What insurance should a contractor carry in New Brunswick?

New Brunswick contractors need comprehensive insurance coverage to protect both their business and their clients. The specific requirements vary by trade and project scope, but certain coverages are essential across the board.

WorkSafeNB coverage is mandatory for any contractor with three or more workers (full-time, part-time, or casual). This isn't optional — it's legally required workplace injury insurance. Contractors with fewer than three workers can register voluntarily, but if they don't, the homeowner may become liable for their coverage. Always verify a contractor's WorkSafeNB clearance certificate before work begins by calling 1-800-999-9775 or checking online at worksafenb.ca.

General liability insurance should carry minimum coverage of $2 million, though many contractors opt for $5 million. This protects against property damage, bodily injury, and completed operations claims. If a contractor's work causes water damage to your home or someone gets injured on the job site, this coverage responds. Most homeowner policies won't cover contractor-caused damage, making this protection crucial.

For electrical, plumbing, and gas contractors, professional liability insurance becomes particularly important. These trades face higher exposure due to the technical nature of their work and potential for significant property damage. The NB Department of Justice and Public Safety — Technical Inspection Services requires these contractors to hold valid licenses, but insurance provides an additional layer of protection beyond regulatory compliance.

Commercial vehicle insurance is essential for any contractor using vehicles for business purposes. Personal auto policies typically exclude commercial use, leaving contractors exposed during work-related driving. This coverage should include tools and equipment coverage, as contractor vehicles often carry thousands of dollars in specialized equipment.

Bonding requirements vary by project type and client. While not insurance per se, surety bonds guarantee project completion and payment to subcontractors. Large commercial projects and some municipal work require bonding, though most residential renovations don't mandate it.

Tools and equipment coverage protects against theft, which unfortunately remains common in the construction industry. Many contractors carry $50,000+ in specialized tools, making this coverage financially critical. Standard business property policies may not adequately cover tools stored in vehicles or at job sites.

When hiring contractors, request certificates of insurance showing current coverage. Reputable contractors readily provide this documentation and often carry coverage exceeding minimum requirements. Be wary of contractors who can't produce current insurance certificates — this often indicates either inadequate coverage or lapsed policies.

The Construction Remedies Act (SNB 2020, c.29) provides some protection through lien rights, but insurance remains your primary safeguard against contractor-related losses. Quality contractors view comprehensive insurance as a business necessity, not an optional expense.

Find verified, properly insured contractors in our New Brunswick directory who understand these coverage requirements and maintain appropriate protection for their clients' peace of mind.