If you’re a contractor in Mississauga or Toronto, insurance isn’t just a good idea—it’s often a legal requirement. Whether you’re building homes, running electrical, or handling renovations, the right insurance coverage protects your business, clients, and reputation.

As a local Ontario insurance broker, I’ve seen how costly small mistakes can be without proper coverage. Let’s break down what’s legally required and what’s smart to have to keep your contracting business compliant and secure.

What Insurance Is Legally Required for Contractors in Ontario?

Workplace Safety and Insurance Board (WSIB) Coverage
Almost all contractors in Ontario must register with the WSIB. This provides workers with financial protection if they’re injured on the job. Without WSIB coverage, you risk legal penalties and liability for workplace injuries.
Learn more on the official WSIB site: www.wsib.ca
Commercial General Liability (CGL) Insurance
While not always legally mandated, most clients, municipalities, and job contracts in Mississauga and Toronto require proof of liability insurance. CGL covers property damage, bodily injury, and legal expenses—critical for any contractor working under contract or bid.
Commercial Auto Insurance
If you use vehicles for work—transporting materials, tools, or crew—personal auto insurance won’t cut it. Ontario law requires vehicles used for business purposes to carry commercial auto insurance for proper liability protection.
Contractor’s Tools & Equipment Coverage
Though not a legal must, this coverage is essential. Construction tools and heavy equipment are high-value targets for theft and damage, especially around GTA job sites.

Additional Recommended Coverages

Professional Liability (Errors & Omissions): Protects against financial losses due to design or consulting errors.
Builder’s Risk Insurance: Covers ongoing projects from fire, vandalism, or unexpected weather damage.
Surety Bonds: Required for public contracts and large-scale projects to prove your reliability.

These policies aren’t just for peace of mind—they help keep your company competitive when bidding on municipal and private projects in Mississauga and Toronto.

FAQs about Contractor Insurance in Ontario

1. Is WSIB registration mandatory for all contractors?
Yes, most in construction-related fields must register. Some exceptions apply, but penalties for noncompliance can be steep.

2. How much liability insurance do I need?
In the GTA, most contracts require at least $2 million in general liability coverage—some larger projects demand more.

3. Can I get a single policy package for all my contractor insurance needs?
Absolutely. A custom contractor bundle (CGL, tools, commercial auto, etc.) simplifies coverage management and often reduces premiums.

4. How can local brokers help?
Working with a Mississauga-based insurance broker gives you access to Ontario-specific expertise and insurers that understand local requirements—saving time, money, and stress.