Inserting two rows from single row
As Aaron mentioned, for some reason you need to terminate each statement in Fiddle.

Anyway, for the query, you can use CROSS APPLY to expand the result set. This method scans the base table only once, and for each row applies the subquery, which in this case actually selects two rows:

INSERT INTO userContact(userId, contactType, contactInfo)
  SELECT
    ui.userId,
    c.contactType,
    c.contactInfo
    FROM usersToImport ui
    CROSS APPLY
    (
      SELECT 'email' AS contactType, ui.email AS contactInfo UNION ALL
      SELECT 'telephone', ui.telephone
    ) c;