How much liability insurance should my contractor carry?

In Ottawa, your contractor should carry a minimum of $2 million in general liability insurance, though many reputable contractors carry $5 million or more for larger projects.

The standard expectation across Ontario is $2 million in general liability coverage, which protects against property damage, bodily injury, and other accidents that could occur during your project. However, for significant renovations like kitchen remodels, additions, or structural work, you'll want to see coverage of $5 million or higher.

What Coverage Should Include

Your contractor's liability insurance should specifically cover general liability (property damage and bodily injury), completed operations (issues that arise after work is finished), and products liability if they're supplying materials. Make sure the policy is current and won't expire during your project timeline.

For electrical contractors working under ESA permits in Ottawa, many carry additional professional liability coverage. Similarly, TSSA-certified gas technicians often have specialized coverage for their trade-specific work.

Getting Proof of Insurance

Always request a Certificate of Insurance directly from the contractor before work begins. This certificate should list you as an "additional insured" for the duration of your project, which means their insurance will protect you if something goes wrong. Don't accept a photocopy of a policy - get the official certificate from their insurance company.

You can verify the insurance company is legitimate by checking with the Financial Services Regulatory Authority of Ontario (FSRA). If a contractor hesitates to provide current insurance certificates, that's a major red flag.

WSIB Coverage Matters Too

In Ontario, contractors must also carry WSIB (Workplace Safety and Insurance Board) coverage for their workers. Request a WSIB Clearance Certificate from wsib.ca/clearances - this protects you from liability if a worker gets injured on your property. Contractors working without WSIB coverage put you at serious financial risk.

What About Your Own Insurance?

Contact your home insurance provider before major work begins. Many policies require notification for renovations over certain dollar amounts, and some may temporarily increase your coverage during construction. This is especially important for projects requiring City of Ottawa building permits.

Red Flags to Watch For

Be extremely cautious of contractors who claim they "don't need insurance" for smaller jobs, offer to reduce their quote if you waive insurance requirements, or can't provide current certificates. In Ottawa's construction market, legitimate contractors understand insurance is non-negotiable.

For projects requiring building permits through the City of Ottawa (613-580-2424), many contractors carry even higher coverage amounts since permit work involves greater complexity and risk.

Remember: adequate insurance protects both you and the contractor. It's a sign of professionalism, not an unnecessary expense.