Registered Insurance Brokers of Ontario (RIBO) Exam 2026 – 400 Free Practice Questions to Pass the Exam

Owner's or contractors protective liability insurance is the most suitable type of coverage for someone planning to build a new home and subcontract part of the work. This insurance is designed specifically to provide coverage for property owners or general contractors against liabilities that may arise from the operations of subcontractors hired for construction projects.

This type of liability coverage effectively addresses the potential risks involved in construction, such as bodily injury or property damage that may occur during the building process. It ensures that the policyholder is protected in case a subcontractor's work leads to claims against the insured party.

The other types of liability insurance mentioned serve different purposes. General liability insurance primarily covers businesses against various claims, including bodily injury and property damage, but it may not focus specifically on the relationship between subcontractors and the principal contractor or property owner. Umbrella liability insurance acts as an additional layer of protection, extending beyond the limits of underlying policies, which may not directly cater to specific construction-related liabilities. Professional liability insurance is geared towards professionals who provide specific services and advice, which does not align with the scenario of subcontracting construction work.