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Contractor Insurance Verification: How to Check Before You Hire

By HMJ Contracting · Ottawa, ON

Homeowner and contractor reviewing insurance certificate

To verify a contractor’s insurance, ask for a certificate of insurance, confirm it with the insurer or broker that issued it, and check workers’ compensation coverage with your provincial board. In Ottawa, that board is the Workplace Safety and Insurance Board (WSIB). Then call at least three references. The whole process takes a day or two, and it protects you from paying for another company’s unpaid premiums or an uninsured accident on your property.

This guide walks through each check in order, explains what a certificate should show, and lists the reference questions that tell you the most. We are HMJ Contracting, an Ottawa contractor doing abatement, renovation and demolition, so we see how homeowners are asked to handle this from the other side of the table.

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Plan Safer Work in Older Ottawa Homes
HMJ Contracting provides certified abatement for asbestos, lead, and mold, alongside renovation and demolition services for Ottawa properties.

TL;DR

  • Ask for a certificate of insurance showing public liability and property damage coverage, then have the insurer or broker send or confirm it directly.
  • Check workers’ compensation coverage with your provincial board. In Ontario, that means contacting the WSIB.
  • The certificate should name the same company that signs your contract, and it should be current for the whole job.
  • Call at least three references, including one from further back, and ask what went wrong and how the contractor handled it.
  • If a contractor cannot show coverage, do not let work begin. Put insurance and coverage details in the written contract.

Table of Contents

Why insurance verification matters on a renovation

A renovation puts people, tools and materials inside your home. If a worker is hurt or something is damaged, the question is who pays. Two kinds of coverage answer it:

  • Liability insurance covers damage to your property and injuries to other people caused by the work.
  • Workers’ compensation coverage covers the contractor’s own workers if they are injured on the job.

Without the second, an injury on your property can become a dispute that reaches you. The provincial boards also warn about unpaid premiums. WorkSafeBC says that if you hire a registered contractor who is not making required payments, you could be liable for insurance premiums relating to the work. The rules differ by province, so always check the board for the province where the work happens.

The risk is higher on hazardous work. Abatement of asbestos, lead or mould, interior demolition and structural openings all carry more risk than painting a bedroom. That is where verified coverage matters most.

Step 1: Ask for a certificate of insurance

A certificate of insurance (COI) is a one-page summary of the policies a contractor holds. Ask for it before you sign, not after work starts. Alberta’s government guide tells homeowners to ask to see an insurance certificate showing public liability and property damage coverage that covers all workers on the job. The same logic applies in Ontario.

What the certificate should show

Read the certificate against this list:

What to look for Why it matters
Named insured It must match the legal business name on your quote and contract, not a different company or an individual.
Type of coverage Commercial general liability (public liability and property damage) at a minimum.
Limit of liability A common standard is $2 million. One industry guide says $2 million general liability is the standard across provinces and $5 million is recommended for major renovations.
Policy period Effective and expiry dates must cover the entire job, including any delay.
Insurer and broker You need these names to confirm the policy is real and active.
Certificate holder You can ask for your name and address to be listed as certificate holder.

The limit is worth a conversation on bigger jobs. A kitchen gut, a basement finish or a full-home renovation involves plumbing, electrical work and structural changes, so a higher limit is reasonable to ask about.

Check what work the policy covers

A general liability policy is written for a described type of business. A contractor who does demolition or hazardous material work should be able to tell you plainly that their policy covers that work. Ask the question directly: does this policy cover the work in my contract? If the answer is vague, ask the broker.

Step 2: Confirm the certificate with the insurer or broker

A certificate is only a document. The step that makes it reliable is confirming it with the source. Ask the contractor’s insurance agent or broker to email the certificate to you directly, or call the broker named on it and ask whether the policy is active today, for the dates shown and for the named company.

A short call script:

  1. Give the policy number and the named insured from the certificate.
  2. Ask whether the policy is in force today and when it expires.
  3. Ask whether the coverage includes the type of work you are hiring for.
  4. Ask whether the insurer will notify you as certificate holder if the policy is cancelled.

