What if a contractor accidentally damages your property or your neighbor's property? What if construction work on your property leads to an injury? In such situations, unexpected expenses can arise.

That's why it's crucial to hire contractors with appropriate business insurance that covers Workers' Compensation and General Liability Insurance specific to British Columbia.

Workers' Compensation Insurance:
Workers' Compensation Insurance is a Provincial Government program that provides financial support and rehabilitation for workers injured on the job. Contractors must register in the specific provinces where they operate. For example, if a contractor has an office in Alberta but is working in British Columbia, they must be registered with WCB Alberta and also register with WorkSafeBC, paying premiums for their employees involved in work carried out in British Columbia.

Although homeowners usually don't have to worry about Workers' Compensation, failure by a contractor to comply with the rules and a lack of a written contract establishing them as an independent business may pose financial risks. For example, if a homeowner hires an uninsured contractor and a worker gets injured on their property, the homeowner may be held financially responsible.

To mitigate these risks, ask for a Clearance Letter from WorkSafeBC to confirm registration and premium payments.  If the contractor is registered but fails to meet their premium requirements, you could be liable for insurance premiums. Refer to the Contractors and Subcontractors section of WorkSafeBC for more details.

In BC, there are exemptions for self-employed workers and you should request a letter stating the contractor's exemption status and familiarize yourself with WorkSafeBC's guidelines on Hiring Someone to Work in Your Home. 

If you hire a contractor not required to have Workers' Compensation coverage, check if your homeowners' policy protects you against personal injury lawsuits. Consider increasing your coverage if necessary.

At Birdhouse Roofing Ltd, employee safety is a top priority. We are registered and compliant with WorkSafeBC. Find our clearance letter here for your peace of mind.

General Liability Insurance:
General Liability Insurance is essential for contractors and should include at least $2 million in coverage. It typically covers (and more):

• Third-Party Bodily Injury: Medical expenses, legal fees, and potential settlements resulting from injuries caused by the contractor's activities or negligence.

• Property Damage: Costs of repairs or replacement if the contractor damages someone else's property during their work.

• Personal Injury: Coverage for claims related to defamation, slander, or invasion of privacy.

• Products and Completed Operations: Protection against claims if the contractor's work or products cause injury or damage after the project is completed.

While homeowners may assume their insurance covers such situations, coverage can vary significantly. Policies often have limitations, only covering specific perils while excluding others.

For peace of mind, request a Certificate of Insurance as part of your contract to ensure proper coverage is in place.

At Birdhouse Roofing Ltd, protecting you and your property is our priority. We're insured with $3 million in Commercial General Liability Insurance. More details can be found here.