Workers' Compensation provides workers with fast access to financial benefits and rehabilitation if they are injured while on the job. Workers' compensation programs operate provincially, and enrollment is mandatory for most workers and employers. In some provinces, enrollment is voluntary for self-employed individuals who do not have employees.

As a homeowner, you are normally not a party to the Workers' Compensation program-it involves the contractor you hire and their employees.

However, in some cases and in some provinces, you may face a financial risk if the contractor you hire is not complying with Workers' Compensation rules. This is more likely to be the case if you do not have a written contract with the person you hire establishing that they are in business rather than employed directly by you.

For instance, in British Columbia, if a homeowner hires someone who is operating "under the table" and not enrolled in Workers' Compensation as required, the homeowner can be held financially responsible should that person be hurt while working on their property.

To avoid such financial risks, ask any contractor you plan to hire to give you a Letter of Clearance from your province's Workers' Compensation program proving they are properly enrolled. If your province allows exemptions for self-employed workers, ask for a letter from the program stating that the contractor has been exempted.

In the event that you hire someone who is not required to carry Workers' Compensation coverage, it may be wise to contact your homeowners insurance provider. You need to be certain that you are properly protected from personal injury lawsuits if this person gets injured while working on your property.

For information on how to contact the Workers' Compensation program in your province or territory, click HERE.