Contractors Who Use Subcontractors: ALIGNED’s Subcontractor Insurance Solution

ALIGNED’s Solution: Yes, 100% Subcontractor Use Is Accepted

• Insured Subcontractors Allowed (Up to 100%): Whether you subcontract 30%, 60%, or even 100% of your work, it’s no problem. Our policy accepts high subcontractor usage across all classes of contractors. You simply need to ensure each sub-contractor carries liability coverage equal or higher than your policy’s limits (for example, if you carry $2M General Liability, your subs should carry $2M as well). This ensures alignment of coverage and protects you in the event of a claim involving a subcontractor’s work.
• No New Venture Too Small: Are you a new contractor starting out? Or an established contractor taking on a new type of project? New ventures are welcome. Our solution doesn’t require you to have years of prior insurance history. Even if your business is newly established, you can get coverage from day one
• Multi-Trade Operations on One Policy: Many contractors wear multiple hats or take on diverse projects. Our platform allows multiple operations under a single policy – for instance, if you do painting, minor carpentry, and flooring, you can list all those services. The rating adjusts proportionally based on the mix of your operations. You don’t need separate policies for each trade; this saves money and simplifies your life.
• Broad Appetite (Few Exclusions): Our program is designed to cover a wide range of contractor classes. Residential and commercial work are both accepted.
• Interior and exterior projects are fine. We even accept contractors doing jobs across provincial lines or taking on U.S. projects (except Quebec and some territories) – something many insurers won’t do. In fact, cross-border coverage is available for Canadian contractors who might have an odd job in the U.S., subject to underwriting guidelines. The bottom line: whether you’re a handyman, a renovations contractor, a home improvement contractor, or a general contractor focusing on remodels, you’ll find a receptive insurance option here.

Note: There are a few high-risk activities that may require special consideration or a different insurance solution. For example, if you’re doing entirely new building construction from the ground up, extremely hazardous work like roofing above three stories, or industrial projects like bridge construction or major excavation, those might fall outside this particular program’s appetite. Don’t worry – ALIGNED can still help find coverage for those cases through other markets as we do the shopping around for you! But for the vast majority of common contractor jobs (remodeling, renovations, installations, repairs, maintenance, etc.), our 100% subcontractor-friendly solution has you covered.

Features & Benefits of ALIGNED’s Contractor Insurance Program

• Comprehensive General Liability Coverage: Protects against bodily injury or property damage claims arising from your contracting work. High limits available – policies can provide $5 Million in Commercial General Liability (CGL) or more, which is often required for commercial jobs. This coverage stays in force even if subcontractors cause the damage, as long as they have their own insurance too.
• Tool, Equipment, and Installation Coverage: Contractors need more than just liability insurance. Our solution can bundle in coverage for your gear. For example, you can insure your contractors’ equipment (e.g. ladders, power tools, machinery), your small tools, as well as materials in-transit or installation floater coverage for items you’re installing on a job site. If you rely on specialized equipment or transport materials to site, this ensures you’re protected in case of theft, damage, or loss.
• Blanket Additional Insured & Waiver of Subrogation: We know many contractors have to add clients or project owners as additional insureds, and provide waivers. Our policies automatically include a Blanket Additional Insured (AI) endorsement and Waiver of Subrogation (WOS) in the general liability coverage. That means you can satisfy common contract requirements without extra hassle or fees. It’s built-in peace of mind for you and your clients.
• Fast, No-Hassle Underwriting: Speed matters when you’re trying to close a deal or start a project. Our contractor program is enabled by a streamlined online platform. You or your broker can get a quote, issue the policy, and bind coverage online in minutes. There are no underwriting holds for standard cases – meaning you won’t be stuck waiting days for an underwriter’s approval on most submissions. The system instantly evaluates your application and provides a bindable quote without back-and-forth, as long as the risk fits the program guidelines. This is extremely convenient compared to traditional insurance processes.
• Same-Day Coverage & 60-Day Quote Validity: Need coverage to start today? No problem – you can set the policy to be effective the same day you bind, even if that’s today’s date. Additionally, quotes are typically valid for 60 days. This gives you the flexibility to lock in a quote and present it to your client or compare with other options, knowing that you have roughly two months to decide. That 60-day window is great for contractors shopping around renewal time or coordinating with project schedules.
• Interprovincial and U.S. Exposure Covered: As mentioned, the policy can cover you for work done in multiple provinces and even the United States (excluding certain regions like Quebec and the territories). For example, if you’re an Ontario-based contractor taking an odd job in the U.S. or expanding to another province, you don’t need a separate policy. This kind of flexibility is not common with many small-business insurers and can be a major benefit if your work isn’t confined to one locale.
• Competitive Premiums for Hard-to-Place Risks: Even with these expansive features, the rates are very competitive – often beating traditional insurers that do quote sub-heavy contractors. Because the program is designed for contractors with subcontractors, you’re not paying an inflated price for forcing a square peg into a round hole. In fact, by pooling similar businesses, this solution often yields affordable premiums for the coverage provided. For instance, we recently bound a policy for a renovation contractor doing 85% of its work via subcontractors (with $1.2 million in revenue and two employees) at $6,665 annual premium – a rate that included $5M liability plus tools and equipment coverage. Another client, a flooring installer subbing out 90% of jobs, obtained a $5M liability policy plus equipment coverage for $2,717 for the year. These real-world cases show that even high-subcontractor operations can get great coverage at a reasonable cost.

