What is a WSIB clearance certificate, and why do homeowners ask for it?

What it protects against

Liability for someone else's premiums. If a contractor owes the board money, the party who hired them for construction work can be pursued for it, up to the labour portion of the contract. A clearance removes that exposure only while it is valid, so the hiring party needs a current one for the whole job, which is why property managers and general contractors ask before signing anything. A homeowner hiring a contractor directly for renovation work on their own home is exempt.

Mandatory coverage in construction

Since 2013, coverage in Ontario construction extends to independent operators, sole proprietors, partners, and executive officers, not only to companies with employees. A one-person operation working in construction is generally required to have an account.

There are two exemptions. One partner or one executive officer per business can opt out by declaration if they do no construction work. And people who do only home renovation work, hired and paid directly by the homeowner, need no coverage for themselves, though any employees they have still do.

It expires

A clearance is valid for up to ninety days, and most expire on a fixed quarterly date, so one issued mid-cycle can run out much sooner. It is obtained free through the board's online service, and a new one is issued automatically while the account stays in good standing. Contractors who treat it as a one-time document end up handing over an expired one at the moment it matters.

Why it belongs on the website

Stating WSIB coverage, licensing, and insurance in plain text answers the question a careful client asks before the call. It costs nothing to add, and a line offering a current clearance certificate on request saves a phone call on both sides.