Many homeowners skip this because the paper looks official. It takes five minutes and it is the check that separates a real policy from a lapsed one.

Step 3: Verify workers’ compensation coverage

Every Canadian province and territory has a workers’ compensation board. One procurement guide lists WSIB in Ontario, WorkSafeBC in British Columbia, WCB in Alberta, Saskatchewan, Manitoba and the Maritimes, and CNESST in Quebec. Ottawa is in Ontario, so the WSIB is the one you deal with. Ontario’s government says workers and independent operators in the construction industry must have workplace safety and insurance coverage, and it advises homeowners to check coverage by contacting the WSIB.

A clearance certificate

A clearance certificate confirms that a business is registered and in good standing with the board. Ask the contractor for one, then confirm its number and valid-to date with the board. Check that the dates cover your project. A guide for procurement teams notes that a clearance typically covers 30 to 90 days, so a certificate printed months ago may not cover your start date.

One point is specific to Ontario. An industry guide reports that in Ontario the WSIB does not require a clearance when you hire a contractor directly for work on the home you live in. It adds that asking for one still shows the firm is registered. So if a contractor cannot or will not give you one, that is information worth weighing.

If you work outside Ontario

If you own property elsewhere, the rules and tools differ:

Step 4: Check licences, trade certification and permits

Insurance is one layer. Ontario’s government also advises homeowners to ask whether tradespeople have certification from Skilled Trades Ontario. Electricians and plumbers doing regulated work need the right credentials, and your contract should say who is responsible for permits.

Alberta’s contract checklist asks for a statement identifying who is responsible for getting all necessary permits. The same line belongs in an Ottawa contract. For a longer look at licensing, see our guide on how to vet licensed renovation contractors in Ottawa, and for code requirements the building code compliance checklist covers what inspectors look for.

Step 5: Check the business itself

Before you rely on any document, confirm the company exists as described. An eight-step hiring guide lists the basics: legal name, address, GST/HST number and complaints. The name on the quote, the contract, the certificate and the clearance should all be the same. A mismatch, such as a trade name on the quote and a different company on the insurance, is the most common reason a certificate does not protect you.

Business identity checks and document name matching

Step 6: Check references properly

Insurance tells you a contractor is covered. References tell you how the work and the relationship went. Ontario’s government says to always get at least three references and check them, even if someone you know recommended the contractor.

Choose the right references

  • Ask for people who had work similar to yours. A deck reference tells you little about a basement renovation.
  • Ask for one recent reference and one from further back. Ontario’s guidance notes that some problems, such as those in roofing or paving, often do not show up for a year or more.
  • Ask whether you may see the finished work, not just hear about it.

Questions to ask on the call

The City of Calgary suggests asking about the quality of the work and the timeliness, budget and ease of the process. Turn that into specific questions:

  1. Did the job finish on the agreed date? If not, how was the delay communicated?
  2. Did the final cost match the quote? How were changes priced?
  3. Did the crew protect the rest of your home and clean up each day?
  4. Did the contractor come back to fix the deficiency list, and how quickly?
  5. Was the site safe and organized? Did anything get damaged, and who paid?
  6. What went wrong, and what did the contractor do about it?
  7. Would you hire them again?

The last two are the most useful. One hiring guide suggests asking each reference what went wrong and what the firm did about it, then asking whether they would hire the firm again. Every project has a problem somewhere. How it was handled is the real answer.

A one-page checklist

Keep this list next to your quotes:

  • [ ] Legal business name, address and GST/HST number confirmed
  • [ ] Certificate of insurance received, with the same named insured as the contract
  • [ ] Liability limit and policy dates reviewed
  • [ ] Broker or insurer contacted to confirm the policy is active
  • [ ] WSIB coverage or clearance confirmed, with dates covering the job
  • [ ] Trade certification and permit responsibility written down
  • [ ] Three references called, at least one older than a year
  • [ ] Three written quotes compared line by line
  • [ ] Written contract signed, with a payment schedule tied to progress

What if you cannot confirm the insurance?

