What type of insurance should a contractor have in Ontario?

In Ontario, contractors must carry several types of insurance to legally operate and protect both themselves and homeowners - with WSIB coverage being mandatory for most construction work.

Required Insurance Coverage in Ontario

Workers' Safety and Insurance Board (WSIB) coverage is mandatory for most contractors in Ontario. This covers workplace injuries and is legally required for construction work. Always verify a contractor's WSIB clearance certificate through wsib.ca/clearances before hiring. In Ottawa, reputable contractors will readily provide this documentation.

General Liability Insurance protects against property damage and injuries that occur during construction. Most contractors carry $1-2 million in coverage, though larger projects may require higher limits. This insurance covers damage to your home, neighboring properties, or injuries to third parties during the work.

Commercial Vehicle Insurance is required if the contractor uses vehicles for business purposes. This covers their trucks, vans, and equipment during transport to your Ottawa property.

Additional Recommended Coverage

Professional Liability Insurance (also called Errors & Omissions) protects against design errors, faulty workmanship, or failure to meet building codes. This is particularly important for contractors doing structural work or major renovations in Ottawa where Ontario Building Code compliance is critical.

Tools and Equipment Insurance covers theft or damage to the contractor's tools and equipment while working on your property. While not legally required, it prevents contractors from potentially claiming against your homeowner's insurance for stolen tools.

Bonding isn't insurance but provides financial protection if the contractor fails to complete the work or doesn't pay subcontractors. Bonded contractors have been pre-approved by a bonding company, adding another layer of credibility.

Verification Process in Ottawa

When hiring contractors in Ottawa, request certificates of insurance directly from their insurance provider - not just copies from the contractor. Verify the coverage is current and adequate for your project scope. For electrical work, ensure they're properly licensed through ESA (esasafe.com/contractor-locator), and for gas work, verify TSSA certification.

Contact the City of Ottawa Building Code Services at 613-580-2424 if you're unsure about insurance requirements for your specific project. They can clarify what coverage is needed for permit applications.

Red Flags to Watch For

Be extremely cautious of contractors who can't provide proof of insurance, claim they're covered under your homeowner's policy, or offer significantly lower prices because they "don't need insurance." Uninsured contractors put you at serious financial risk for injuries, property damage, and incomplete work.

Always verify insurance coverage before signing contracts and ensure the policy remains active throughout your project duration. This protects your investment and ensures you're working with legitimate, professional contractors in the Ottawa area.