CCDC 41 Insurance Requirements Explained
Many Ontario projects attach CCDC 41 to their contracts, and its limits are higher than what most small and mid sized contractors carry. Here is what it asks for and how to handle it before you bid.
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Quick answer
What are the CCDC 41 insurance requirements?
CCDC 41 is the standard Canadian document setting out insurance requirements for projects using CCDC construction contracts. The 2020 version calls for commercial general liability of at least $10 million per occurrence, automobile liability of $10 million, broad form property or builder's risk equal to 1.1 times the contract price, $5 million pollution liability where required, and all risks contractors equipment coverage, with maximum deductibles on some coverages. Owners can amend it, so always read the project version.
What CCDC 41 is
The Canadian Construction Documents Committee publishes standard contracts, such as CCDC 2 for stipulated price work, and CCDC 41, which sets the insurance the contractor must provide. The 2020 edition raised several limits compared with earlier versions.
CCDC 41 is a starting point. Owners and their lawyers often amend it with supplementary conditions, so the project's version may ask for more or less. Your job is to compare it with your current program and close the gaps before you sign.
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CCDC 41 (2020) key insurance requirements
A summary of the main requirements in the published 2020 version. Always confirm against the project documents.
| Coverage | CCDC 41 (2020) requirement |
|---|---|
| Commercial general liability | Not less than $10,000,000 per occurrence, with completed operations; maximum $10,000 deductible |
| Automobile liability | Not less than $10,000,000 inclusive per occurrence for owned or leased vehicles |
| Aircraft and watercraft liability | Not less than $10,000,000 per occurrence where used in the work |
| Unmanned aerial vehicles (drones) | Not less than $5,000,000 per occurrence where used |
| Broad form property or builder's risk | 1.1 times the contract price plus owner supplied products; maximum $10,000 deductible |
| Boiler and machinery | Replacement value of permanent or temporary boilers and pressure vessels |
| Contractors equipment | All risks coverage acceptable to the owner, with subrogation against the owner waived |
| Contractor's pollution liability | Not less than $5,000,000 per occurrence where required |
Summary based on the published CCDC 41 (2020) document. Supplementary conditions on your project may change these requirements.
How to handle CCDC 41 before you bid
Compare it with your program
Send the project's insurance requirements to your broker with the tender. Most contractors meet the higher liability limits with an umbrella or excess policy, which can be added for the project or the year.
- Umbrella or excess for higher limits
- Check deductibles against the maximums
- Confirm completed operations terms
Price it into the job
Builder's risk, higher limits and pollution coverage cost money. Get indications early and include them in your bid so a winning price does not become a losing project.
- Builder's risk at 1.1 times contract price
- Project specific pollution cover
- Ask the owner if they are buying any coverage
Get your CCDC requirements reviewed
Send us the insurance section of your next contract and we will connect you with a licensed Ontario broker who can compare it against your program and quote the gaps.
See also general contractor insurance and builder's risk.
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CCDC 41 FAQs
What CGL limit does CCDC 41 require?
The 2020 version requires commercial general liability of not less than $10,000,000 per occurrence, with completed operations coverage. Project supplementary conditions can change this.
Can a smaller contractor meet CCDC 41 limits?
Usually, by adding an umbrella or excess liability policy on top of their CGL and auto. A broker can quote it for the project or for the year.
Does CCDC 41 require builder's risk?
Yes. It requires broad form property or builder's risk coverage of 1.1 times the contract price plus the value of owner supplied products, unless the contract assigns it elsewhere.
Can the owner change CCDC 41?
Yes. Owners often amend CCDC 41 through supplementary conditions. Always read the version attached to your project.
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