A Guide to Builder’s Risk Insurance in Ontario
If you’re managing a construction project in Ontario—whether it’s a commercial build, renovation, or new development—there’s one critical coverage you shouldn’t overlook: Builder’s Risk Insurance.
At TG Group, we work closely with contractors, developers, and business owners across Owen Sound and beyond to ensure their projects are protected from the ground up.
What Is Builder’s Risk Insurance?
Builder’s Risk Insurance is a specialized type of property insurance designed to protect buildings and projects during construction or renovation.
Unlike standard property policies, this coverage fills a crucial gap by protecting your investment during the most vulnerable phase of a project.
What Does It Cover?
A Builder’s Risk policy protects the structure itself, along with materials, equipment, and temporary installations associated with the project. Coverage typically includes risks such as fire, theft, vandalism, and weather-related damage, including wind or hail. Materials in transit or stored on-site are often included as well.
In fact, according to Aviva, the top Builder’s Risk claims are caused by:
Wind: 28%
Water seepage or leakage: 10%
Arson or fire: 8%
Vandalism: 3%
Collapse: 5%
Depending on your project, additional protection can be added for:
Soft costs like permits, architectural fees, and legal expenses
Delays in completion
Loss of rental income
It’s equally important to understand what’s not covered. Builder’s Risk does not replace general liability insurance, and it won’t cover faulty workmanship, normal wear and tear, or certain risks like flood or earthquake unless specifically added.
Who Needs Builder’s Risk Insurance?
This coverage is essential for anyone with a financial stake in a construction project. That includes contractors, subcontractors, property owners, and developers. Whether you’re working on a new commercial build, tenant fit-up, or major renovation, Builder’s Risk Insurance helps ensure your project is protected from start to finish.
Is It Required in Ontario?
Builder’s Risk Insurance isn’t legally required in Ontario, but it is often mandated by lenders and included in construction contracts. Even when it’s not required, it’s considered a best practice due to the financial risks involved in any build.
How TG Group Supports Your Project
At TG Group, we understand the unique risks that come with construction projects in Ontario. We work closely with you to design a Builder’s Risk policy that aligns with your project scope, budget, and contractual requirements.
Our team provides:
Customized coverage with no gaps or unnecessary extras
Access to specialized insurers for construction risks
Contract reviews to ensure compliance with lenders and stakeholders
Ongoing support as your project progresses
Build with Confidence
Construction projects come with enough uncertainty—your insurance coverage shouldn’t be one of them. Builder’s Risk Insurance helps keep your investment protected and your timeline on track.
Connect with TG Group today to make sure your next project is covered from the ground up. Have questions about Builder’s Risk Insurance? Contact our team today at 519-370-2006 or info@tg-group.ca to get started. You can also visit our website.
