Contracting businesses change quickly. New jobs, new tools, added vehicles, subcontractors, changing material costs, weather exposure, and updated contract requirements can all affect your insurance needs.

That is why contractor insurance should not be reviewed only when something goes wrong or right before a major project begins. A regular insurance review can help identify gaps, update outdated limits, and make sure your coverage still reflects the way your business operates today.

For contractors in Atlantic Canada, including Newfoundland and Labrador and Nova Scotia, this is especially important. Coastal weather, winter conditions, mobile equipment, changing job sites, and subcontractor relationships can all create risks that should be reviewed regularly.

At Munn Insurance, we help contractors, builders, and trades businesses keep their insurance programs aligned with their operations. Use this checklist as a guide for your next annual review, renewal discussion, or anytime your business changes.

1. Review your commercial general liability coverage

Commercial general liability, often called CGL insurance, is a key part of a contractor’s insurance program. It can help protect your business if you are held responsible for third-party bodily injury or property damage.

Because your work can change over time, your CGL coverage should be reviewed regularly. If you have added new services, taken on larger jobs, hired subcontractors, changed your business structure, or started working with different types of clients, your policy may need to be updated.

It is also important to review your liability limits. Some contracts, property owners, general contractors, municipalities, or commercial clients may require higher limits than your current policy provides.

2. Consider pollution and environmental exposures

Many contractors do not realize that pollution-related losses may be limited or excluded under a standard liability policy. Depending on the work being performed, this can create a significant gap.

Pollution exposure can include more than major environmental incidents. It may involve fuel spills, chemical use, mould, dust, fumes, asbestos, contaminated soil, overspray, runoff, or damage caused during excavation, renovation, demolition, or remediation work.

As your work changes, these risks should be revisited. If you take on jobs involving older buildings, excavation, fuel storage, environmental cleanup, or materials that could create contamination concerns, ask your broker whether pollution liability coverage should be considered.

3. Check builders risk or course of construction needs

Builders risk insurance, also known as course of construction coverage, is designed to protect a project while it is being built or renovated. It may respond to losses involving fire, theft, vandalism, wind, certain weather events, and other covered damage during construction.

Not every contractor needs to arrange this coverage for every job, but every contractor should understand when it may be required and who is responsible for it.

During your regular insurance review, discuss the types of projects you typically take on and whether builders risk coverage is something you may need to arrange, confirm, or request from another party.

Key questions include:

• Who usually arranges builders risk coverage on your jobs?
• Are you ever responsible for materials before they are installed?
• Are materials covered while stored off site or in transit?
• Do your contracts clearly state who is responsible for project property coverage?
• Are project values and timelines being properly reported?

A regular review can help make sure you are not assuming coverage exists when it does not.

4. Review professional liability if you provide advice, design, or specifications

Not every contractor needs professional liability insurance, but it can be important if your business provides design input, drawings, project management, consulting, specifications, inspections, estimates, or other professional recommendations.

A CGL policy is generally focused on bodily injury and property damage. It may not respond to claims alleging financial loss caused by an error, omission, design issue, incorrect advice, or failure to meet a professional standard.

If your role has expanded beyond labour or installation, professional liability, also known as errors and omissions insurance, should be part of your insurance conversation.

5. Update your commercial auto coverage

Vehicles are essential for many contractors. You may use trucks, vans, trailers, or service vehicles to move tools, materials, employees, and equipment from one job site to another.
Your commercial auto insurance should be reviewed whenever you add or remove vehicles, change drivers, buy trailers, start towing equipment, expand service areas, or use personal vehicles for business purposes.

You should also review your liability limits, especially if your vehicles are frequently on the road, carrying materials, towing equipment, or travelling between job sites across Newfoundland and Labrador, Nova Scotia, or other parts of Atlantic Canada.

6. Verify subcontractor insurance practices

Subcontractors can bring valuable expertise to a job, but they can also create additional risk. If a subcontractor causes property damage, injures someone, delays work, or performs defective work, your business may still be pulled into the dispute.

As part of your regular insurance review, make sure you have a consistent process for collecting and reviewing subcontractor certificates of insurance.

Before using subcontractors, confirm that:

• Their coverage is active
• Their limits meet your requirements
• Their policy reflects the work being performed
• Certificates are updated when they expire
• Your business is added as an additional insured where appropriate
• Contract requirements are being followed

A consistent process can help protect your business and reduce confusion if a claim occurs.

7. Update tools, equipment, and materials coverage

Tools and equipment are often among a contractor’s most important assets. Theft, fire, vandalism, collision, or damage in transit can disrupt your work and create major replacement costs.

Equipment values can also become outdated quickly. If you have purchased new tools, leased equipment, added trailers, or increased the amount of materials you carry, your policy limits may no longer be accurate.

Review whether your policy covers:

• Tools and equipment at your premises
• Property on job sites
• Items in transit
• Equipment stored in trailers or vehicles
• Rented, borrowed, or leased equipment
• Materials waiting to be installed

Keeping an updated inventory with values, serial numbers, receipts, and photos can also make the claims process easier.

8. Review contract insurance requirements

Construction contracts often include detailed insurance requirements. These may include minimum liability limits, builders risk obligations, additional insured wording, waivers of subrogation, certificate requirements, indemnity clauses, or coverage that must remain in place for a certain period.

Instead of reviewing contract wording only when a new job comes in, it is helpful to discuss common contract requirements with your broker during your annual insurance review.

This can help you understand which requirements your current policy already meets and which ones may require changes, certificates, endorsements, or additional coverage.

9. Make sure policy dates and business operations stay aligned

One common insurance issue is allowing policies, certificates, equipment schedules, or project-specific coverage to become outdated while the business continues to operate. During each review, confirm that your policies remain active and accurately reflect your current business. This includes your legal business name, operations, locations, vehicles, equipment, employees, subcontractor use, revenue, payroll, and the types of work you perform.

You should also contact your broker between renewals if your business changes significantly. Waiting until renewal may leave gaps in the meantime.

Final thoughts

Contractor insurance is not a one-time decision. As your work changes, your insurance should be reviewed and updated to match.

A regular review can help you identify gaps, avoid outdated limits, understand contract requirements, and make sure your coverage continues to support the way your business operates.

At Munn Insurance, we help contractors, builders, and trades businesses across Atlantic Canada review their risks and build insurance solutions that reflect the work they do.

Need to review your contractor or trades insurance? Contact Munn Insurance today at 1-855-726-8627 to speak with one of our contractor insurance experts or visit us online at www.munninsurance.com.