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 injury claims.

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 carry WSIB coverage - it's the law, not optional.

When you hire a contractor in Ottawa, always verify their WSIB clearance certificate through wsib.ca/clearances. This certificate proves they're current on premiums and properly covered. If a contractor doesn't have valid WSIB and someone gets injured on your property, you could be held liable for their medical costs and compensation - potentially tens of thousands of dollars.

The key point: WSIB protects the workers, but it also protects you from being sued by injured workers. Without it, an injured worker can come after your home insurance or personal assets.

Liability Insurance

Liability insurance protects you if the contractor damages your property or if someone gets injured due to the contractor's negligence. For example, if they accidentally break your neighbor's window, flood your basement, or a passerby trips over their equipment, liability insurance covers those claims.

In Ottawa, reputable contractors typically carry $1-2 million in general liability coverage. This insurance covers property damage, bodily injury to third parties, and legal defense costs. Always ask to see their certificate of insurance and verify it's current - you can call the insurance company directly to confirm coverage.

Why You Need Both Verified

Smart Ottawa homeowners verify both before any work begins. Here's your protection checklist:

For WSIB: Get the clearance certificate number and verify it online at wsib.ca. The certificate shows the contractor's registration number, coverage period, and that they're in good standing. Don't accept expired certificates or promises to "get it later."

For liability insurance: Request a certificate of insurance naming you as additional insured. This means you'll be notified if the policy gets cancelled. Verify the coverage amount meets your comfort level - $1 million minimum, but $2 million is better for larger Ottawa renovation projects.

Red Flags to Watch For

Be wary of contractors who say "don't worry about WSIB, I work alone" - sole proprietors still need coverage in many situations. Also avoid contractors who can't immediately provide current insurance certificates. Legitimate Ottawa contractors have these documents readily available because they know informed homeowners always ask.

Some contractors try to save money by working without proper coverage, but that risk transfers directly to you. The few hundred dollars you might save upfront could cost you thousands if something goes wrong.

Getting Verification

The City of Ottawa Building Code Services (613-580-2424) can provide guidance on insurance requirements for permitted work. For major renovations requiring permits, they may ask to see proof of coverage before approving the work.

Remember: WSIB protects workers and shields you from worker injury claims, while liability insurance protects against property damage and third-party injuries. Both are essential pieces of your protection when hiring any Ottawa contractor.