What type of insurance should a contractor have in Ontario?

In Ontario, contractors must carry specific insurance coverage to protect both themselves and homeowners, with WSIB clearance being mandatory for most construction work.

Required Insurance Coverage in Ottawa/Ontario

Workers' Safety and Insurance Board (WSIB) coverage is legally required for most contractors in Ontario. This covers workplace injuries and is essential - never hire a contractor who can't provide a valid WSIB clearance certificate. You can verify their coverage at wsib.ca/clearances using their account number.

General Liability Insurance should provide minimum $2 million coverage, protecting against property damage or injuries that occur during the work. This covers scenarios like a contractor accidentally damaging your neighbor's property or someone getting injured on your project site.

Professional Liability Insurance (also called Errors & Omissions) protects against mistakes in workmanship or design decisions. While not legally required, reputable contractors carry this coverage, especially for larger renovations in areas like Kanata, Barrhaven, or Orleans where home values are substantial.

Specialized Coverage Requirements

For electrical contractors working in Ottawa, ESA (Electrical Safety Authority) licensing requires proof of liability insurance before license approval. You can verify their ESA license and insurance status at esasafe.com/contractor-locator.

TSSA-certified gas technicians must also maintain insurance coverage as part of their certification requirements. Check their credentials at tssa.org before allowing any gas work in your Ottawa home.

Commercial Vehicle Insurance should cover their work trucks and equipment. If they're transporting materials to your Stittsville or Manotick property, proper vehicle coverage protects against damage during transport.

What to Request and Verify

Always ask contractors to provide current Certificates of Insurance showing coverage amounts and expiry dates. Don't accept expired certificates or vague promises to "get coverage later." For projects over $50,000, consider requiring the contractor to add you as an "additional insured" on their policy.

Bonding isn't insurance but provides additional protection. Licensed contractors often carry surety bonds that guarantee project completion or payment of subcontractors.

Red Flags to Avoid

Be extremely cautious of contractors who claim they're "covered under homeowner's insurance" or suggest you can "just claim it on your policy." This is false and leaves you liable for injuries or damages. Similarly, avoid contractors who say WSIB coverage "isn't necessary for small jobs" - it's required by Ontario law regardless of project size.

For major renovations in Ottawa, verify all insurance coverage before signing contracts. Contact City of Ottawa Building Code Services at 613-580-2424 if you have questions about contractor requirements for permitted work.

Bottom line: Legitimate contractors readily provide current insurance certificates and WSIB clearance. If they hesitate or make excuses, find someone else for your Ottawa project.