Your industry in focus

We know that you’re on a tight schedule and you’re juggling a lot of different priorities, like suppliers, workers, sub-trades and clients, plus you’re arranging permits, materials and inspections. You need an insurer that knows how to get down into the details. We can cover all your essential construction risks and then look at the project specifics to understand your individual risk exposures. Whether you need protection for potential faulty materials, a fire, or shipment delays with foreign suppliers, we can address your risks and challenges with coverages for your unique needs. In your industry, you need to be experienced, fast and agile. That sounds a lot like the experience of working with Sovereign.

Targeting:

Mid to large sized construction firms

Specialty contractors

Specializing in:
  • Construction projects including new commercial/industrial construction and residential high-rise
  • Infrastructure projects including road, sewer and watermain, and bridges
  • Commercial renovation contractors
  • Millwrights
  • Mechanical contractors
  • Oil field service contractors
  • Subtrades

What Sovereign’s construction solutions offer:

We're known for our quick turnaround times, so go ahead, bid on those last-minute projects. Our experts know the business and are empowered to make quick decisions to protect you when you need it. Whether you’re a specialty contractor providing your particular expertise, a company building an addition, or you’re building a brand-new office tower, we can help lower your risk exposures with coverage that makes sense for your project.

We can develop a solution for:

  • Property, including Inland Marine
  • Liability
  • Equipment Breakdown
  • Surety
  • Automobile
  • Technology and Cyber
  • Crime

Coverages designed to protect your business

We tailor our coverage limits and deductibles to address the exposures faced by your business – from insuring your entire operation to a specific construction project. Some of the key coverages we provide for the construction industry include:


Contractor's Equipment

Contractor's Equipment

Coverage snapshot

You’ve got the right tool for every job - from hand tools to power tools, compressors, generators, and even large equipment like backhoes, excavators, cranes and specialized equipment. Whether in your yard, on a work site or in transit, Contractor’s Equipment provides coverage for tools and larger pieces of equipment against many exposures, including theft, fire and upset at job sites or in transit.


Imagine a scenario where...

An excavator on your jobsite topples over into the hole it’s digging. Contractor's Equipment helps by covering the cost to repair or replace your excavator and get your buckets back in the ground.

Rented Leased Equipment

Rented Leased Equipment

Coverage snapshot

Business is good. You need more equipment than anticipated to get the job done, so you rent equipment for your workers. Now you need to be covered for possible risks to the rented equipment. Rented Leased Equipment provides coverage for loss or damage to unscheduled contractors’ equipment while leased or rented from others.

 

Imagine a scenario where...

You have three concurrent projects underway and you need to rent an additional excavator and backhoe to keep all the work on schedule. In most cases, the terms of your rental or lease agreement will require you to insure this equipment. This coverage insures those pieces of equipment while in your care and custody.

Rental Reimbursement

Rental Reimbursement

Coverage snapshot

When you’re working within tight timelines, you can’t afford for your equipment to be sidelined by a claim. Rental Reimbursement provides coverage to assist in paying for the cost of renting similar equipment while yours is in the shop being repaired as a result of damage from an insured loss.

 

Imagine a scenario where...

One of your backhoes catches fire and has to go to the shop for repairs. You can’t delay the project, but your other backhoe is in use at another job site, so you need to rent one. That’s an additional expense that you didn’t expect. Rental Reimbursement coverage ensures you avoid downtime and are reimbursed for the cost to rent a piece of replacement equipment.

Ice and Muskeg

Ice and Muskeg

Coverage snapshot

Sometimes you find yourself on shaky, slippery or sinking ground. Soft soil conditions such as muskeg and swamp can cause your equipment to get stuck in the mud. And when breaking through ice, your tools could become damaged or fall through. This kind of incident isn’t covered under a standard Contractors Equipment form. Ice and Muskeg provides coverage for contractor’s equipment damaged as a result of sinking in soft soil conditions such as muskeg and swamp or breaking through ice.

 

Imagine a scenario where...

While working on a job site your bulldozer gets stuck, sinking into a boggy patch of land. The mud and water oozes into the engine so it won't start. Ice and Muskeg extension protection can cover some or all of the costs to repair or replace this equipment.

