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If you are a builder, contractor, sub-contractor, developer, owner or project manager planning a construction project it can be an exciting time as you prepare for your vision to become reality. There is a great deal of uncertainty in construction; however, and these projects often depend on multiple parties to fulfill their contractual obligations. That is why we regularly assist clients with insurance policies covering builder’s risk, wrap-up liability, commercial general liability and bonding, including bid bonds, performance bonds and labour and material bonds. We also provide commercial vehicle insurance to businesses across Edmonton.

Selecting the Coverage that Works for Your Business

Each business is unique and we work with all parties, including builders, contractors, developers, sub-contractors, project managers and owners to find the right insurance protection for your project.

While each project is unique, there are some common types of commercial insurance policies that will protect you from the risks of construction projects in Edmonton and surrounding areas.

1. Builder’s Risk Insurance

Builder’s risk insurance is also known as course of construction insurance, as it typically provides coverage during the construction period. This insurance is designed to insure projects or buildings against replacement or repair costs while they are under construction and in some cases for a specified period post-construction.

These policies generally cover all property on the construction site including temporary property, such as scaffolding and building materials. The policy covers accidents on the project site that causes damage to the building.

2. Wrap-up Liability

Wrap-up liability insurance policies are a critical component of any major construction project, especially large construction projects. They can be tailored to a particular project, providing third party liability insurance protection for all participants or contractors working on the project.

The policies are usually designed to cover all of the team members involved in the project, such as the owner, developer, general contractor, sub-contractors, project manager and sometimes others, such as consulting engineers or architects. Typically supply or security firms would be excluded from coverage under the policy.

Insurance coverage is provided for most building types: fire resistive, non-combustible, masonry, frame construction and civil works projects, involving the construction of bridges, dams, sewers and watermains, etc. These policies are usually in place during the construction period and afterwards during the warranty period.

3. Commercial General Liability (CGL) Insurance

CGL insurance is not specific to just the construction industry, but is a common form of commercial insurance in Edmonton that protects the business against unexpected risks. With CGL insurance, your business can be protected with an annual policy or multi-year policy (for single projects) from a range of potential common claims, such as bodily injury, property damage or personal injury to third parties that occur on the site.

In the context of construction projects, commercial general liability insurance protects the owners, contractors, suppliers and others from liability resulting from accidents at the construction site that injure individuals or their property.

4. Bonding

There are a number of different bonds used in the construction process. Surety bonds are a three-party contract by which the insurer assures the project owner that the contractor will perform a contract by finishing the agreed upon work to a specific standard. If the contractor fails to meet this obligation, the surety company is required to see the project is completed. Surety bonds can take three forms: bid bond, performance bond, and a labour and material payment bond.

A bid bond provides financial assurance that the bid for a project is made in good faith and that the bidder intends to honour the bid price if the bidder is successful. The bid bond also provides assurance to the project owner that the bidder agrees to provide any other required bonds (e.g. performance bonds or labour and materials bonds) as stipulated should he or she be successful in obtaining the bid.

Performance bonds protect the project owner from financial losses if a contractor performs inadequately under the contractual terms. These bonds are issued at a percentage of the price of the contract, such as 50 percent or 100 percent of the contract price.

Finally, a labour and material payment bond protects suppliers or subcontractors against forfeiture of payment from the general contractor. These types of contracts are also based on a percentage of the unfulfilled contract’s value and issued up to 100 percent of the contract value.

5. Commercial Vehicle Insurance

Many parties in a construction project will rely on commercial vehicles during the course of the project. There are different types of commercial vehicle insurance policies in Edmonton available depending on the needs of your business. In the construction industry, commercial vehicles are often used to transport goods to and from sites under one fleet policy.

Contact MBS Insurance Brokers Ltd. In Edmonton For More Information

At MBS Insurance Brokers Ltd., we have been helping businesses for over 45 years and are a leading full-service brokerage in Alberta, providing bonding and commercial insurance in Edmonton and throughout Western Canada. If you are planning a construction project and have questions about what type of insurance will best protect you, contact a trusted commercial insurance broker in Edmonton today for more information at 780-436-7880. We can provide a quote based on your specific business needs.

