Rules checked: October 24, 2026, against WSIB’s published policy and guidance. This is general information, not legal or tax advice. Check your own situation with WSIB, your accountant or a lawyer.
Disclosure: TradesTally is written by Kris, who owns VB Concrete & ICF Structures, an Ontario concrete and ICF contractor.
If you work in construction in Ontario, sooner or later a general contractor, builder or property manager will ask you for your WSIB clearance. Some ask before they sign anything. Others ask when your first invoice lands, then hold your payment until they get it. If you hire subs yourself, you’re on the other side of the same rule: you need their clearance before they start.
This guide explains what a clearance certificate is, who has to get one, how long it lasts, how to get one (including as a brand-new business), and what you risk if you skip it. Everything below is drawn from WSIB’s own policy and guidance pages, linked throughout.
What a WSIB clearance certificate is
According to WSIB, a clearance is “a unique number issued by the WSIB to registered businesses, which shows that a business, contractor or subcontractor is registered and up-to-date with us, including keeping current with premium payment and reporting.” Only registered businesses in good standing can get one. (WSIB: Clearances)
In plain terms: a clearance is WSIB’s confirmation that you’ve registered, filed your premium reports, and paid what you owe.
Why the person hiring you cares
The clearance protects the person who hires you. WSIB’s construction policy says it issues a clearance “to relieve the principal of liability for unpaid premiums and other amounts the contractor owes the WSIB, for the validity period of the clearance.” Without one, the principal “may be liable for the contractor’s payment obligations to the WSIB, up to the value of the labour portion of the contract(s)” between them. (WSIB Operational Policy Manual: Clearance Certificate in Construction)
So when a GC refuses to pay you until they see a clearance, they aren’t being difficult. If you owe WSIB premiums and they paid you without a clearance on file, WSIB could come after them for your unpaid premiums, up to the labour portion of the contract.
Who needs a clearance in construction
WSIB’s policy uses two terms you’ll see often:
- Principal: “A person or business entity awarding or letting a contract to a contractor.”
- Contractor and sub-contractor: “A person or business entity providing contractual services to a principal.” The policy explicitly says the relationship includes a contractor hiring a sub-contractor, so the GC is the principal to its subs, and a sub is the principal to its own sub-subs.
The core rule is short:
“A principal who directly retains a contractor to perform construction work must obtain a clearance certificate … that confirms the contractor is in good standing with the WSIB. The principal and contractor must ensure that a clearance is obtained before the construction work begins and that a clearance remains in effect for the entire time the contractor is performing the work.”
Construction work here means work in the industries listed in Class G – Construction of Schedule 1 (O. Reg. 175/98) and/or business activities in Class G of WSIB’s Employer Classification Manual. Concrete, foundations, framing, roofing, general contracting and most other building trades fall in Class G.
So, in practice:
| You are… | What you need |
|---|---|
| A GC hiring a concrete sub | The sub’s clearance before they start, kept current for the whole job |
| A sub hired by a GC | Your own clearance, valid for the whole time you’re on site |
| A sub hiring your own sub-sub | Their clearance, same rules: you’re now the principal |
| A builder or developer hiring trades directly | Each directly hired contractor’s clearance |
The home renovation exception
The policy does not apply to:
- householders who live in (or will live in) a private residence and directly hire a contractor for exempt home renovation work only, or
- contractors directly hired by those householders (or their family members) when the contract is for exempt home renovation work only.
The key words are directly retained by the householder and exempt home renovation work. If a homeowner hires a GC and the GC hires you, you’re working for the GC, not the householder. Check WSIB’s policy 12-01-06, Expanded Compulsory Coverage in Construction, for what counts as exempt home renovation work before relying on this exception.
Independent operators: you probably still need coverage
Many one-person trade businesses assume that because they have no employees, WSIB doesn’t apply. In construction, that’s usually wrong.
