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 coverage you should verify includes:

General Liability Insurance covers property damage, bodily injury, and accidents that occur during construction. While Ontario doesn't mandate a specific amount, $2 million is considered the industry minimum for residential work. For major renovations (kitchen, bathroom, additions), look for contractors with $5 million coverage.

What to Verify in Ottawa:
Call the insurance company directly using the policy number your contractor provides. Don't just accept a certificate - verify it's current and covers your specific project dates. The policy should name your property address and include coverage for subcontractors working on site.

Additional Coverage to Confirm:
Your contractor should also carry WSIB (Workplace Safety and Insurance Board) coverage for all workers. You can verify this at wsib.ca/clearances using their business number. Without valid WSIB coverage, you could be liable for workplace injuries on your property.

Red Flags to Watch For:
Be wary of contractors who say they're "insured through the homeowner's policy" - this is false. Avoid anyone who can't provide current insurance certificates or whose coverage expires during your project timeline. Some contractors try to use expired certificates or coverage that doesn't include your type of work.

For City of Ottawa Permits:
When pulling building permits through ottawa.ca/building, contractors must often provide proof of insurance as part of the application. This is another layer of verification that legitimate contractors will have no problem providing.

Protecting Yourself:
Ask your own home insurance provider about additional coverage during construction. Some policies have limitations during major renovations. Get this sorted before work begins, not after an incident occurs.

What This Costs:
Proper insurance coverage is a legitimate business expense that professional contractors build into their pricing. If a quote seems unusually low, inadequate insurance coverage might be one reason why. The few hundred dollars difference in quotes is minimal compared to the potential liability you face with an uninsured contractor.

Official Resources:

• Verify WSIB clearance: wsib.ca/clearances


• City of Ottawa Building Services: 613-580-2424


• Insurance Bureau of Canada: ibc.ca for general guidance

Remember, legitimate contractors will provide this information readily. If someone hesitates or makes excuses about insurance verification, that's your cue to find someone else.