Canada: Safety First: How Different Insurance Policies Offer Different Security

Construction Insurance

Work sites today can present many safety hazards but even more hazardous may be the pitfalls of trying to negotiate the right insurance package for any given project. In Nova Scotia, the Occupational Health and Safety Act, along with its Regulations, offers contractors guidance on acceptable safe practices, but there is no handy guide to negotiate through the insurance process. So how does one ensure that they are insured against all the risks associated with construction? And what types of insurance protect for situations where a visitor to a site falls down stairs that were not properly covered at a work site, or a torch is left on and causes a fire, or even theft of property? The best advice is to deal with insurance up front in the construction contract and review all policies to ensure you are protected against the risks you wanted protection from.

Insurance at a construction site can protect against a large host of different issues. But insurance comes in a variety of shapes and sizes and it is important for a company to know exactly what protection they need. A typical construction project could require three different insurance policies – Property Insurance, Builder's Risk Insurance and Commercial General Liability. But before analysing each specific policy, the starting point for any contractor is to deal with who is going to carry what form of insurance in the construction contract. Clauses dealing with whether the property owner or the contractor will be named as insureds in any given policy can have serious effects on who is protected from what risks and all companies should review limitation of liability and subrogation clauses carefully so they can best determine what risks they may need protection from.

As a starting point, it is important to protect against damage to the property under construction. This means only the property under construction and its contents. Often, Property Insurance is taken out by the owner of the building and comes as either an "all risks" or "named perils" policy. While an "all risks" policy sounds like a catch-all category there are instances where an "all risks" policy will not cover things that a "named perils" policy does. For instance it is typical for an "all risks" policy to exclude the cost of rectifying faulty workmanship. A "named perils" policy does exactly what its name suggests; it covers a peril that is named in the policy. Therefore, the typical property policy is an "all risks" policy that is meant to provide coverage for all damage to the property with specific exclusions for things like faulty workmanship. If you are looking for protection from faulty workmanship, you should discuss a "named perils" policy with the insurance company.

In order for a construction company to be adequately protected for all claims of property damage, including damage to their own on site property, Builder's Risk Insurance can be key. This type of insurance covers loss or damage to a construction project during the construction process. It offers additional insurance to the contractor throughout the construction process since the Property Insurance is usually taken out by the owner of the building. Another typical situation where you would see Builder's Risk Insurance instead of Property Insurance is where you have a new construction. Builder's Risk covers the building throughout the construction process and before the owner places an All Risks Property Insurance Policy once construction is complete. The policy will generally cover the time period from the date work starts to the date the project is fully complete, and will also specify the property that is insured, the perils insured against, and the territory to which it applies. The policy will include exclusions, most likely again for faulty workmanship or design, and the policy must be looked at carefully to determine what is covered and for how long. This policy will usually offer protection to the property of the contractor as well. Should any tool or item go missing from the construction site, the contractor could look to their Builder's Risk Policy for coverage.

Finally, it is important to consider that injuries can be caused by accidents on the job site. Usually workers are covered by Worker's Compensation but when a visitor to the site injures him/herself, it is important to have insurance to cover any claim for such injuries or losses. Commercial General Liability Insurance policies are designed to cover claims brought by third parties for property damage or personal injury. CGL policies cover "accidents" which obviously does not include deliberate damage. However, the most significant exception to CGL coverage is that it does not cover claims to the contractor or owner's own products, property or work.

Insurance policies can be difficult to understand but a good rule of thumb is to read your policy and look to make sure you are protected for any damage to the property under construction, the property or tools you will be using to complete the construction process, and any injury, loss or damage to third parties who may be visiting the site at any time. If these three areas are covered, then you have decreased your risks of loss substantially.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.