WSIB says that if you’re a sole proprietor or the sole executive officer of a corporation, it considers you an independent operator in construction if you:
- perform or manage Class G construction work,
- have no employees,
- work as a contractor or subcontractor for more than one person during an 18-month period, and
- report as “self-employed” to a government agency like the CRA.
In that case, WSIB says, “under the Workplace Safety and Insurance Act, you are required to have coverage with the WSIB and will have to report your earnings and pay premiums.” (WSIB: Independent operators in construction)
The exception is narrow: “If your business only does home repairs or renovations on private residences where you are hired and paid directly by the homeowner or resident, then you do not need to be covered by us. However, you must still have coverage for your employees.”
WSIB’s general clearances page also notes that independent operators outside construction might not have to register and so wouldn’t be eligible for a clearance. That’s the opposite of the construction rule, which trips people up when they read general advice online. (WSIB: Clearances)
What you need to be “in good standing”
WSIB will only issue a clearance if your account is in good standing. The construction policy lists the requirements:
- you have an open account with WSIB;
- you’ve completed and provided all required registration information and documents;
- your declared business activities are in the proper classification codes;
- you’ve reported appropriate premiums based on actual or estimated insurable earnings for all past reporting periods;
- all required Premium Remittance and Reconciliation Forms are filed; and
- all premiums and other amounts owing are paid up to date when the clearance is requested, including interest, service charges, experience-rating surcharges, premium adjustments and other non-compliance charges.
If you have more than one WSIB account, each one must meet these requirements before a clearance is issued for any of them. (WSIB policy)
Practical takeaway: the most common reason a small contractor can’t get a clearance is a missed or late premium report or an unpaid balance. Getting your reporting and payments on a calendar (and keeping them there) is the whole game.
If you owe money or are disputing an amount
The policy gives a few routes:
- Amount owing: a clearance may still be issued if the principal pays the amount owing on your behalf (as determined by WSIB), or if an approved payment plan is in place and payments are being made.
- Disputed amount: if you’re appealing an amount, a clearance may be issued if you post a letter of credit for the disputed amount and otherwise meet good-standing requirements.
- Closed account: even if your account is closed, you or the principal can request a clearance for the contract period; WSIB may issue a letter relieving the principal of liability in some cases.
How long a clearance lasts
WSIB’s policy says a clearance “is valid for up to 90 calendar days, depending on the date that it is issued, and is renewable. A new clearance must be obtained if the original expires or is revoked.” (WSIB policy)
WSIB’s clearances page adds that a clearance is created automatically for your business as long as you’re up to date on payments and reporting, and that “this clearance number is valid for all your contracts and is valid for up to 90 days.” (WSIB: Clearances)
Two things follow from “up to 90 days”:
- A clearance can expire mid-job. If your foundation job runs from spring into summer, the clearance you showed on day one may not cover the end of the job. Both principal and contractor are responsible for keeping one in effect for the whole time the work is being done.
- One clearance covers all your contracts. You don’t need a separate one per job. You give the same current clearance to every GC you work for.
How to get a clearance
If you’re already registered and in good standing
From WSIB’s clearances page:
- A clearance is created automatically while your account is up to date.
- You can request a clearance immediately through WSIB’s online services.
- If you request one by email, WSIB says you’ll receive it within three to five business days.
- You can sign up to automatically receive your clearance by email each time one is created or renewed, using “My Email Notifications” in the clearance application in WSIB’s online services.
Tip: turn on the automatic email. Then forward each new clearance to the GCs you’re working for as soon as it arrives, before their accounts-payable person has to chase you.
If you’re hiring subs: checking their clearance
WSIB offers two online options:
- Quick access clearances, with no log-in required, to find, view and download clearances.
- Logged-in online services, where you can create a list of contractors you need clearances for, see clearance history, search for current clearances and get reminder emails.
If you use subs regularly, the logged-in contractor list with reminders is the easiest way to avoid paying someone whose clearance quietly lapsed.
