Workers' Compensation Coverage
Workers' Compensation gives workers injured on the job financial support and, if required, pays for their rehabilitation. Workers' Compensation programs operate provincially, and enrolment is mandatory for most workers and employers. Homeowners usually don’t have to think about Workers' Compensation, which is the responsibility of the contractor they hire.
However, if the contractor you hire is not complying with Workers' Compensation rules, you may face a financial risk - especially if you do not have a written contract that establishes that the contractor is in business rather than being employed directly by you.
For example, if a homeowner in British Columbia hires someone "under the table" who is not enrolled in Workers' Compensation, the homeowner can be held financially responsible if that person is hurt while working on the homeowner’s property.
How do you mitigate risks? Ask your contractor for a Letter of Clearance from your province's Workers' Compensation program. If your province allows exemptions for self-employed workers, ask for a letter from the program stating that the contractor has been exempted.
If you hire a contractor who is not required to have Workers' Compensation coverage, find out if your homeowners’ policy protects you against a personal injury lawsuit. If not, consider increasing your coverage.
For more information, contact your provincial Workers’ Compensation program.