What happens if a contractor damages my neighbor's property?

If a contractor damages your neighbor's property during work on your home, the contractor's liability insurance should cover the damage - but you need to verify they have proper coverage before work begins.

In Ottawa, this is exactly why checking insurance is so critical when hiring contractors. Here's how liability coverage works and what you need to know:

Contractor's Liability Insurance Requirements

All legitimate contractors in Ontario should carry general liability insurance (typically $1-2 million minimum). This coverage specifically protects against property damage to third parties, including neighbors. Before any work starts, always request a Certificate of Insurance directly from their insurance company - not just a photocopy they could have altered.

The certificate should show current coverage and list you as an additional insured for the project duration. Many Ottawa contractors work with brokers who can provide these certificates within 24 hours.

WSIB Coverage Matters Too

Verify the contractor has valid WSIB coverage at wsib.ca/clearances. If a worker gets injured and the contractor lacks WSIB, you could be liable for medical costs and lost wages. This becomes especially important if the injury occurs while accessing neighboring property.

What to Do When Damage Occurs

Document everything immediately with photos and videos. Get written statements from witnesses. Contact the contractor right away - reputable contractors will immediately involve their insurance company. If they refuse or claim they're not responsible, you have a problem.

Contact the contractor's insurance company directly (their contact info should be on the certificate you requested). Don't let the contractor handle everything - insurance companies often respond faster to property owners than contractors.

Your Homeowner's Insurance Backup

Your homeowner's insurance may cover neighbor property damage caused by contractors working on your property, but this varies by policy. Check with your insurer before work begins. Some policies require notification of major renovation projects.

Red Flags to Avoid

Never hire contractors who can't provide current insurance certificates, claim they'll "handle any problems personally," or suggest paying cash to avoid documentation. These are classic signs of unlicensed operators who disappear when problems arise.

For electrical work, verify ESA licensing at esasafe.com/contractor-locator. For gas work, check TSSA certification at tssa.org. Licensed contractors are more likely to carry proper insurance.

Legal Protections in Ontario

Under Ontario law, you can be held liable for damage caused by contractors you hire if they lack proper insurance. This makes verification essential, not optional. The Ontario Consumer Protection Act provides some protections, but prevention through proper vetting is your best defense.

Getting Multiple Quotes

When getting estimates, ask each contractor about their insurance coverage and claims history. Contractors with good insurance relationships often get better rates and can provide certificates quickly. This is actually a good way to separate professionals from fly-by-night operators.

Contact City of Ottawa Building Code Services at 613-580-2424 if you're unsure about permit requirements that might affect neighboring properties. Some projects require notification to adjacent property owners.

The key is verification before work begins - once damage occurs, you're dealing with insurance companies and potentially legal issues that could have been avoided with proper contractor screening.