“Licensed and Insured” Is Not a Qualification. Here Is What to Ask For Instead.
Three documents, all verifiable by you, none of them the word on the van.
In short
There is no single contractor licence in Ontario. When an ad says licensed, it usually means a municipal business licence — a fee paid to operate in that city. It says nothing about whether anyone holding a tool is qualified.
Insured usually means liability insurance: a private policy that can be expired, cancelled or too small for your job. Neither word is regulated in advertising the way people assume.
What does mean something: a WSIB clearance number you verify yourself, a certificate of insurance with a coverage amount and an expiry date, and for a compulsory trade, the certificate of qualification in the public register. All three are checkable without asking the contractor’s permission.
The three documents, and who issues them
Print this row of the table and you have done more diligence than most homeowners manage.
| Document | What it proves | How you check it |
|---|---|---|
| WSIB clearance | The business is registered and current on premiums and reporting | Quick access clearances on wsib.ca — no log-in required |
| Certificate of liability insurance | A policy exists, for how much, until when | Ask for the certificate, then call the broker named on it |
| Certificate of qualification | The tradesperson is certified in a compulsory trade | The public register at Skilled Trades Ontario |
| Municipal business licence | A fee was paid to operate in that city | The city’s own licence lookup — useful, but the weakest of the four |
What a WSIB clearance is, and how to check it
A clearance is a unique number the WSIB issues to a registered business, showing it is registered and up to date on premium payment and reporting. Only a business in good standing can obtain one, which is what makes it worth asking for. It is valid for up to 90 days.
Where you directly retain a contractor for construction work, the clearance is meant to be obtained before work begins and to remain in effect for the whole time the contractor is on the job.
The practical part: the WSIB offers quick access clearances with no log-in. Ask for the legal business name and the clearance number, then look it up yourself. A screenshot forwarded by the contractor proves nothing — the point of a public register is that you do not have to trust the person being registered. Same principle as checking a trade licence.
The exemption nobody mentions
Here is where most articles on this subject are simply wrong. A contractor with no WSIB coverage is not automatically breaking the law.
Individuals, partnerships and corporations performing home renovation work only, who are hired and paid directly by the homeowner or resident, are exempt from expanded compulsory coverage in construction. Someone running a home renovation business with employees must register to insure the employees, but is exempt for themselves.
The WSIB is equally plain about the consequence: a person who is exempt is not covered and is not entitled to any benefits. They may buy optional insurance, and many do not.
So the honest question is not “are you WSIB covered?” but “if you are hurt in my house, who pays?” If the answer is nobody, that risk has quietly moved to you — and it is worth one call to your own home insurer before the work starts.
Reading a certificate of insurance
Four things on it matter, and only four:
Red flags
What to do next
Before you sign anything, send one message: “Please send your legal business name, WSIB clearance number and a current certificate of insurance.” Then verify the clearance yourself on the WSIB site and call the broker. Fifteen minutes, no cost, and it changes who carries the risk.
Compare home services and renovation companies on Ontario24 and contact them directly. Ontario24 is a classified directory — we help you find and compare, and we do not vet anyone, which is exactly why this page exists. Also useful: how to choose a contractor and the 10 per cent rule.
Before you call anyone, it helps to know what this job should cost and what the next one will. What things cost in Ontario in 2026 puts 75 service prices in one table.
Frequently asked questions
Less than the phrase suggests. There is no single licence that covers contractors in Ontario. “Licensed” most often means a municipal business licence, which confirms a business paid a fee to operate in that city — not that anyone on the crew is qualified. “Insured” usually means liability insurance, which is a private policy that can be cancelled, expired or limited.
Three documents. A WSIB clearance number, which you can verify yourself. A certificate of liability insurance naming the coverage amount and the expiry date. And, for a compulsory trade such as electrical or plumbing, the tradesperson’s certification, which you can check in the Skilled Trades Ontario public register.
A unique number the WSIB issues to registered businesses showing they are registered and current on premiums and reporting. Only a business in good standing can obtain one, and it is valid for up to 90 days. If you directly retain a contractor for construction work, the clearance is supposed to be in place before work begins and to stay in effect for the whole job.
Yes, and it takes a minute. The WSIB offers quick access clearances with no log-in required, so you can find, view and download a contractor’s clearance without going through them. Ask for the legal business name and the clearance number, then verify it rather than accepting a screenshot.
Often, yes — and this is the part that surprises homeowners. Individuals, partnerships and corporations doing home renovation work only, hired and paid directly by the homeowner, are exempt from compulsory coverage. A business with employees must insure the employees but is exempt for the owner. The exempt person is not covered and is not entitled to any benefits.
They have no WSIB benefits to claim, which is precisely the situation in which a homeowner ends up facing a claim. Your own home insurance may or may not respond, depending on wording and on whether the work was permitted. Ask your insurer before the work starts rather than after.
No. A municipal licence is an administrative permission to operate, not a statement about workmanship. For compulsory trades the meaningful check is the certificate of qualification; for everything else it is references, a written contract and a written estimate.
Sources and how current this is
Checked 18 September 2026. What a clearance is, that only a business in good standing can obtain one, the 90-day validity, the requirement to have it before construction work begins and for the duration, and the availability of quick access clearances without a log-in come from the WSIB. The home renovation exemption — individuals, partnerships and corporations doing home renovation work only, hired and paid directly by the homeowner, and the statement that an exempt person is not covered and not entitled to benefits — comes from the WSIB’s questions and answers on expanded compulsory coverage in construction. Certification in compulsory trades is administered by Skilled Trades Ontario. Municipal business licensing differs by city. Nothing here is legal or insurance advice, and what your own home policy does when a worker is injured on your property depends on its wording — ask your insurer. Ontario24 is a classified directory and does not verify, licence or insure anyone.