Installation Floater

Installation Floater

Coverage snapshot

You've got materials on the job site ready to be installed – it’s important they’re protected. In the course of repair, completion, erection or improvement of a property there's always the risk of your materials being lost or damaged by a number of perils. An Installation Floater provides coverage for loss or damage to materials and supplies that form part of an installation project.

 

Imagine a scenario where...

You’re a contractor involved in the installation of new machinery. Overnight, someone has broken into one of your customer’s properties and vandalized the job site, damaging the machinery and stealing copper wiring and piping. Without an Installation Floater you may have to have to bear the cost of repairing and replacing the damaged and stolen property.

Builders Risk

Builders Risk

Coverage snapshot

Whether you're building an office building, condominiums, or industrial and commercial buildings – or even if you're erecting or installing free-standing structures such as communication towers – you need coverage throughout the course of construction. A Builders Risk policy provides coverage for the project itself, as well as most of the materials and supplies needed to complete the project including coverage for landscaping, trees, plants and shrubs, and all ancillary buildings, scaffolding, falsework, forms hoardings, excavation and site servicing that are integral to the job.


Imagine a scenario where...

During the construction of a three-storey building, sparks from a welder’s torch start a fire and the entire third floor and roof are destroyed. The second and first floors are also heavily damaged by the water used to fight the fire. A Builders Risk policy can cover the cost to repair, replace or reconstruct the property including the damage caused by the water used to fight the fire.

Equipment Breakdown (Course of Construction)

Equipment Breakdown (Course of Construction)

Coverage snapshot

Your construction project isn’t quite complete until your testing is a success. Course of Construction Equipment Breakdown complements your Builders Risk policy by providing coverage for the testing and commissioning of new equipment that has been installed.

 

Imagine a scenario where...

During the process of construction you installed key equipment, like: electrical, heating, air conditioning, generators and transformers. Now, you’re ready to start testing to make sure everything operates properly. As you test the equipment, a breakdown occurs. You now have to fix the equipment, which could delay the project. A Course of Construction Equipment Breakdown policy can cover these components while also making sure that equipment already in operation is insured.

Soft Costs

Soft Costs

Coverage snapshot

Your construction project has suffered a loss. Now, miscellaneous costs you didn’t expect are starting to add up. Soft Costs provides coverage for certain additional expenses incurred as a result of a covered loss, such as: architect or engineering fees related to repairs, extra fees for added interest charged by lenders, costs related to re-financing, building permits and advertising expenses.

 

Imagine a scenario where...

Your project has suffered water damage that delays the completion of construction. Additional repairs and some reconstruction are required and, as a result, you incur additional costs including loan interest and financing expenses. Plus, you might also have to pay additional property taxes, legal fees, architect fees or building permit costs during the extended period of time it’s going to take to complete the project. Soft Costs can cover these expenses.

 

Delayed Start Up

Delayed Start Up

Coverage snapshot

Even when a loss on a project is covered, it can still throw a wrench into your timelines and impact your future earnings. Delayed Startup coverage protects owners or stakeholders of the insurance placed on a construction project against the potential loss of anticipated income if a covered loss causes a delay in the completion of the project.

 

Imagine a scenario where...

You’re the owner of a construction project and a fire causes a delay in the completion of your building. As a result, your new tenant is unable to take occupancy on their projected move-in date and they don’t begin to pay you the rental income that you were anticipating. By purchasing Delayed Start Up coverage, along with the coverage for your construction project, you can be protected against this loss of revenue.

 

Removal and Replacement of Defective Products

Removal and Replacement of Defective Products

Coverage snapshot

You stand by the quality and integrity of your work, but defects and deficiencies can be out of your control. Removal and Replacement of Defective Products can protect your budget from costs to remove and replace your work if it fails to meet certain specifications due to a defect or deficiency.

 

Imagine a scenario where...

During construction of a large industrial building, the roof joists are deemed defective and inadequate to support the weight of the roof, which could lead to a collapse. As a result, the joists need to be removed and replaced with properly designed joists of adequate strength. Without this coverage, the costs involved in removing and replacing the roof joists would be left to the contractor.

