WSIB and WCB Clearance: Check a Contractor Before Work

A workers' compensation clearance confirms that a contractor is registered with the province's board and up to date on its premiums, and it shields the person who hired them if those premiums go unpaid. Ontario's WSIB does not require a homeowner renovating their own house to collect one; BC and Alberta tell anyone hiring a contractor to check. In BC, skipping it can leave a homeowner liable for an unregistered firm's unpaid premiums.

What a clearance certificate proves

WSIB describes a clearance as a number showing that a business is registered and up to date with it; WorkSafeBC and WCB Alberta issue a clearance letter that confirms the same. Its job is to protect the hirer: WSIB does not hold a principal with a valid clearance liable for premiums the contractor owes for that period, and WorkSafeBC clears you with a letter addressed to you that shows the business active and in good standing for the contract period.

Ontario: when homeowners need a WSIB clearance

A homeowner renovating their own house does not have to collect one. WSIB says a clearance is not required when a contractor is hired for home repairs or renovations by a home's resident, occupant or a member of their family, and its clearance policy does not apply to householders who buy services from a contractor. A landlord renovating a rental they do not live in sits outside that wording.

Some contractors have no WSIB account to show. WSIB's rules for independent operators say a business that only does home repairs or renovations on private residences, hired and paid directly by the homeowner or resident, does not need coverage, but it must still cover its employees.

A solo renovator with no clearance can be working legally, while a firm with a crew on your site should be able to produce one. Checking costs nothing and needs no login, which makes it worth a minute even when it is not required.

BC: WorkSafeBC clearance letters

WorkSafeBC treats a homeowner who hires an independent business as its customer, not its employer, but says you could be held jointly liable for that business's unpaid premiums if it is not registered and paying. A clearance letter addressed to you, showing the business active and in good standing for the full contract period, clears you.

The clearance letter application finds a firm by its six- or nine-digit account number or its exact legal or trade name, and one letter can cover up to 150 firms; a letter confirming that a firm is not registered comes only by phone or fax. Get one before work starts and another when you release the 10% holdback, since that is your last payment.

Hiring a person who is not in business is different. For a one-time job, such as a retired carpenter doing a small renovation, WorkSafeBC counts the total hours of every worker, and at 24 hours or more you are an employer who must apply for coverage: three workers at nine hours each is 27 hours.

Alberta: WCB clearance letters

WCB Alberta tells anyone hiring an individual or company to get a clearance before hiring and before releasing payment, because without coverage you could be responsible for outstanding WCB premiums. Status can be searched online, and letters can be emailed, faxed or printed. The province's own advice to homeowners hiring a contractor asks for the WCB number together with an insurance certificate for public liability and property damage.

When to check, and what a clearance does not cover

Three moments cover most renovations: before you sign and pay the deposit, before each large payment, and after the last one. A clearance answers one question, whether the premiums are paid. Damage to your house is a matter for the contractor's liability insurance, a separate certificate to ask for when you vet a contractor.