Finding the Right Project Protection Liability Coverage


Recently, Canada’s real estate market has been the subject of national debate. As the market remains in a frenzy, contractors and project owners continue to push forward on new construction projects that add value to and take advantage of the current market conditions. While experts continue to fear that some regression is in order, the price of residential homes in Canada has been on the rise for well over a year now and contractors have followed suit. Canada’s addiction to buying and building new houses has lead to more collaboration in the construction industry, and as a result, new projects are being completed at a much faster pace. This has increased the level of risk for general contractors and project owners, making it imperative for all parties to have project protection liability coverage. Many large construction projects require liability coverage for all contractors and subcontractors scheduled to work on a project.

Every Construction Project is Unique
Each construction project is different, presenting unique risks and challenges. In today’s construction industry, several contractors and subcontractors work together to follow meticulously planned construction schedules. A typical insurance submission for a construction project will include an application detailing project class, location, size, project participants, experience, and loss history, as well as copies of any relevant engineering reports. Finding the right insurance policy for a specific project can be difficult for owners and contractors alike, however, there are all-encompassing policies that can protect any and all risks posed by a construction project.

Wrap-Up Liability Coverage
Wrap-Up liability coverage is an insurance policy that serves as protection for all participants working on a project. While wrap-up insurance is typically reserved for large undertakings, it can be useful for projects of any size, as it provides protection for all physical assets, business income, liability exposures, and employees that are associated with a particular project. Wrap-up coverage was developed from a need to provide uniform coverage to all parties in a project, while allowing coverage to apply to each insured separately. When applied to a particular project, a Wrap-Up policy becomes the primary insurance policy and holds precedence above all of the individual contractor’s liability policies. Wrap-up coverage can go a long way towards providing the owner with the protection and peace of mind necessary to undergo a major construction project.

Current Conditions Pose Increased Risk
As the price of real estate continues to rise in Canada, contractors will be incentivized to continue building homes at a record pace. New projects are expected to finish faster than ever before, which leaves contractors, subcontractors, and project owners susceptible to more risk. At the current pace, project protection liability coverage becomes even more important for all parties looking to manage the risk they incur when undertaking a particular project.


With Canada’s real estate market in such high demand, it has never been more important to have project protection liability coverage. It is important to disclose all relevant information to your insurance broker in order to ensure that you are covered for all possible liabilities in a given project. Having the right insurance policy can go a long way towards saving your company millions of dollars in the event of an unforeseen event.

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