Contractors Specification Expense

Contractors Specification Expense

Coverage snapshot

No matter how clear construction plans may be, they could be misread. If you make a mistake adhering to written specifications of a contract issued by your customers, this coverage can help with costs to correct these errors.

 

Imagine a scenario where...

You‘ve been hired to build a new computer server room in your customer's building. All the specifications are provided. When completed, it’s discovered you misread the specifications and built the room too small. The customer won’t be able to fit all of their servers in the room so it needs to be rebuilt. Without this coverage, it’s on you to foot the bill to rebuild.

Wrap Up Liability

Wrap Up Liability

Coverage snapshot

As the General Contractor or owner of a large construction project, you want protection that gives you peace of mind knowing that everyone involved is properly insured. A Wrap Up policy makes it easier to make sure that all of the contractors and subcontractors working on the project are covered, and it helps you avoid disputes between policies and insurers when more than one contractor is involved in a loss. The Wrap Up policy also guarantees that liability coverage for everyone involved will remain in place for a period of 12, 24 or 36 months - as specified - after the project has been completed.

 

Imagine a scenario where...

Some building materials fall from one of the upper floors of your construction project injuring passers-by below. It’s unclear which contractor on your job site is responsible but with Wrap Up Liability it doesn’t matter as everyone involved in the project is covered.

Contingent Wrap Up Liability including Difference in Conditions and Difference in Deductible

Contingent Wrap Up Liability including Difference in Conditions and Difference in Deductible

Coverage snapshot

Sometimes you need extra protection. This coverage protects against any gaps in coverage between a contractor’s liability policy and the Wrap Up Liability policy if coverage under the Wrap Up policy is more restrictive. This coverage also pays the difference when the deductible under the Wrap Up policy is higher than the deductible on a contractor’s own Liability policy.

 

Imagine a scenario where...

You’re a contractor involved in the construction of a new office building. Your work on the project involves shoring of the excavation site to support the sides of the excavation. The shoring fails and one side of the excavation collapses, causing the foundation of the neighbouring building to shift. This results in significant structural damage, and you’re deemed responsible. The Wrap Up policy that includes coverage for your work provides a limit of liability of $5,000,000 and contains a $25,000 deductible. The claim, however, is estimated to be as much as $6,000,000. With this endorsement on your own policy, the $1,000,000 difference between the claim and the Wrap Up policy limit is covered. Your own policy also contains a $5,000 deductible. Having this coverage means that you would not have to pay the larger deductible that exists under the Wrap Up policy as it will pay the difference between the two.

Contract Surety

Contract Surety

Coverage Snapshot

As a contractor, you’re likely to bid on a contract that requires (or prefers you have) performance security, such as: Bid Bonds, Performance Bonds, Labour & Material Payment Bonds. That’s because performance security guarantees to your client that you’ll enter into the contract (should it be awarded to you), perform the contract per its terms, and pay your suppliers or subtrades capital they’re contractually owed.

 

Imagine a scenario where…

You’re a contractor who wants to be awarded a lucrative construction project. However, you don’t have access to bonding or adequate bonding capacity to bid on the project and have it awarded. We can assess your qualifications by performing a detailed credit analysis to quickly prequalify you for the required bonds so you can compete for that project.

Residential Surety

Residential Surety

Coverage Snapshot

Condominium legislation requires that every purchaser’s deposit money must go into a designated trust account. A Sovereign Bond allows you to have access to the money, held in trust under condominium legislation, to help fund your project while protecting the interests of the purchasers. Deposit Protection Insurance, as well as required new home warranty bonds, insures and protects purchaser deposits in the event of a project cancellation or development failure that prevents the developer from delivering purchasers title to their new homes.

 

Imagine a scenario where…

You’re a developer looking to build a condominium. But before you can get your shovels in the ground, you must deliver the necessary new home warranty security so you can begin selling your project and accessing the deposits collected by purchasers to fund the build. After our detailed analysis and prequalification, we can provide the bond and insurance on a cost-effective basis to meet a warranty provider’s requirements and allow the release of deposit funds from trust to be used as a source of construction financing.

To give you the best possible experience, we use cookies on our website. Read our Privacy Policy to learn more.