Ontario Builder’s Risk Insurance

Protect your construction project with Ontario builder’s risk insurance

Builder’s risk insurance (also known as course of construction insurance) is essential protection for any project in progress. It covers the structure under construction as well as materials and supplies, whether they’re installed, waiting onsite, in transit, or stored offsite. This ensures your investment is protected against risks like fire, theft, vandalism, or weather-related damage throughout the building process.

This type of policy is highly recommended for a wide range of Ontario projects, including:

• Residential new builds
• Major renovations or additions
• Commercial developments
• Industrial facilities
• Civil infrastructure projects such as bridges, roads, and public works

Your guide to builder’s risk insurance in Ontario

Every construction or renovation project comes with risks. Without the right protection, even a minor incident can turn into a major financial setback. At Acera Insurance, our advisors bring decades of specialized experience in Ontario’s construction sector. We design course of construction (builder’s risk) policies that safeguard your project from day one – covering you from the moment ground is broken until the work is complete. Learn more about what is and isn’t included below.

What does Ontario builder’s risk include?

Builder’s risk insurance provides protection for structures, materials, and expenses during a construction or renovation project. Coverage can vary by insurer, but common inclusions are:

• Building – The cost to repair or replace the structure under construction after an insured loss.
• Materials – Replacement value for building materials that are damaged, destroyed, or stolen while on-site, in transit, or temporarily stored off-site.
• Debris Removal – Costs to remove debris after a covered loss, such as a fire or storm.
• Soft Costs – Expenses such as architectural or engineering fees, permitting costs, or legal expenses tied to delays caused by a loss.
• Labour & Equipment – The value of labour and construction equipment lost or damaged during a covered event.
• Temporary Structures – Coverage for scaffolding, site trailers, or forms used during construction.
• Testing Coverage – Protection for systems such as HVAC, plumbing, or electrical equipment while being tested.
• Business Interruption / Project Delay Costs – Compensation for lost income or added expenses if a project is delayed due to a covered loss.

Builder’s risk insurance in Ontario is customizable, so it’s important to work with an Acera Insurance broker to ensure your project is fully protected.

What is not covered with an Ontario builder’s risk policy?

While builder’s risk insurance offers broad protection for construction projects, it does not cover everything. It’s important to understand common exclusions so you can arrange additional coverage where needed:

• Faulty design, workmanship, or professional negligence – Errors by architects, engineers, or contractors are not included (these are typically covered under professional liability insurance).
• Intentional criminal acts – Fraud or deliberate damage caused by an owner, employee, or contractor is excluded.
• Contractor’s tools and equipment – Portable tools and machinery generally require a separate equipment or tools floater.
• Third-party liability – Injuries or property damage to others are not covered; you’ll need commercial general liability (CGL) insurance for that.
• Damage to automobiles and auto liability – Company trucks and vehicles must be insured under a commercial auto policy.

Our Acera Insurance brokers can help you identify these gaps and recommend complementary coverages (such as CGL, equipment insurance, or professional liability) to ensure your Ontario construction project is fully protected.