Canadian Construction Makes a Comeback

Jun 2021

The pandemic has been hard on many industries, and the construction industry is no exception. However, according to recent forecasts, Canada’s construction industry is expected to have sharp growth over the next year, followed by continual growth over the remaining ten-year forecast period. This article will further detail the forecasted rebound and the risks specific to trade contractors.


So, what exactly is a Trade Contractor? A trade contractor is a type of subcontractor, contracted directly by the client themselves rather than by the construction manager. They specialize in specific parts of a construction project like electrical work, plumbing, pouring concrete painting, site preparation, and other activities performed in construction. (1)


2021 Rebounds in the Construction Industry


After a decline of 3.4% in 2020 resulting from the COVID-19 pandemic, Canada’s construction industry is expected to grow by .6% in 2021. In fact, the industry is recovering faster than previous forecasts had indicated, according to a labour market forecast released by BuildForce Canada in April of this year. This is up from a previous forecast of -.2%. (2)


This is all likely due to the government provisions and stimulus, the recovery in consumer and business confidence, the global demand for Canadian exports, and the lifting of restrictions on international travel, along with the rollout of the COVID-19 vaccines.


According to a Research and Markets report, throughout the remainder of the forecast period, the industry is expected to expand by 2.8%, aided by the government’s efforts to accelerate its long-term infrastructure plan (the “Investing in Canada Plan”) and revive the economy. (3)


Liability Exposures and Risks – This policy does not cover the liability of the GC this only provides Premises Liability on the location – GC MUST carry their own coverage or the insured if acting as GC must request Liability certificates from each sub trade

● Trade Contractors are subject to a myriad of complex exposures such as:

○ Damage to property due to failure properly install something (e.g. flooding caused by improperly installed plumbing at a construction site)

○ Accidents caused by hazards on the premise that have not been identified

○ Environmental pollutants released from chemical spills

○ Accidents because of failure to follow safety protocols or requirements

○ Bodily injury (e.g. a roofer taking a fall while on the job)

● Besides the risk of injury to a subcontractor, a mishap can incur expensive damages, such as lost business, repairs, or medical payments just to name a few.


SWG CONSTRUCT Construction Insurance


SWG CONSTRUCT Construction Insurance is specifically designed to protect the fixtures and/or equipment being used in a renovation or construction project. It covers a person’s or organization’s insurable interests should those items sustain physical loss or damage from a covered cause.


Builder’s risk insurance is typically bought by the owner of the building or land. Occasionally, if it is stated as a requirement in the contract, the general contractor will secure the Builders Risk policy for the building or landowner.


Depending on the size of the construction or renovation project, these policies can be made either on an annual basis or on shorter terms, such as three, six, and nine months. For example, a construction project on a small single-family home can be completed within a three to six-month period, whereas a larger construction project on a row-house complex can take up to two years.


This policy must be in place at the first sign of exposure, which may include simple site preparation, demolition at the site, or as required by the involved parties, such as financiers. Keep in mind that many insurance companies no longer offer builders risk coverage if the construction has already commenced, even if it is just the foundation.


Coverage Highlights:

● Our policies are on broad-form basis

● Policies automatically include cover for theft of unfixed building materials for a limit of $40,000

● Cover existing structures as well as the insurable interest of the renovation

● Soft cost (%)

● In-transit coverage is available

● Landscaping, growing trees, plants, shrubs or flowers all to enter into and form part of the project provided that the value of such property is included in the amount of insurance

● Temporary buildings, scaffolding, falsework, forms, hoardings, excavation, site preparation, and similar work, provided that the value thereof is included in the amount insured and then only to the extent that “replacement” or restoration is necessary to complete the project

● Deductibles start at $1,000 and can be customized based on size and value of the construction

● Policies can be customized to allow for shorter periods of construction and can be extended, where required, to provide additional time for completion to a maximum of 18 months

We Cover:

● Course-of-Construction

● Renovations/Additions

For more information, visit our product page at


Content is current as of the date of broadcast and is subject to change without notice.