Construction insurance

CONSTRUCTION

Insurance for construction companies in Quebec

General, specialized and residential contractors: protect your construction sites with liability + construction site risks + equipment + completed work coverage that complies with RBQ requirements.

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Starting at $2,500

Annual premium

$2M to $10M

RC Limits

RBQ

Compliant

AMF

Certified brokers

The construction industry in Quebec accumulates risks that evolve every day depending on the site : injury to a worker or passerby, collapse of a structure, theft of equipment, fire, construction defect, claim by a contractor or a buyer. The Régie du bâtiment du Québec (RBQ) requires proof of civil liability insurance of at least $2 million for any contractor’s licence. Beyond compliance, a good policy also protects equipment, materials, work-in-progress, and contractual commitments to customers.

IN BRIEF

Construction insurance (contractors)

The construction sector (RBQ mandatory) covers residential, commercial and institutional. Integrated policies: RC, course of construction, equipment, vehicles, and surety bonds.

Suretyship: Public contracts (government, municipalities) require a bid, performance, and pledge and materials bond. Linkia (Assur360) issues these guarantees.

The 6 essential protections in construction

Entrepreneur liability

Injury to others, property damage during the work. Limits of $2 million to $10 million depending on the contract.

Construction site risks

Materials, building under construction, theft, vandalism, fire — all the way to final delivery.

Equipment and tools

Cranes, excavators, scaffolding, commercial vehicles, portable tools, trailers.

Completed work

Claims that arise after the end of the work: defects in workmanship, apparent defects.

Deposit and bonds

Performance bond, pledge and materials bond, bid — required by several public donors.

Employer liability

CNESST supplemental coverage for out-of-scope claims.

💡 Broker’s advice

In construction, accurate reporting of your activities is critical. A renovation contractor who occasionally takes on a demolition or work at height contract without declaring it may have his claim denied. Declare all sub-activities, even marginal ones, at the time of subscription. Revise your policy for each new important policy type.

Frequently Asked Questions

Does the RBQ require insurance for all contractors?

Yes. To obtain and maintain a general or specialized contractor’s licence, the RBQ requires a minimum RC of $2 million. Several commercial, municipal or institutional clients are asking for $5 million to $10 million. Your broker issues the required certificate within 24-48 hours.

How much does construction insurance cost in Quebec?

For a contractor with 5 to 15 employees and a turnover of $1 to $3 million: between $2,500 and $12,000 per year for a RC of $2 million. Contractors in steel structures, deep excavation or work at heights pay more ($10,000 to $40,000) because of the increased risk.

Are construction defects covered?

Physical damage resulting from a defect (leak that damages a floor, short circuit that causes a fire) is generally covered by the RC for completed work. The defects themselves (improper installation of a shingle, improper welding) are not covered — this is a standard exclusion. An E&O policy completes the coverage.

Can I combine the liability and equipment in one policy?

Yes. Most insurers offer an integrated commercial construction policy that combines liability, property, equipment, construction risks, commercial vehicles and surety bonds. Overall premium 15-25% cheaper than a separate policy package.

Do my subcontractors need to have their own insurance?

Yes — and you must require proof of insurance before each policy begins. Your own policy must include the “Subcontractors’ Subsidiary Liability”. Uninsured subcontractors are your financial responsibility.

A construction site is vandalized during the night — what do the police cover?

Construction site risks (also known as “builder’s risk” or “installation floater”) cover vandalism, theft of materials, breakage and fire. Active coverage from the start of the work until the final delivery to the customer. Common exclusions: earthquake (rider), flood designated area.

Are work at height or in confined spaces covered?

Yes, if your policy explicitly states this. Work at a height of more than 15 m, in enclosed spaces or underground, often requires amendments and an increase in premium. Declare these activities at the time of subscription to avoid surprise exclusions.

A buyer sues me for hidden defects 3 years after the end of the work — am I covered?

Possibly — if your policy included work completed coverage at the time of the work AND is still active at the time of the claim. The limitation period in Quebec can be up to 10 years for major defects. Maintain your policy without interruption.

Is my rented equipment covered?

Yes, via the equipment endorsement rented in your name. Typical limit: $100,000 to $500,000 per event. Essential if you regularly rent cranes, excavators or aerial work platforms.

Construction contractors throughout Quebec

Assur360 supports businesses throughout Quebec: Montreal, Quebec City, Laval, Gatineau, Longueuil, Sherbrooke, Trois-Rivières and Saguenay. From residential renovation in Laval to major commercial projects in Montreal, from municipal projects in the Outaouais to industrial construction in the Mauricie region: our brokers are familiar with the requirements of the RBQ, municipalities and major contractors.

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