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 - a risk that could cost you tens of thousands of dollars or more.

Here's exactly what you're exposed to without contractor liability insurance:

Your Financial Risk
If a worker gets injured on your property, you could face lawsuits for medical expenses, lost wages, and pain and suffering claims. Property damage to your home or neighboring properties also becomes your responsibility. In Ottawa's current market, even minor accident claims can reach $50,000-$100,000, while serious injuries can result in claims exceeding $500,000.

What Liability Insurance Should Cover
Legitimate contractors in Ottawa carry Commercial General Liability (CGL) insurance with minimum coverage of $2 million per occurrence. This protects against bodily injury, property damage, and completed operations claims. The policy should name you as an additional insured for the duration of your project.

How to Verify Insurance in Ontario
Always request a Certificate of Insurance directly from the contractor's insurance broker - never accept a photocopy or screenshot that could be altered. The certificate should show current coverage dates, policy limits, and your project address. Call the insurance company directly using the number on the certificate to confirm the policy is active and covers your specific work dates.

WSIB Coverage Requirements
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 or have the contractor provide their account number so you can verify coverage. Without WSIB coverage, injured workers can sue you directly as the property owner.

Red Flags to Watch For
Be extremely cautious of contractors who claim they "don't need insurance" for small jobs, offer to reduce their quote if you waive insurance requirements, or provide expired certificates. These are major warning signs of unlicensed or unprofessional operators who put your financial security at risk.

City of Ottawa Permit Requirements
When pulling building permits through the City of Ottawa (613-580-2424), contractors are required to show proof of insurance. If your contractor can't get permits due to insurance issues, this should immediately disqualify them from your project.

Your Protection Strategy
Before any work begins, verify both liability insurance and WSIB coverage are current and adequate. Consider requiring the contractor to provide updated certificates if your project extends beyond the original coverage dates. For major renovations in Ottawa, some homeowners also increase their own home insurance coverage temporarily.

Finding Insured Contractors
When searching for contractors in Ottawa and surrounding areas like Kanata, Orleans, or Barrhaven, always make insurance verification part of your initial screening process. Legitimate contractors understand this requirement and readily provide documentation.

Never compromise on insurance requirements - the financial risk simply isn't worth any potential savings from hiring an uninsured contractor.