What happens if my contractor does not have liability insurance?

If your contractor doesn't have liability insurance in Ottawa, you become personally liable for any accidents, injuries, or property damage that occurs during your project - potentially costing you tens of thousands of dollars or more.

Here's exactly what you're risking and how to protect yourself:

Your Financial Exposure Without Contractor Insurance

When a contractor works on your Ottawa property without liability insurance, you're essentially self-insuring their work. If a worker gets injured on your property, if they damage your neighbor's fence, or if faulty work causes water damage months later, the costs fall on you. In Ontario, this can include medical expenses, legal fees, property repairs, and even ongoing disability payments.

Your homeowner's insurance may not cover work-related accidents or damage caused by uninsured contractors. Many policies specifically exclude coverage when unlicensed or uninsured contractors are involved, leaving you completely exposed.

Ontario Legal Requirements

In Ontario, legitimate contractors must carry:

• General Liability Insurance: Minimum $2 million coverage


• WSIB Coverage: Either as an employer or independent operator


• Professional Liability: For design-build work

For electrical work in Ottawa, Licensed Electrical Contractors (LEC) through ESA must carry insurance. Similarly, TSSA-certified gas technicians require proper coverage. You can verify these credentials through esasafe.com and tssa.org respectively.

Red Flags of Uninsured Contractors

Watch for contractors who:

• Can't provide current insurance certificates


• Offer significantly lower prices than others


• Ask for large upfront payments


• Don't have proper business licenses


• Work only in cash


• Can't provide WSIB clearance certificates

How to Verify Insurance in Ottawa

Before any work begins, demand:

Certificate of Insurance showing current coverage

WSIB Clearance Certificate from wsib.ca/clearances

Business license verification through your municipality

ESA/TSSA credentials for electrical/gas work

Call the insurance company directly to confirm the policy is active and covers the work being performed. Don't accept expired certificates or vague promises to "get insurance."

What to Do If You're Already Working With an Uninsured Contractor

Stop work immediately. Even if you've paid deposits, continuing puts you at enormous financial risk. Contact the City of Ottawa Building Code Services at 613-580-2424 if permits are involved - they can advise on next steps.

Consider this a lesson learned rather than a disaster. The cost of finding a new, properly insured contractor is minimal compared to potential liability exposure.

Finding Properly Insured Ottawa Contractors

Use the ESA contractor locator at esasafe.com for electrical work, and TSSA.org for gas work. For general contractors, always verify insurance before signing contracts. Legitimate Ottawa contractors will readily provide insurance certificates and understand why you're asking.

The Ontario Consumer Protection Act provides some recourse for contractor issues, but prevention through proper vetting is always better than trying to recover damages after problems occur.

Remember: if a contractor can't afford proper insurance, they can't afford to fix problems their work might cause on your property.