Do not start work. If the certificate is missing, the named insured does not match, the policy dates do not cover the job, or the broker cannot confirm it, you have three sensible options:

  1. Ask the contractor to supply corrected documents before any work or deposit.
  2. Ask the contractor’s broker to issue a fresh certificate directly to you.
  3. Choose another contractor from your shortlist.

You should not be the one carrying the gap. Staged payments also protect you. The hiring guide above describes paying in stages, with about 10% down, stage payments and a 10% holdback. Alberta’s checklist also calls for a clearly itemized payment schedule. Whatever the province, your payment schedule should follow completed work, not run ahead of it.

Why itemized quotes help with verification

A line-by-line quote makes the insurance conversation easier because you can see what work is included, such as demolition, hauling, air testing and permits, and ask whether each is covered. Our guide to what a renovation quote breakdown includes shows what to expect. If you are hiring for your first project, how to choose a renovation contractor for the first time puts these checks into a full hiring process. For a larger job, also see our overview of the health and safety plan for renovation.

Hazardous materials raise the stakes

Older Ottawa homes can contain asbestos in vermiculite attic insulation or old flooring, lead paint, and hidden mould behind walls. Work that disturbs these materials is not an ordinary renovation task. When you hire for it, confirm that the contractor is licensed for that work and that the insurance covers it, and keep the testing and documentation that comes with the job.

Hazardous materials raise the stakes

Our published ranges for abatement work give a sense of scale. Testing and lab analysis runs $300 to $600, small Type 1 or 2 jobs run $1,500 to $3,500, and vermiculite attic removal runs $5,000 to $15,000. Whole-home or Type 3 work has no published price because it depends on scope. More detail is on our abatement page.

Our perspective

We have worked in Ottawa homes for more than 25 years, and the same thing comes up before almost every large job: homeowners want to know who is responsible if something goes wrong.

Our view is simple. A contractor who is properly licensed and insured has nothing to hide from these questions, and a homeowner who asks them is doing the right thing. We work as a licensed and insured contractor, and we give itemized quotes so you can see what each part of the job includes.

We also think hazardous material work should never be split carelessly across companies. When abatement, demolition and renovation sit under one roof, there is one team accountable for the sequence, the cleanup and the paperwork. That is why we do all three.

Ask every contractor on your shortlist the same questions, compare the answers, and choose the one who answers clearly. Our estimates come back within 24 hours, so you can keep that comparison moving.

Jason

Get an itemized quote for your Ottawa project

If you are planning abatement, demolition or a renovation in Ottawa or Renfrew County, we provide free estimates and itemized quotes, with a response within 24 hours. We handle air quality testing, permit management, debris hauling and post-job documentation as part of the work.

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See our renovation services and published price ranges, or contact HMJ Contracting to book an estimate.

FAQ

How do I verify a contractor’s insurance?

Ask for a certificate of insurance, check that the named insured matches the company on your contract, and review the coverage type, limit and dates. Then contact the insurer or broker on the certificate to confirm the policy is active today. Also check workers’ compensation coverage with the provincial board.

Do I need to check WSIB coverage for a home renovation in Ottawa?

Ontario’s government advises homeowners to check coverage by contacting the WSIB, since construction workers and independent operators must be covered. One industry guide notes that a clearance is not required when you hire directly for your own home, but asking for one still shows the firm is registered.

How much liability coverage should a contractor carry?

One industry guide gives $2 million in general liability as the common standard across provinces, and $5 million as a recommendation for major renovations. Ask your own insurer or broker what suits your project size.

What should I ask a contractor’s references?

Ask whether the job finished on time and on budget, how changes were priced, whether the crew cleaned up and fixed deficiencies, and what went wrong. End with whether they would hire the contractor again. Call at least three, including one from further back.

What if a contractor cannot show proof of insurance?

Do not sign or pay a deposit until you have valid documents confirmed by the broker or insurer. If they cannot be produced, move to the next contractor on your shortlist.

Sources

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