Executive Operational Summary
Standard CGL policies strictly exclude damage to customer property within your care, custody, or control. Mechanical, electrical, and installation contractors must obtain Riggers Liability or Installation Floaters to protect against losses during hoisting, assembly, and testing.
Statutory Standard
Common law bailment and contractual work conditions hold trade contractors to a high standard of care when handling client equipment, but standard liability policies specifically exclude the item worked on.
Policy & Underwriting Form Impact
If a contractor drops an expensive transformer during installation, standard CGL pays for damage to the client's building, but excludes the transformer itself under the CCC exclusion.
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01
The Context & Statutory Standard
This guide explains a recurring coverage question, not a market-wide policy change. Liability insurance and insurance for property being handled or installed can respond differently.
02
Who Is Affected in Ontario
Contractors storing, lifting, repairing or installing customer equipment and materials.
03
Verified Rules vs. Operational Uncertainties
Care, custody or control and work-related property exclusions depend on the issued policy. Damage to the item being worked on and damage to surrounding property must each be assessed; neither is automatically covered. No specific insurer wording has been verified for this guide.
04
Questions to Bring to Your Licensed Broker
Gather the liability policy, property or installation coverage, endorsements and customer contract. Identify whose property is involved, its value, where it is stored and when responsibility transfers.
05
Actionable Next Step for Field Supervisors
Describe one typical job to your broker, including transport, storage, lifting and testing. Ask for a written explanation tied to the actual policy clauses, limits and deductibles.
Site Foremen Compliance Checklist
Key job site actions to maintain standard-of-care defense under Ontario claim audits:
- 1 Identify high-value equipment handled, rigged, or stored on-site before commencing installation.
- 2 Attach a dedicated Installation Floater with limits matched to the highest replacement cost of any single unit.
- 3 Document pre-existing conditions with timestamped photographs before taking physical custody of customer equipment.
Precise Question for Your Licensed Broker
Does our policy include Riggers Liability and an Installation Floater with adequate limits for customer equipment during transit, hoisting, and final commissioning?
Frequently Asked Questions
Ontario Contractor Legal & Underwriting FAQs
Direct answers to common Ontario insurance and statutory compliance questions:
What is the Care, Custody, or Control exclusion?
The Care, Custody, or Control (CCC) exclusion in commercial general liability insurance excludes coverage for damage to personal property in the contractor's physical possession or under their direct charge.
How can Ontario mechanical contractors protect customer equipment during installation?
By securing an Installation Floater or Riggers Liability endorsement that specifically covers customer machinery during transit, loading, hoisting, placement, and preliminary testing.
Sources and scope
Read the current source and its applicable edition. A linked form or statute does not establish the terms of your policy. Publication here is not evidence of an individual broker sign-off.