If you’re a brand-new business
WSIB’s construction policy says that before a clearance is issued for a newly registered contractor, the contractor must make an advance payment in an amount WSIB determines. WSIB’s clearances page says that “most newly registered businesses that need a clearance certificate at the time of registration make an initial advance payment of $250,” which is credited to your account and applied to future premiums. (WSIB: Clearances; WSIB policy)
So if you’re starting a construction business, register with WSIB and get your first clearance before your first job with a GC. Many GCs won’t let you on site without it.
Keep records for three years
Both sides have a record-keeping duty: “Principals and contractors must keep record of clearances for at least three years from the date they were obtained.” (WSIB policy)
A simple way to do it:
- Save each clearance PDF in a folder per subcontractor (or per GC you work for), named with the date.
- Keep a spreadsheet with: sub name, WSIB account/clearance number, date issued, expiry date, and the jobs they’re on.
- Before every payment run, check that every sub you’re paying had a valid clearance for the period of work being paid.
What happens without a clearance: the offences
WSIB’s policy is direct: “Starting the construction work without a clearance is an offence for both the principal and contractor.”
It lists the specific offences under the Workplace Safety and Insurance Act, 1997.
Principals are guilty of an offence if they:
- don’t obtain a clearance before the contractor begins construction work;
- fail to renew the clearance if it expires or is revoked;
- permit a contractor to begin construction work during a period when the principal knows no clearance is in effect; or
- don’t keep record of clearances.
Contractors are guilty of an offence if they:
- fail to tell the principal that a clearance has been revoked; or
- perform construction work for the principal without a clearance.
(WSIB policy; penalties are set out in WSIB policy 22-01-05, Offences and Penalties – General.)
On top of the offence, there’s the money risk described earlier: without a clearance, the principal may be on the hook for the contractor’s unpaid WSIB premiums, up to the labour portion of the contract.
A practical clearance checklist for small contractors
When you’re the sub:
- Register with WSIB before your first construction job (and pay the advance payment if required).
- Turn on automatic clearance emails in WSIB online services.
- File every premium report and pay on time. A missed report can block your clearance.
- Send your current clearance with your first invoice on every job, and again whenever a new one is issued.
- If your clearance is revoked, tell every principal you’re working for. Failing to do so is an offence.
When you’re the principal (hiring subs):
- Get each sub’s clearance before they start work.
- Track expiry dates. “Up to 90 days” means you’ll need renewals on longer jobs.
- Don’t let a sub start, or keep working, during a period you know they don’t have a clearance.
- Check clearances before each payment run.
- Keep clearance records for at least three years.
Frequently asked questions
Is a WSIB clearance the same as WSIB coverage?
No. Coverage means you’re registered and paying premiums. A clearance is a certificate showing that your account is in good standing at a point in time. You need coverage (and good standing) to get a clearance.
How long is a WSIB clearance good for?
Up to 90 calendar days, depending on when it was issued. It’s renewable, and a new one is generated automatically while your account is up to date. (WSIB)
I’m a one-person operation with no employees. Do I need WSIB?
In construction, usually yes. If you do Class G work, have no employees, work for more than one person in 18 months and report as self-employed, WSIB considers you an independent operator who must have coverage, unless you only do home repairs or renovations where the homeowner hires and pays you directly. (WSIB)
How fast can I get a clearance?
Immediately through WSIB’s online services if your account is in good standing; three to five business days if you request by email. (WSIB)
Does a homeowner need my clearance?
Not for exempt home renovation work where the householder hires you directly. The clearance policy doesn’t apply in that case. For other work, check WSIB’s policy. (WSIB policy)
Sources
- WSIB, Clearance Certificate in Construction (Operational Policy Manual; applies to decisions on or after January 1, 2020): https://www.wsib.ca/en/operational-policy-manual/clearance-certificate-construction
- WSIB, Clearances (updated May 5, 2026): https://www.wsib.ca/en/businesses/premiums-and-payment/clearances
- WSIB, Independent operators in construction: https://www.wsib.ca/en/independent-operators-construction
Not legal or tax advice. WSIB rules and policies can change. Confirm your obligations directly with WSIB or a professional adviser before you rely on this guide.