Did you know that CCDC compliance is a critical step toward qualifying for contracts, lowering insurance premiums, and reducing liability exposure? So then why is it that so many contractors don’t fully understand what it means for their insurance policies to be compliant with CCDC standards? Without a full understanding of CCDC compliance, do you know what’s at stake?
Here’s what you need to know.
What Is CCDC?
The Canadian Construction Documents Committee (CCDC) produces standardized construction contracts and forms used across the construction industry. Their templates balance risk between parties including project owners, contractors, architects, and insurers. CCDC promotes fairness, clarity, and legal consistency for all.
The CCDC 2 – Stipulated Price Contract, is one of the most widely used forms. This form outlines specific insurance requirements for contractors, including:
- Commercial General Liability (CGL)
- Builders Risk (Course of Construction Insurance)
- Wrap-Up Liability (on large or multi-party projects)
- Automobile and Equipment Insurance
- Contractor’s Pollution Liability
“If your insurance policy doesn’t meet these specifications, you risk being non-compliant, which could delay your project or disqualify you entirely” says Ferrari & Associates’ Partner & VP Construction, Mike Di Pinto.
Does CCDC Compliance Matter?
Simply put, yes. CCDC compliance matters! Not only does CCDC Compliance help streamline bidding and contract awarding, avoids legal and financial disputes, and leads to lower insurance premiums over time. Here’s how Mike breaks it down.
- CCDC Compliance Streamlines Bidding and Contract Awarding
“When I visit clients or advise them on their insurance, most owners and project managers tell me they want peace of mind. A contractor with pre-vetted, CCDC-compliant coverage signals reliability and professionalism. From my experience, CCDC compliance often gives you a competitive edge.” - Avoids Legal and Financial Disputes
“Unfortunately, inadequate insurance wording or coverage limits that don’t meet CCDC standards can often lead to contract breaches, delays, or personal liability for damages not covered by your policy. I always advise my clients to ensure that their insurance coverage and wording meet CCDC standards before signing any agreements.” - Leads to Lower Premiums Over Time
“As an insurance brokerage, Ferrari & Associates partners with many insurance carriers that see CCDC-compliant clients as lower risk. Many even offer more competitive pricing, higher coverage limits, and fewer policy restrictions because compliance is a signal that your business operates by best practices.”
What are some Common Gaps in Non-Compliant Policies?
Unfortunately, many contractors assume their standard commercial insurance policy is enough to satisfy CCDC contract requirements. This misconception is especially common when working with brokers who lack deep expertise in construction-specific insurance. As a result, contractors may be left unknowingly exposed. Below are some of the most critical red flags that could render your policy non-compliant:
- Insufficient Policy Limits or Deductibles:
CCDC contracts typically stipulate minimum coverage limits and acceptable deductible thresholds. Policies that don’t meet these standards can be deemed non-compliant, leaving contractors vulnerable to claim denials and significant financial liability. - Missing Project-Specific Builders Risk Coverage:
Builders Risk is not automatically included in a standard commercial package. It is a separate, project-specific policy that must be requested and tailored to cover materials, labour, and site-specific risks. Failing to obtain this can leave major gaps in coverage for on-site damage. - Inadequate Pollution Liability:
Many commercial general liability (CGL) policies include a “Sudden and Accidental” pollution extension. However, this is not enough for most CCDC projects. A full Contractor’s Pollution Liability (CPL) policy is often required to provide proper protection against environmental exposures. - Lack of Proof of Insurance with CCDC-Compatible Wording:
Simply having the right coverage isn’t enough—your certificate of insurance must include specific language that aligns with CCDC contractual terms. Without it, your policy may not respond to a claim as intended. Worse, the absence of compliant documentation can be considered a breach of contract, potentially putting the entire project at legal risk.
How to Ensure Your Insurance Is CCDC Compliant
Ensuring that your insurance policies are compliant with CCDC standards is essential for a smooth and legally sound construction project. Here are five key points Mike would like you to consider:
- Work with Ferrari & Associates, a construction-savvy broker
“You wouldn’t shop at a general hardware store for specialized construction tools so why would you work with an insurance brokerage that doesn’t completely understand CCDC guidelines? Ferrari & Associates can tailor your insurance portfolio accordingly—not just fill out certificates” - Review the specific CCDC contract you’re using
Not all CCDC contracts are the same. CCDC 2, CCDC 5A/5B (for construction management), and CCDC 14 (for design-build) all have distinct insurance requirements. Understanding these differences is essential to ensure proper coverage and compliance throughout the project lifecycle. - Confirm you’re naming the correct parties
“Owners, lenders, consultants, and property managers often need to be listed as Additional Insureds or Loss Payees, with proper endorsements, to ensure they are protected and have recognized financial or legal interests in the policy, especially in the event of a claim or loss.” This ensures that all involved parties maintain their rights and receive appropriate coverage in accordance with the terms of the insurance policy.
- Get policy wording vetted before your project starts
“Don’t assume. Fill out this form and I’ll be in touch to walk you through the process and, most importantly, confirm that your policy wording matches the obligations spelled out in the CCDC document.”
CCDC Compliance – How to protect your business, win more bids, and avoid costly surprises
Being CCDC compliant is not just about following rules. Rather, it’s about running a tighter, more professional construction business. It ensures that if and when the unexpected happens, your insurance coverage actually works the way your contract says it should. CCDC Compliance shows clients and insurers that you’re serious about risk management—and that can open the door to lower premiums, stronger partnerships, and more profitable jobs.
If you’re unsure whether your insurance portfolio meets CCDC requirements, call Ferrari & Associates’ Partner & VP of Construction, Mike Di Pinto at 647-824-8410 or click on this link to get in touch.
