercial auto insurance, including leased or rented vehicles and personal vehicles used by your or your employees for work. Your personal car insurance usually does not cover your work vehicles.

Commercial auto insurance covers medical fees, legal costs, and repair or replacement costs if your company's vehicles are involved in an accident. This type of insurance also covers theft and vandalism.

Builder’s risk

Builder’s risk insurance is essential for protecting projects while they are being built or renovated by Calgary contractors. Builders risk insurance protects specific work sites from:

Fire, vandalism, theft
Weather-related damage during construction
Materials and equipment on-site or in transit
Structural damage or collapse
Project interruption costs due to insured event.

Business interruption insurance

This type of insurance supports you when your Calgary contractor business can’t operate due to a covered loss.

There are a number of losses that could force your construction company to shut down. Some examples are:

Damage to your equipment from fire or vandalism
A major reduction in revenue due to a client/supplier facing losses of their own
A disruption in your supply chain

Business interruption insurance can help with these expenses:

Payroll
Rent
Utilities
Property taxes
Alarm monitoring
Relocation of your business

How much does Calgary contractor insurance cost?

The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.

What do I do if I have a claim against my Calgary business?

Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
Know your policy so that when you contact your broker you are familiar with what will be covered or not.
Document the damage. Take photos right away and write down what happened.
Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

Do you have the best Calgary business insurance rate that suits your work?
Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
Are you or your employees using personal vehicles for work?

Western Financial Group makes insurance easy for you

We get multiple insurance quotes for you to choose from and give you policy coverage options that suit your Calgary business’s specific needs at the right price for you.

Our experts are available now to help you navigate the business insurance journey to protect your Calgary contractor business.

Why Western?

100% Canadian!

Get the best business insurance in Calgary

We’ll help you save money with competitive insurance quotes

Serving Canadians for over 100 years.

5 FAQs

Does Calgary contractor insurance cover subcontractors?

Subcontractors in Calgary typically need their own insurance, especially general liability insurance and tools and equipment coverage. Most contractor policies do not automatically extend to subcontractors unless they are specifically added as "additional insured" to the policy.

As a Calgary contractor, can I get coverage for unique risks or special equipment?

Yes, Calgary contractors can add endorsements or separate policies for unique risks, such as installation risks, pollution liability, specific machinery breakdown, goods in transit, or protection for highly specialized tools. Insurers will often tailor policies or add-ons based on a Calgary contractor's trade and risk exposure. Western Financial Group can help contractors get customized business insurance for their specific construction trade.

Can business insurance policies for Calgary contractors be changed?

Yes, it can be changed. Coverage, limits, or endorsements can be adjusted as the needs for your Calgary contractor business change. Your business insurance policy can be customized to fit your needs as a Calgary contractor.

Do I need Calgary contractor insurance if I have a construction bond?

Yes, you do. Having a bond does not replace the need for insurance if you are a Calgary contractor. A bond and insurance serve different purposes and protect different parties. A bond, such as a performance bond or payment bond, protects the project owner (client) and guarantees that the contractor will fulfill all contractual obligations. If the contractor defaults, the bond covers the losses, but the contractor must repay the surety for any claims paid out. On the other hand, contractor insurance directly protects the contractor from financial losses due to accidents, property damage, injuries, or lawsuits arising from their business operations.

Why should Calgary contractors get their business insurance with Western?

Western Financial Group customizes commercial insurance coverage to specific trades in Calgary’s construction industry. We provide access to a wide variety of insurance markets to make sure that contractors get a competitive insurance package with competitive pricing.