How do I know if my contractor is insured?

Always verify your contractor carries both liability insurance and WSIB coverage before any work begins - this protects you from potentially devastating financial liability if someone gets injured on your property or if damage occurs during the project.

Liability Insurance Verification
Ask your contractor to provide a current Certificate of Insurance directly from their insurance company, not just a photocopy of a policy. This certificate should show general liability coverage of at least $2 million (industry standard in the GTA), and importantly, it should list you as an "additional insured" for the duration of your project. Call the insurance company directly using the number on the certificate to confirm the policy is active and covers the dates of your project. Many homeowners skip this step, but it's crucial - expired or fraudulent certificates are more common than you'd think.

WSIB Coverage Requirements
In Ontario, contractors must carry Workplace Safety and Insurance Board (WSIB) coverage for their workers. Request a current "Clearance Certificate" from WSIB showing they're in good standing with no outstanding premiums. You can verify this online at wsib.ca using their clearance certificate number, or call WSIB directly at 1-800-387-0750. If a contractor claims they don't need WSIB because they work alone, be cautious - even sole proprietors often need coverage depending on their trade and risk level.

Toronto-Specific Considerations
The City of Toronto requires proof of insurance for building permits on larger projects, but even smaller jobs need proper coverage. Many Toronto homeowners have learned this lesson the hard way when uninsured contractors caused water damage to neighboring units in condos or injured themselves on the job. Your homeowner's insurance typically won't cover contractor-related incidents if the contractor lacks proper coverage, leaving you personally liable for medical bills, lost wages, or property damage that could easily reach six figures.

Red Flags to Watch For
Be wary of contractors who can't immediately provide insurance documentation, claim they're "covered under someone else's policy," or offer significantly lower prices partly because they "don't have insurance overhead." These are serious warning signs. Legitimate contractors understand insurance verification is standard and will have their certificates readily available.

Next Steps
Before signing any contract, verify both liability insurance and WSIB coverage, and ensure your contract specifically states the contractor will maintain this coverage throughout the project. Consider this verification as important as checking references - it's your financial protection if something goes wrong.