Damage or Injury

Accidents or Injuries in Your Home

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Damages to Your Home

Contractors who operate their business properly have comprehensive business insurance to cover their liability in the event that they damage a customer's home. If the contractor is working underground, they likely don't and you would have to rely on their willingness and ability to pay damage costs. And, depending on your coverage, your own homeowners insurance policy may or may not cover such damage.

Injured Workers

Most contracting companies are required by law to have Workers' Compensation coverage to protect workers who get injured. In some provinces, self-employed individuals can "opt out", but they should then obtain private disability insurance coverage to protect against work-related injury. If you hire someone who is not enrolled in Workers' Compensation, you could potentially be held responsible for medical and rehabilitation costs if that person is injured.

Protection Measures

Fortunately, there are measures in place to protect you, providing you avoid an underground deal. Municipal building codes, permits and inspections provide checks on the construction process. Provincial regulations govern the health and safety of workers as well as hazards related to equipment and chemical use.

You can help ensure you and your family are protected by insisting on a written contract covering all aspects of the project and warranty, and requiring proof of proper business practices including contractor liability insurance, Workers' Compensation coverage (or equivalent private disability coverage for exempt workers), a lien holdback provision, and clear responsibility for compliance with all other applicable laws and regulations.

You should also talk with your insurance company before the work begins to ensure your homeowner policy covers construction-related risks.