Contractor insurance cost in Canada depends mostly on your trade, your revenue, your crew and the liability limit your contracts demand. For a solo trade contractor in Ontario with $150,000 in revenue and $2 million of liability, Instasure's model estimates about $136 to $236 a month, as of October 2026. Below are dated estimates by business size, 2026 workers' compensation rates by trade, and the levers that move your own premium.
How much does contractor insurance cost in Canada?
For a solo trade contractor in Ontario with $150,000 in revenue and $2 million of commercial general liability (CGL), Instasure's model estimates a typical $181 a month, or about $2,170 a year, as of October 2026. An owner with four employees and $500,000 in revenue comes to about $304 a month, or $3,650 a year.
These are estimates for example profiles, not quotes and not averages of policies sold. The table shows how the estimate grows with the size of the business.
| Example profile | Annual revenue | Employees | Typical monthly estimate | Monthly range | Typical annual estimate |
|---|---|---|---|---|---|
| Solo, smaller volume | $100,000 | 0 | $157 | $118 to $204 | $1,890 |
| Solo contractor | $150,000 | 0 | $181 | $136 to $236 | $2,170 |
| Solo, busy year | $300,000 | 0 | $231 | $173 to $300 | $2,770 |
| Small crew | $250,000 | 2 | $228 | $171 to $296 | $2,730 |
| Crew of four | $500,000 | 4 | $304 | $228 to $395 | $3,650 |
| Growing company | $1,000,000 | 8 | $422 | $317 to $549 | $5,070 |
Instasure estimates for example profiles as of October 2026: a skilled trade contractor in Ontario with $2 million of CGL in a contractor package. Modelled figures, not quotes. Our model uses one contractor base for every trade and doesn't vary contractor estimates by province yet.
What the typical figure includes
The typical figure is a contractor package, not liability alone. Here is how the price changes with the package level in the same model.
| Package level | What it includes | Solo, $150,000 | 4 employees, $500,000 |
|---|---|---|---|
| CGL only | Third-party injury and property damage, products and completed operations, a certificate of insurance | $127 a month | $213 a month |
| Contractor package (typical) | CGL plus contents and equipment, business interruption, crime and money cover | $181 a month | $304 a month |
| Package plus E&O and cyber | Adds professional liability, cyber and privacy breach cover, higher limits | $272 a month | $456 a month |
Instasure estimates, Ontario example profiles, $2 million CGL, as of October 2026.
Contractor insurance cost by trade: plumber, electrician, HVAC, roofer and more
Insurers classify you by the work you do, and that classification is usually the biggest single factor in your price. Our estimate model doesn't separate trades yet, so a roofer and a painter get the same example figure above. A licensed advisor's quote will reflect your trade. Here's what each trade's insurer is pricing:
- Roofing insurance: working at heights and leaks from completed work. Roofers also face higher workers' compensation costs.
- Plumber insurance: water damage to a client's home from a failed fitting, plus tools stolen from vans and work in crawl spaces.
- Electrician insurance: a fire traced to wiring you installed, expensive testing equipment, and licensing and permit rules.
- HVAC insurance: furnace and air-conditioning installs, carbon monoxide and fire exposure, and rooftop and ductwork jobs.
- Landscaping insurance: mowers and trailers, chemicals, and snow removal liability if you plow in winter.
- Cleaning business insurance: damage to a client's belongings, and bonding against a claim of employee theft.
- Painters, carpenters and handyman insurance: mixed small jobs inside occupied homes. These fall under general contractor insurance, so describe every type of job you take on.
What workers' comp rates show about trade risk
Workers' compensation isn't part of your private policy, but provincial boards publish rates by trade. That makes them the clearest public signal of how injury risk differs between trades. The table uses WorkSafeBC's 2026 base rates, approved by its board of directors on October 20, 2025.
| Trade (WorkSafeBC classification unit) | 2025 base rate | 2026 base rate | Change | 2026 cost per $50,000 of payroll |
|---|---|---|---|---|
| Steep slope roofing (721051) | $5.29 | $4.32 | −18.3% | $2,160 |
| Landscaping, lawn or garden maintenance, or weed control (764060) | $2.87 | $3.14 | +9.4% | $1,570 |
| Low slope roofing (721036) | $3.55 | $3.11 | −12.4% | $1,555 |
| Painting or wallpapering (721041) | $2.64 | $2.35 | −11.0% | $1,175 |
| Electrical work (721019) | $1.95 | $2.12 | +8.7% | $1,060 |
| Commercial cleaning or janitorial services (764014) | $1.13 | $1.03 | −8.8% | $515 |
| All BC employers (average base rate) | $1.55 | $1.55 | No change | $775 |
Base rates per $100 of assessable payroll, from WorkSafeBC's 2026 rate decision and its 2026 premium rates page. The last column is our arithmetic for illustration. Your firm's rate can differ from the base rate because of experience adjustments. Plumbing, heating and air-conditioning work falls under more than one unit, so check your own classification.
Steep slope roofing pays about double the electrical rate and about four times the cleaning rate. Private liability insurers set their own rates, but they price the same kinds of risk: falls, fires, water damage and the cost of fixing completed work.
Revenue, payroll and subcontractor costs
Revenue is how most insurers size your exposure: more jobs mean more chances for a claim. The relationship isn't one-to-one, though. In our model, doubling a solo contractor's revenue from $150,000 to $300,000 raises the typical estimate from $181 to $231 a month, about 28%. Each employee adds a little more on top.
Payroll drives workers' compensation directly. The WSIB in Ontario works out a premium as insurable earnings multiplied by your premium rate, divided by 100. Its 2026 average premium rate is $1.23 per $100 of insurable payroll, down from $1.25 in 2025. Your class rate may be well above or below that average.
