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.
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.
- 01Workplace Safety and Insurance BoardRegulatorClearance Certificate — Operational Policy Manual
- 02Workplace Safety and Insurance BoardRegulatorClearance Certificate in Construction
- 03Canada Revenue AgencyGovernmentSelling a business
- 04Treadstone LawLegal commentaryEmployment Due Diligence Red Flags Before Buying an Ontario Business
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