Guide · Contractors and WSIB
WSIB clearance certificates,
without the jargon.
Sooner or later a general contractor, property manager or commercial client asks you for a WSIB clearance before you start. Here is why they ask, who in construction has to carry WSIB coverage at all, when a small renovation business does not, and how the clearance itself works.
Published 2026-09-21 · Formory Group
The short answer.
In Ontario construction, WSIB coverage is compulsory for almost everyone who runs the business, not only for employees. WSIB's expanded compulsory coverage FAQ says people who own or run a business in construction, with or without employees, must have coverage.
A clearance certificate is WSIB's confirmation that a business is registered and up to date on premiums and reporting. It is free, it is valid for up to 90 days, and a principal who hires you for construction work is expected to get one before you start.
Who has to be covered.
WSIB's Expanded Compulsory Coverage in Construction policy treats independent operators, sole proprietors, partners and executive officers in construction as workers who need coverage. So a one-person roofing or painting business is covered by the rule even with no staff.
A partnership or corporation may exempt one partner or one executive officer, but only if that person does not do construction work. Occasional site visits are allowed as long as no work is done on site, and a declaration must be filed with WSIB.
Any employees you have must be covered regardless of which exemption applies to you as the owner.
The home renovation exemption.
There is one broad exemption that matters to small trades. Independent operators, sole proprietors, partners and executive officers are exempt from compulsory coverage if the business does exempt home renovation work only.
WSIB's conditions are strict. The work has to be on an existing private residence. You have to be hired and paid directly by the person who lives there, or will live there, or a member of their family. Work done as a subcontractor to a general contractor does not qualify, even if the house is an ordinary home.
The word "only" does a lot of work here. One commercial job, one new build, or one renovation subcontracted from a GC takes the business outside the exemption. If your work mix is changing, WSIB has a status questionnaire and it is worth completing before the first job that does not fit.
How clearance certificates work.
Under WSIB's Clearance Certificate in Construction policy, a principal who directly retains a contractor for construction work must get a clearance confirming the contractor is in good standing. The clearance must be in place before work starts and stay valid for as long as the contractor is working.
A clearance lasts up to 90 calendar days depending on when it was issued. WSIB's clearance FAQ says most expire on the 20th of February, May, August and November, and they renew automatically if the account stays in good standing.
Clearances cost nothing. According to WSIB's clearances page, businesses can find and download their own clearances online without logging in, and anyone can search for a registered business by name, phone, address or postal code. Most newly registered businesses that need a clearance at registration make an initial advance payment of $250, which is credited to the account.
Why GCs and property managers insist on it.
The reason is money. If a principal hires a contractor without a valid clearance, WSIB can hold the principal liable for the contractor's unpaid premiums and other amounts owed, up to the value of the labour portion of the contract. With a clearance in place, WSIB waives that right for the period the certificate covers.
Starting construction work without a clearance is also an offence, for both the principal and the contractor. WSIB's FAQ puts the practical result bluntly: without a clearance, the principal may refuse you entry to the job site.
Homeowners are in a different position. The policy does not apply to householders who hire a contractor directly for exempt home renovation work on the home they live in or will live in. A homeowner may still ask, and it is a fair question, but it is not the homeowner's legal duty in that case.
Keeping your clearance valid.
A clearance only exists while your account is in good standing, which WSIB defines as being up to date on payments and reporting. Miss a premium or a report and the next clearance may not be issued, which is exactly when a GC's site office will ask for it.
WSIB lets you sign up to receive your clearance by email each time one is created or renewed. Forward it to the clients who need it without being asked; it saves a phone call and makes you look organized.
If a clearance expires or is revoked, a new one is needed. And if you register to get work and later want to cancel, WSIB's policy requires coverage to stay in place for at least three months before you can request cancellation, apart from the initial partner or executive officer exemption.
What to say on your website.
If you are registered and in good standing, say so, and say that a clearance is available on request. A GC looking for a subtrade wants to know this before calling, and the About or contact page is where they will look. It sits well next to your licence or registration numbers; see ESA licence number rules if you are an electrician.
If you rely on the home renovation exemption, do not write "WSIB covered" or "WSIB insured" on the site. It is not true, and the first GC who searches the WSIB registry will find out. Say what you do instead: residential renovations hired directly by homeowners. That is honest, and it tells commercial visitors not to waste a call.
For the rest of a trade site, what belongs on a service business home page covers the basics, and websites for renovation contractors shows the trade-specific version.
General information, not legal advice. For your own coverage status, ask WSIB.
Questions
Straight answers.
Do I need WSIB if I am a sole proprietor with no employees in construction?
Generally yes. Sole proprietors and independent operators in construction must have coverage unless the business does exempt home renovation work only, hired and paid directly by the homeowner.
How long is a WSIB clearance certificate valid?
Up to 90 days. Most expire on the 20th of February, May, August or November and renew automatically while the account stays in good standing.
Does a homeowner need a WSIB clearance from their contractor?
Not for exempt home renovation work on their own home when they hire the contractor directly. The clearance obligation falls on principals in other construction arrangements.
Does a clearance certificate cost anything?
No, WSIB issues clearances free. Most new registrants who need one at registration make a $250 advance payment that is credited to their account.
Check yours
The same test,
on your address.
We do not guess and we do not send a report by email. Type the address, wait ten seconds, read what comes back. If your site is fine it will say so.
Start with a
straight answer.
Describe the business and where it works. We come back with what we would change, what it would cost and how long it takes — or with a reason not to bother.