Subcontractors change the picture in two ways. Work you subcontract is still your job in the client's eyes, so insurers ask what share you sub out. And if a subcontractor has no insurance of their own, a claim from their work can land on your policy. That's why collecting a current certificate of insurance from every subcontractor matters before they start.
Limits and project requirements
Your contracts usually decide your limit, and the limit is one of the easiest cost factors to see. Here's how contractor liability insurance cost moves with the CGL limit in our model:
| CGL limit | Solo, $150,000 revenue | 4 employees, $500,000 revenue |
|---|---|---|
| $1 million | $154 a month | $258 a month |
| $2 million | $181 a month | $304 a month |
| $5 million | $245 a month | $410 a month |
Instasure estimates, Ontario example profiles, contractor package, as of October 2026.
Going from $2 million to $5 million adds about a third in this model, far less than the jump in the limit itself. Before you pick a limit, read the insurance clause in each contract. Commercial clients, property managers and general contractors often name a minimum limit. Some also ask to be added as an additional insured on your policy.
General contractor insurance cost tends to sit above a single trade's, because a general contractor answers for the whole project and every subcontractor on it. Larger projects may also call for coverage on the building or materials while work is under way. An installation floater covers materials you are installing until the client accepts the job.
Claims history, experience and safety programs
Past claims are often an insurer's strongest guide to future ones. One large completed-operations claim, such as water damage after a renovation, can affect your price at renewal. New businesses can also pay more at first, because the insurer has no track record to rate.
Safety work shows up in two places. With workers' compensation, WorkSafeBC can adjust an employer's rate away from the base rate based on its claims experience. With private insurers, written safety procedures, training records, signed contracts and photos of finished work all help you answer underwriting questions. They also help you defend a claim.
Tools, vans and other add-ons
Liability is only part of the bill. Most trades also need:
- Tools and equipment floater: theft or damage to tools on site, in transit or in storage. List high-value items such as testing gear, lasers and generators.
- Installation floater: materials and fixtures until the job is accepted.
- Commercial auto: vans, pickups and trailers used for work. A personal auto policy may not cover business use, so tell your insurer how you use the vehicle. Our commercial auto desk handles fleets and mixed driver records. If you run heavier trucks, see our guide to trucking insurance cost.
- Professional liability (E&O): for design-build work, estimating or advice clients rely on. In our model it's part of the top package level.
How to lower your contractor insurance cost
These steps cut cost without opening a gap in the cover your contracts and clients need.
- Describe your work accurately. List every type of job, including occasional ones. A wrong classification can lead to a denied claim.
- Match limits to your contracts. Carry what your largest regular client requires, and raise it for a specific job only when needed.
- Collect subcontractor certificates. Check limits and expiry dates before each job starts.
- Write down your safety program. Training, fall protection and job-site checklists support both your private premium and your workers' comp record.
- Protect your tools. Lock vans, store equipment securely overnight and keep a list of serial numbers.
- Choose a deductible you can afford. A higher deductible can lower the premium, if your cash flow can handle it after a loss.
- Ask about annual payment. Monthly billing can cost more.
- Review every renewal. Revenue, crew size and the work you take on change, and your coverage should follow.
Not sure which coverages and limits fit your business? Our business coverage checker suggests a starting point in a few minutes.
Contractor insurance in Ontario, BC and Alberta
Ontario. All the example estimates above are Ontario profiles. If you have workers, check your WSIB class rate alongside your liability quote, since both are costs of every job. See contractor insurance Ontario for provincial details and an instant estimate.
British Columbia. WorkSafeBC kept its 2026 average base rate at $1.55 per $100 of assessable payroll, but trade rates moved both ways. Roofing and painting fell, while landscaping and electrical work rose. Compare liability options on contractor insurance BC.
Alberta. Workers' compensation runs through Alberta's Workers' Compensation Board, with its own industry rates. Our model applies the same contractor base, so your real quote is what counts. Start with contractor insurance Alberta.
How we built these estimates
- Source. Instasure figures come from our estimate engine, last reviewed in October 2026. They are modelled estimates for example profiles, not quotes or offers.
- Method. The model starts from a contractor base for a $2 million CGL package. It then adjusts for revenue, number of employees and the liability limit.
- Range. Each range runs from about 25% below to 30% above the typical figure, to reflect differences between insurers and businesses.
- Limits. The model doesn't yet price trade, province, claims history, deductibles, tools or vehicles. A licensed advisor's quote does.
- Outside data. Workers' comp rates come from WorkSafeBC and the WSIB. They are payroll-based premiums from public boards, not private insurance prices.
We plan to refresh this guide every quarter.
Michael's take
As a planner, and as co-owner of a building services company, I treat insurance as a cost of every job, like fuel or materials. My rule of thumb is to build it into your pricing from the first quote, so it never feels like a surprise bill at renewal. Add workers' comp on top if you have a crew. A contractor who prices jobs without these costs is working for less than they think.
Where I'd look for savings is accuracy and paperwork, not lower limits. An under-described trade or an uninsured subcontractor can turn one claim into a business-ending one. Keep an emergency fund that covers your deductible and a few weeks of downtime. That protects your household plan as well as your business.
Next steps
Your own price depends on your trade, revenue, crew, limits and claims history. Get an instant estimate with our contractor insurance quote in about a minute. Then compare coverages on the contractor insurance page or your trade's page. For the wider picture, see small business insurance cost in Canada. A licensed advisor in your province can then compare insurers and confirm real quotes. Advisor service isn't available in Quebec or the territories yet.
