What is the difference between WSIB and liability insurance for contractors?

WSIB and liability insurance serve completely different purposes for Ottawa contractors - WSIB protects workers while liability insurance protects you as the homeowner from property damage and accidents.

WSIB (Workplace Safety and Insurance Board)

WSIB is Ontario's mandatory workplace injury insurance that covers medical costs and lost wages if a worker gets hurt on your job site. In Ottawa, any contractor with employees must have WSIB coverage - it's the law, not optional.

Here's what WSIB covers: If a contractor's employee falls off your roof in Kanata or gets injured installing your kitchen in Barrhaven, WSIB pays for their medical treatment, rehabilitation, and lost income. Without WSIB, you could be personally liable for these costs, which can easily reach hundreds of thousands of dollars.

To verify WSIB coverage, ask contractors for their WSIB Clearance Certificate from wsib.ca/clearances. This shows they're current on payments and properly covered. The certificate should match the contractor's business name exactly - watch for mismatched names as a red flag.

Liability Insurance

Liability insurance protects you from property damage and accidents caused by the contractor's work. This covers situations like a contractor accidentally breaking your neighbor's window, flooding your basement due to poor workmanship, or someone getting hurt because of unsafe conditions they created.

General liability insurance typically covers $1-2 million in damages. For larger projects in Ottawa (additions, major renovations), consider requiring $2 million minimum coverage. The contractor should provide a Certificate of Insurance listing you as an additional insured party.

Why You Need Both Verified

Many Ottawa homeowners make the mistake of assuming one covers everything. A contractor might have liability insurance but skip WSIB to save money - leaving you exposed to massive injury claims. Conversely, they might have WSIB but no liability coverage, meaning you're stuck paying for property damage.

Red Flags to Watch For

Be suspicious of contractors who can't immediately provide both certificates, claim they're "covered under someone else's policy," or offer to get insurance "after you sign." Legitimate contractors in Ottawa, Nepean, Orleans, and surrounding areas carry both and can prove it instantly.

Some contractors try to avoid WSIB by claiming they're sole proprietors with no employees, then show up with helpers. If anyone besides the named contractor works on your property, WSIB coverage is required.

Getting Proper Verification

Request certificates before signing any contract. For WSIB, verify the clearance certificate number directly at wsib.ca. For liability insurance, call the insurance company to confirm the policy is active and covers the work dates.

The City of Ottawa Building Code Services (613-580-2424) requires proof of insurance for most permit applications, but they don't verify WSIB - that's your responsibility as the homeowner.

Both coverages protect you from different but equally devastating financial risks. Never hire a contractor who can't provide current certificates for both WSIB and liability insurance.