How an Insurance Broker Saves You Time and Money

Do you know the benefits of an insurance broker?

Suppose you’re looking for the best insurance coverage at the best rates in Edmonton. In that case, you’ll first want to understand the benefits of an insurance broker and how they can help protect you in all sorts of different situations – whether it be saving you money, time or giving you simple peace of mind.

What Are the Benefits of an Insurance Broker?

Here are some of the many benefits of an insurance broker.

 

1. Saves Time

An insurance broker does all the work for you, so you don’t have to spend your valuable time shopping around for insurance. Instead, you simply provide your broker with information about your needs, and they shop the markets on your behalf.

 

2. Saves Money

Insurance brokers work with many different partners to find the best deals on the insurance that works for you. They take all your needs into account and make recommendations that are in your best interest. They have relationships with many insurance partners and can negotiate competitive rates and discounts, saving you money in the long run.

3. Expert Knowledge and Advice

An insurance broker provides you with the support and expertise you need to find coverage that suits your needs. They work with various products and services to find the coverage that best suits you. In addition, they can draw from an extensive knowledge base and experience to advise you on the best options. 

Insurance Brokers provide expert and unbiased advice. A wealth of knowledge about coverage and market rates combined with expert risk assessment ensures your possessions and business are adequately protected. Whether you are looking into auto insurance rates, tenant insurance, or home insurance rates, your insurance broker can help you every step of the way.

You can utilize their expertise to quickly identify your options and rely on their unbiased advice to help you make the best-informed decision for your situation.

 

4. Working For Your Best Interests

Since insurance brokers do not work with one particular company, they have nothing to gain from recommending a specific product. The insurance company also pays them a standard commission. Thus, there is no financial incentive to choose one insurer over another.

Insurance brokers have your best interests in mind. You can count on them to find you the best rate possible, which can give you the peace of mind you need. You can rest assured knowing that if you ever need to file a claim, one of our brokers will be there by your side to guide you every step of the way. They act as an advisor on insurance-related matters. They will shop the market for the best coverage and rates for you. Since fulfilling your needs is their only priority, they will provide independent, unbiased advice on the right coverage for your situation.

5. Privileged access and rates

Insurance Brokers have access to a wide selection of the best insurance companies in the country. These insurance companies are only accessible by Insurance Brokers. They do not deal with the public directly or with Direct Writers. Brokers enjoy long-standing relationships with these insurance companies. Still, they do not have an affiliation with any specific insurer, enabling brokers to provide you with a broader range of options at competitive rates.

 

6. Transparency

Insurance brokers must give full disclosure about their compensation and its effect on your insurance premium.  They are also required to declare any financial links with specific companies that may be a conflict of interest, enabling you to make the best-informed decision.

 

7. Risk and Advocacy Experience

Extensive experience dealing with different clients and claim situations equips insurance brokers with a broader perspective on how to reduce your risk. Also, in the event of a claim, you can count on your broker to act as your advocate with the insurance company and handle your claim fairly and promptly.

Speak to MBS Insurance in Edmonton about your Coverage

Reach out to MBS Insurance today to determine your home, auto, and commercial coverage options. Over the past 45 years, our experienced team of insurance brokers in Edmonton has earned the trust and loyalty of our clients by delivering superior products and services. We understand your needs and provide you with the best protection and rates.

There are many benefits of an insurance broker. We can help you understand the intricacies of your insurance plan while saving you money at the same time. We are a trusted insurance provider in Edmonton and provide personal and commercial insurance policies to people living in Alberta. We offer the best rates on recreational, auto, property, commercial, and group insurance policies. 

Contact us online for a free quote or by phone at 780-436-7880.

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This article was originally published on October 7, 2016, and updated for 2021.