WSIB clearance and insurance documentation are the two most commonly skipped steps in contractor selection, and they are the two that create the most serious liability exposure when something goes wrong on site. This guide explains what each document means, what to ask for, and what you are exposed to if you proceed without them.
WSIB, Workplace Safety and Insurance Board
What It Is
In Ontario, most construction employers are required to register with the WSIB and maintain coverage for their workers. WSIB provides no-fault workplace injury insurance: if a worker is injured on site, WSIB covers their medical costs and wage replacement, and the worker cannot sue the employer or the property owner for damages.
Why It Matters to You as the Client
If a contractor working on your property is not registered with WSIB or is not in good standing, you, the property owner or tenant, may be liable for the cost of any worker injuries that occur on your project. Ontario's Workplace Safety and Insurance Act makes property owners and principal contractors liable when they hire unregistered contractors.
This is not a theoretical risk. WSIB audits construction projects and has the authority to assess liability against property owners who hired non-compliant contractors.
What to Ask For
Before any contractor starts work, request a WSIB Clearance Certificate. This is a document WSIB issues directly confirming that the contractor is registered, their account is in good standing, and their premiums are current.
Clearance certificates can be verified directly on the WSIB website at wsib.ca. Do not accept a photocopy of an old certificate, clearance status can change. Request a fresh certificate and verify it online.
Important: A clearance certificate covers the general contractor, but not necessarily their subcontractors. On a commercial renovation project, the general contractor is typically responsible for ensuring their subs are WSIB-compliant. Confirm this in writing as part of your contract terms.
Independent Operators and Schedule 2
Some contractors operate as independent operators (sole proprietors with no employees) and may be exempt from WSIB registration or covered under Schedule 2 (self-insured). The rules for independent operators changed in recent years, confirm the contractor's WSIB status directly with WSIB if there is any ambiguity.
Commercial General Liability Insurance
What It Is
Commercial General Liability (CGL) insurance covers damage to property and third-party bodily injury claims arising from the contractor's operations. If the contractor's work causes damage to your building, to a neighboring property, or to a building occupant, the contractor's CGL policy is the first line of financial protection.
Minimum Coverage Amounts
For commercial renovation work in Ontario, $2 million per occurrence is the standard minimum. Many commercial landlords and building owners require $5 million for work in their buildings. Check your lease and your building's base building insurance requirements before setting the required coverage amount.
Additional Insured Status
Requesting a CGL certificate is not enough. You should require that you be named as an additional insured on the policy. Additional insured status means you have direct rights under the policy, if the contractor's insurer denies a claim, you can pursue the claim directly rather than only through the contractor.
Request a Certificate of Insurance (COI) that names you specifically as an additional insured, not just a generic "certificate holder." The COI should be issued directly by the insurer or broker, not created by the contractor.
What the Policy Should Cover
Confirm the policy covers:
- Property damage at the job site
- Third-party bodily injury
- Products and completed operations (covers claims that arise after the work is done)
- Contractor's own employees working on your project
Some standard CGL policies exclude certain construction activities or have sublimits that may not be adequate for your project. Ask the contractor's broker to confirm the scope of coverage if you have concerns.
Tools and Equipment Insurance
On larger projects, confirm the contractor maintains tools and equipment insurance for their own tools and any rented equipment on site. This reduces the risk that a theft or damage event on your site turns into a dispute with the contractor over equipment replacement.
The Bottom Line
Requesting and verifying these documents takes 15 minutes. The exposure you carry without them can be significant. Make it a standard step in your contractor selection process, not an afterthought after the contract is signed.
VNG provides current WSIB clearance certificates and CGL certificates of insurance naming the client as additional insured on every project. Contact us to request documentation for your project.
Ready to start your project?
Tell us what you're building. We'll come back with a clear scope, honest timeline, and a number you can trust.