Why you need insurance as a civil or heavy builder?

As a civil builder, you play a crucial role in shaping our infrastructure, such as building roads, railways, bridges, tunnels, dams, and sewer systems. Heavy builders also work on large-scale construction projects, such as airports and waterways, that support entire communities and the economy.

However, these projects are often more complex than residential or commercial construction. They require extensive coordination between engineers, specialists, and various contracting companies. Moreover, builders also face challenges like labour shortages, supply delays, unpredictable weather, project delays, budget overruns, and scheduling conflicts between project teams. This can make these projects more prone to errors, omissions, and safety hazards.

In short, many things can go wrong. While every construction project comes with risks, the complexity of civil engineering projects makes them particularly vulnerable to loss and liability claims. The bigger the project, the higher the stakes — sometimes reaching millions of dollars.

While insurance can’t prevent issues like bad weather, it can help to protect your business by reducing risks when problems arise.

Common risks faced by civil builders

Civil and heavy builders face many of the same risks as residential or commercial builders — but often on a larger scale. Your project can be impacted by:

Fire or water damage, theft, and vandalism – Construction sites are vulnerable to unexpected damage and security threats.Equipment breakdown – Machinery failure at critical stages can cause costly delays.Contractors Equipment – Fire and theft of large equipment items (loaders, excavators, etc.) can impact projects.Supply chain disruptions – Delays in the delivery of materials can slow down progress.Regulatory approvals – Compliance with local and federal laws can delay project start times and extend project timelines.Weather conditions – Storms, floods, and extreme temperatures can halt construction.

Labour shortages: A growing concern

The construction industry is still struggling with a shortage of skilled workers. According to Statistics Canada, the job vacancy rate in the construction sector was 4.2 per cent in early 2024, higher than the national average of 3.6 per cent. This shortage is driven by an aging workforce and fewer skilled workers entering the industry.

Moreover, as Canada continues modernizing its infrastructure, builders face additional hurdles in their civil engineering projects like:

Public opposition: Big projects, like construction of new highways or dams, often face pushback from local communities, causing delays or even cancellations.Legislative and economic changes: Large scale projects are often government funded, and changes in the political and economic landscape can change their funding or focus. Environmental risks: Construction can impact the environment and human health, leading to stricter regulations and costly compliance measures.Frequent design changes: Stakeholders may request last-minute changes. This not only disrupts workflows but could also lead to safety and quality issues, especially, if various parties are rushing to accommodate an already tight timeline.

What type of insurance do civil builders need?

A contracting project involves many stakeholders, along with numerous risks, which can lead to unexpected costs. Construction and contractors insurance is designed to protect your construction project from these industry risks and financial losses, so you can get back to business as soon as possible. It provides coverage from the moment you start your project to the celebratory ribbon-cutting ceremony, helping safeguard your business from unexpected setbacks.

Your insurance needs will vary, depending on the type and scale of your project. While commercial general liability (CGL) insurance can provide a strong foundation by helping to protect you from third-party liability claims, a civil builders insurance policy could also include commercial property, commercial auto, business interruption, equipment breakdown, rental reimbursement, pollution, and cyber event coverage.

There are also several specialized coverages to consider:

Builder’s risk insurance: This coverage can help to insure construction contractors for their equipment, building materials, and temporary infrastructure against common perils such as fire or theft while a project is underway.Contractor’s equipment floater: This can help to replace damaged or stolen heavy equipment to prevent work disruptions.Loss of income coverage: This coverage will help to cover your lost revenue resulting from a work-related interruption.Environment impairment liability: This provides coverage for sudden or gradual pollution events that may arise from construction activities, helping manage cleanup costs and legal liabilities. Cyber liability: This coverage protects against data breaches, cyber attacks, and digital security threats that could impact your business operations or client information.Wrap-up liability insurance: Similar to CGL, but specific to construction projects, it is designed to protect construction contractors and subcontractors from third-party and general liability exposures, not just during the project, but for remedial work and completed operations.

Protect yourself and your business

Despite your best efforts, unexpected challenges can arise in any civil or heavy building project. The right insurance can help you stay prepared, minimize risks, and keep your business moving forward. Learn more by visiting our construction and contractors page today!