Supporting the City Set on an Island
Montreal is the largest city in the Canadian province of Quebec. It is both the second-largest city and the second-largest metropolitan area in the country with populations of 1,762,949 and 4,291,732, respectively. Historically, Montreal has been a national centre for major industries, including aerospace, commerce, design, entertainment, fashion, finance, food, pharmaceuticals, transportation and world affairs. The built environment is a critical component of the city’s history and future.
Montreal is located on an island of the same name. Given its proximity to the water and lowest elevation of 6 metres, heavy rainfall events can lead to flooding in parts of the city, presenting a significant risk to contractors that do not have construction insurance in Montreal.
To connect to the mainland, there are 28 bridges and tunnels in and out of Montreal. These facilities carry vehicular traffic, pedestrians and bicycles, freight rail and transit. Bridge and tunnel construction and maintenance are critical to life as a Montrealer. These major infrastructure elements are necessary for commutes, tourism and the delivery of goods. Insured contractors and other construction professionals that can deliver the city’s infrastructure needs are crucial to the city’s future.
Exploring the Need for Construction Insurance in Montreal
Every business needs insurance products to address risks and exposures in their industry. When you think of the types of hazards commonly found in construction zones, it’s clear that your business needs coverage, but exactly what type of construction insurance in Montreal should you purchase? It may be helpful to develop a risk management strategy that addresses these operational areas:
- Day-to-day work or regular project activities
- Equipment, tools and unfinished projects
- Physical and digital assets owned by your company
Mitigating Operational Exposures
Consider the following coverages for operational exposures in construction work:
- General Liability: Covers claims related to third-party injuries or people that don’t work for your firm, such as the traveling public or an inspector from the Société de transport de Montréal
- Professional Liability: Covers claims and damages due to errors, omissions or negligence in delivering work product
- Pollution Liability: Addresses damages related to accidental pollution due to construction activities, such as waste leaching into a body of water or sewer system
Protecting Projects Under Construction
The right construction insurance in Montreal also mitigates the risks associated with unfinished or ongoing projects. For example, if you were working on a project for the Pierre Elliott Trudeau International Airport, you “own” the work until your client formally accepts the job as complete. Check out these coverages:
- Builder’s Risk: Covers losses or damages to ongoing projects and includes cases of theft, vandalism or weather events
- Inland Marine: Protects equipment and materials that are damaged or lost while in transit
- Equipment Floater: Covers for damages to equipment and tools while in transit between multiple sites
Construction companies usually must guarantee that they fulfill their contractual obligations at no loss to the client or owner. This is often a requirement with certain governmental contracts. What happens if your company goes out of business or experiences a catastrophic loss that prevents you from completing your contracts? Contract surety bonds are a type of insurance protection that covers contractors and their contracts in the following ways:
- Bid bonds: Guarantees that a contractor will enter into a contract if awarded a bid
- Maintenance bonds: Guarantees that a contractor will make repairs and upkeep for a specific time frame or a dollar value
- Payment bonds: Guarantees that a contractor will make payments, especially to subcontractors, vendors or suppliers
- Performance bonds: Guarantees that a contractor will perform the scope of work defined in a contract or work authorization
Covering Your Assets
A complete insurance plan should address the assets you own:
- Commercial Property: Protects against losses from damage to properties and equipment that you own
- Commercial Auto: Covers operation of company-owned vehicles
- Cyber Insurance: Addresses data breaches and losses due to cybersecurity attacks
Learn more about HUB’s construction insurance offerings!