What should I look for in a renovation contractor's insurance in NB?

Every legitimate renovation contractor in New Brunswick must carry both general liability insurance and WorkSafeNB coverage — these are non-negotiable requirements that protect you from significant financial liability.

When evaluating a contractor's insurance, start with WorkSafeNB coverage verification. This is provincial law in New Brunswick, not optional. Request the contractor's current WorkSafeNB clearance letter before signing any contract. This coverage protects you from personal liability if a worker is injured on your property during the renovation. If a contractor cannot provide this documentation immediately, it's a major red flag. Hiring an uninsured contractor exposes you to potentially devastating liability for workplace injuries — medical costs, lost wages, and legal fees that could reach hundreds of thousands of dollars.

General liability insurance should carry minimum coverage of $2 million, though many reputable NB contractors carry $5 million or more. This coverage protects you if the contractor damages your property, a neighbour's property, or if someone is injured due to the contractor's work. For example, if a contractor accidentally damages your hardwood floors while moving materials, or if their work causes water damage to your neighbour's basement, general liability insurance covers these costs. Request a certificate of insurance directly from the contractor's insurance company — never accept just a business card or verbal assurance.

For larger renovations involving structural work, additions, or whole-home projects, look for contractors who carry builder's risk insurance or can add your project to their coverage. This protects the work in progress from weather damage, theft, or vandalism during construction. Given New Brunswick's harsh weather conditions — spring storms, summer humidity, and early winter freezes — this coverage becomes especially important for projects extending into multiple seasons.

Verify coverage is current and adequate for your project scope. A contractor doing a $15,000 bathroom renovation needs different coverage limits than one tackling a $150,000 addition. The insurance should specifically cover the type of work being performed — some policies exclude certain activities like roofing, structural modifications, or work above certain heights. Ask to see the actual policy declarations page, not just a certificate, for major projects.

Check for gaps in coverage that could leave you exposed. Some contractors carry insurance that excludes water damage, mould remediation, or work on homes built before certain dates. In New Brunswick's moisture-prone climate, water damage exclusions are particularly problematic. Similarly, many older NB homes contain materials like asbestos or lead paint that require specialized handling — ensure the contractor's insurance covers these situations.

Contact the insurance company directly to verify coverage is active and in good standing. Insurance certificates can be outdated or fraudulent. A quick phone call to the insurer confirms the policy is current, the coverage limits are accurate, and there are no outstanding claims that might affect the contractor's ability to complete your project.

For electrical, plumbing, or gas work, verify the contractor holds appropriate TSANB licenses in addition to insurance. Technical Safety Authority of New Brunswick licensing is mandatory for these trades, and their insurance should specifically cover the licensed work they're performing. A general contractor's insurance may not cover electrical work performed by an unlicensed subcontractor.

Document everything before work begins. Take photos of your property's current condition and keep copies of all insurance certificates and WorkSafeNB clearances in your project file. This documentation becomes crucial if you need to file a claim later.

Remember that the cheapest contractor often cuts costs by skipping insurance coverage. A contractor who seems expensive may actually provide better value when you factor in proper insurance protection. The few hundred dollars saved by hiring an uninsured contractor can cost you tens of thousands if something goes wrong.

Need help finding properly insured renovation contractors in your area? New Brunswick Renovations can connect you with local professionals who carry appropriate coverage for your project.

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Looking for experienced contractors? The New Brunswick Construction Network connects homeowners with qualified professionals:

• Thirty Four Renovations
• Gionetterenovations