Definition

WSIB clearance certificate

A clearance certificate is confirmation from a workers’ compensation board that a business is registered and current on its premiums and reporting. Obtaining a valid clearance protects the party relying on it from being held liable for the other party’s unpaid premiums for the certificate’s validity period.

Reviewed

In Ontario the board is the WSIB; other provinces have their own equivalents with their own rules. The mechanism is the same everywhere: unpaid workers’ compensation premiums can attach to a party who ought to have obtained clearance and did not, which makes the certificate a genuine liability shield rather than paperwork.

Why it matters in construction especially

In construction the obligation is strongest. A principal who retains a contractor is required to obtain a clearance before work begins and to keep one in effect throughout, and starting without one is an offence for both parties. Any business acquiring or engaging trades work should treat clearance as a standing process, not a one-time check.

Sources

This definition is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Workplace Safety and Insurance BoardRegulator
    Clearance Certificate — Operational Policy Manual
    wsib.ca·Checked Aug 14, 2026
  2. 02
    Workplace Safety and Insurance BoardRegulator
    Clearance Certificate in Construction
    wsib.ca·Checked Aug 14, 2026
  3. 03
    Canada Revenue AgencyGovernment
    Selling a business
    canada.ca·Checked Aug 14, 2026
  4. 04
    Treadstone LawLegal commentary
    Employment Due Diligence Red Flags Before Buying an Ontario Business
    treadstonelaw.ca·Checked Aug 14, 2026

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