Contractors of All Types Can Benefit

• General Contractors & Home Renovation Companies: If you manage renovation or remodeling projects, you might bring in plumbers, electricians, drywallers, etc., to handle portions of the work. Whether you swing a hammer yourself or strictly manage subs, you’ll be covered. (Note: General contractors who do new home construction from scratch may need a different policy, but if your focus is renovations, additions, or remodels, this is a perfect fit.)
• Handymen and Remodelers: Small contractors who perform a variety of odd jobs or remodeling tasks often subcontract specialized portions (like electrical or roofing) when needed. This policy is flexible enough for the jack-of-all-trades who occasionally needs to hire help. Plus, even if you’re a one-person operation (no direct employees), you’re eligible – in fact, our example above with a Handyman business grossing $149,000 and no employees was easily covered and saved the owner from needing separate tool insurance.
• Trade Contractors Who Subcontract: Maybe you’re a electrical contractor or HVAC installer who sometimes subs out part of the work (e.g., you subcontract the ductwork fabrication or trenching). Or a landscaping contractor who subs out tree removal or design work. As long as your subs are insured, you won’t have coverage gaps.
• Painting Contractors, Flooring Installers, Roofers (within guidelines): We insure painters and flooring contractors routinely – even if they subcontract labor for large jobs. For roofing, certain limitations apply (e.g. no structural builds over 3 stories), but roofing contractors focusing on smaller projects or subcontracting out high-risk portions can still find coverage. The program’s appetite is quite broad – if in doubt, ask ALIGNED! Chances are we have a solution or can find one.
• Construction Project Managers and Consultants: Maybe you don’t swing a hammer at all, but act as a project manager who hires subcontractors to do 100% of the field work. You still need liability insurance (in case you’re sued for negligence in supervision). This program can cover you similarly to a general contractor who subcontracts everything out. It’s essentially the same risk profile – and we’re happy to cover it.

Why Choose ALIGNED for Your Contractor Insurance

• Expert Advice: Our brokers understand construction. We can advise you on coverage limits, contract requirements, risk management (like making sure you get certificates of insurance from subs), and more. You get more than a policy – you get a risk management partner.
• Access to Specialized Markets: The 100% subcontractor-okay program is just one of many. As an insurance broker with a national footprint, ALIGNED has access to niche insurers and underwriting facilities. If your business has unique facets, we’ll find the right insurer – whether it’s this program or an alternative. We do the shopping for you.
• Nationwide Reach, Local Touch: ALIGNED is proud to be Canadian-owned and serving clients coast-to-coast. From major cities to smaller towns, we help contractors across provinces get covered. Our presence in Toronto, Calgary, Vancouver and a national operations centre in Cambridge means we’ve got Canada covered. Yet, we treat every client like a neighbour. You get personal service, quickly.
• Fast and Convenient Service: We leverage technology like the Foxden platform (our digital quoting tool) to get you insured fast, but you also have the comfort of a dedicated human broker to answer questions. It’s truly the best of both worlds: digital speed with human support. You can handle much of the process online if you prefer, or talk to us for guidance – whatever works for you.
• Claims Support and Advocacy: If you ever have to file a claim, ALIGNED will be by your side to guide you through it. We help communicate with the insurer and speed up resolutions, so you’re not left alone to deal with a complex claim situation. Our motto is to deliver business insurance and risk management solutions that actually align with your needs – and that includes when things go wrong.

Get a Quote and Get ALIGNED Today!