Hiring an uninsured contractor is one of the most dangerous financial mistakes an Ottawa homeowner can make. If a worker is injured on your property and the contractor doesn't have WSIB (Workplace Safety and Insurance Board) coverage, YOU could be held liable for medical costs, lost wages, and legal fees — potentially hundreds of thousands of dollars. If a contractor damages your property, a neighbour's property, or causes a fire and doesn't carry liability insurance, you're left paying out of pocket. Despite these risks, an estimated 15–25% of contractors in Ontario operate without proper in...
1. Why Contractor Insurance Matters in Ottawa 2. Types of Insurance Ottawa Contractors Should Carry 3. WSIB Requirements for Ottawa Contractors 4. How to Verify a Contractor's Insurance 5. What Happens If Your Contractor Isn't Insured? 6. Insurance Requirements by Trade 7. How Much Does Contractor Insurance Cost? 8. Homeowner's Insurance & Renovation Coverage 9. Bonding & Performance Guarantees 10. Red Flags: Signs of an Uninsured Contractor
Contractor insurance exists to protect three parties: the homeowner (you), the contractor's employees, and third parties (neighbours, passersby). Without it, financial liability for accidents, injuries, and property damage falls on the contractor personally — and potentially on you as the property owner. In Ottawa, the stakes are high. Construction costs are significant, homes are valuable, and the legal system holds property owners accountable when accidents happen on their property. A single ...
Every Ottawa contractor should carry at minimum these insurance types:
This is the most important insurance for homeowner protection. CGL covers damage the contractor causes to your property (accidental fire, water damage, structural damage), injuries to non-employees on the job site, damage to neighbouring properties, and completed operations (problems that arise afte...
WSIB provides no-fault workplace injury insurance for employees. If a worker is injured, WSIB pays medical costs, rehabilitation, and lost wages regardless of who was at fault. Without WSIB, injured workers can sue the homeowner. In Ontario, most construction businesses are required to register wit...
For contractors who provide design services (design-build firms, architects, engineers), professional liability insurance covers errors in design or professional advice. This is less common for trade contractors but essential for design-build projects. Recommended for: Design-build contractors, pro...
WSIB is one of the most misunderstood aspects of contractor insurance in Ottawa. Here's what homeowners need to know: Who Must Register: In Ontario, all construction businesses with employees must register with WSIB. This includes general contractors, subcontractors, and any business that hires workers (even temporary/casual workers) for construction work. Independent Operators: Sole proprietors with no employees may be exempt from mandatory WSIB registration. However, they can and should purc...
Don't take a contractor's word for it — verify independently: Step 1 — Request Certificates: Ask the contractor for a current Certificate of Insurance (for liability) and a WSIB Clearance Certificate. Reputable contractors provide these without hesitation — they have them ready because they're asked frequently. Step 2 — Verify Liability Insurance: The Certificate of Insurance should show the contractor's name (matching their business name), coverage amount ($2M+ recommended), policy dates (mus...
The consequences of hiring an uninsured contractor can be severe: Worker Injury: If a contractor's employee is injured on your property and the contractor lacks WSIB coverage, the injured worker can sue you (the homeowner) for medical costs, lost wages, pain and suffering, and future care costs. These claims can exceed $500,000. Your homeowner's insurance may deny coverage because the injury involved a commercial contractor. Property Damage: If an uninsured contractor damages your home (fire, ...
At minimum: Commercial General Liability insurance ($2M+ per occurrence) and WSIB (Workplace Safety and Insurance Board) coverage. For major projects, $5M liability is recommended. Gas work requires TSSA certification, and electrical work requires ESA licensing. Ask for current certificates before hiring.
Request a Certificate of Insurance and WSIB Clearance Certificate. Verify liability insurance by calling the insurance company listed on the certificate. Verify WSIB at wsib.ca using the certificate number. For major projects, ask to be named as 'additional insured' on the liability policy.
WSIB (Workplace Safety and Insurance Board) provides no-fault workplace injury insurance. If a worker is injured on your property and the contractor has WSIB, the costs are covered. Without WSIB, you (the homeowner) can be sued for medical costs and lost wages — potentially hundreds of thousands of dollars.
Yes. If the contractor doesn't have WSIB coverage, an injured worker can sue you as the property owner. Even with WSIB coverage, there may be liability issues if you contributed to unsafe conditions. Always verify WSIB coverage and maintain safe site conditions.
General liability insurance costs contractors $1,000–$15,000+ annually depending on their trade, revenue, and claims history. WSIB premiums range from $3–$12 per $100 of payroll depending on trade. Total insurance costs are typically 3–8% of a contractor's revenue.