Property managers ask me for a clearance letter before the first job. Homeowners can ask for the same letter, and it protects them too. I hold a WorkSafeBC account and send a clearance letter on request. This guide covers what the letter is, why it matters to you, how to get one, and the limits of what it proves.
What is a WorkSafeBC clearance letter?
It is a letter from WorkSafeBC about one business. WorkSafeBC says a clearance letter confirms a business is registered with it and paying its premiums. The letter carries a date. A status of active and in good standing holds up to the date shown in the body of the letter, so an old letter says little about today.
Every job I take gets a written scope before I start, so the price is agreed in advance and the list stays the list.
Want me to take this one on? My page on home repairs covers what the visit includes, what I hand off, and how I price it.
Do homeowners need a clearance letter before hiring a handyman?
WorkSafeBC recommends it. Its page for homeowners says that when you hire an independent business, you are its customer, not its employer. Before you hire, it says, make sure the business is registered and making its payments. The same page tells you to get a clearance letter for each contractor.
WorkSafeBC gives examples of an independent business. It can be a company with Inc., Co. or Ltd. after its name. It can be a person in the business of a service, such as painting, for many customers. It can also be a business that charges one price for materials and labour together.
Can I be liable if my handyman is not registered?
Yes, in two ways. The first is premiums. WorkSafeBC says that without a clearance letter, you could be held jointly liable for a contractor's unpaid premiums for the period they worked for you.
The second is when the person is not in business at all. WorkSafeBC says you may be an employer if you pay someone for a one-time job, like a neighbour paid to paint. Once that job reaches 24 total hours, counting every worker, you would have to register. Three workers at nine hours each is 27 hours.
One case is different. If the business has no workers and the owner does all the work, WorkSafeBC says coverage is optional for that owner. It suggests you talk about insurance with that person before the work starts.
How do I get a WorkSafeBC clearance letter?
WorkSafeBC says most clearance letters can be pulled online with its clearance letter application. The steps are short:
- Ask the contractor for their WorkSafeBC account number (six or nine digits), or their exact legal or trade name.
- Open the clearance letter application. The first step asks who wants the letter, and you can choose individual user.
- Enter your own name and address. They print at the top of the letter.
- Search for the business and save the letter as a PDF.
- Pull a fresh one when the job is done.
WorkSafeBC tells businesses to get a letter before and after they receive services. It also says a prime contractor's letter must be addressed to them to be honoured. So pull your own copy with your name on it, even if the contractor sends one. Some letters, such as one confirming a firm is not registered, can only be requested by phone or fax.
When I quote a job, ask me for the letter, and pull your own copy too. It is the same check whether the job is handyman repairs in Langley or home repairs in Abbotsford. For a strata or a managed rental, the letter goes to the building or the management company. My page on commercial handyman for property managers covers how I handle that. A strata may ask for the letter too, which my guide to strata renovation rules in BC covers.
What does a clearance letter prove?
It proves one thing: on the date in the letter, the business was registered and paying its WorkSafeBC premiums. It leaves out a lot that matters to a homeowner.
- It is not liability insurance. That is a separate policy that stands behind damage to your home. Ask for proof of it on its own.
- It does not show whether the owner bought Personal Coverage for themselves (see below).
- It says nothing about skill, a business licence, or trade certification.
- It goes stale. It speaks to the date printed in it, which is why you pull a second one at the end.
For the rest of the checklist, my guide to red flags in a handyman quote covers licences, insurance proof and GST numbers. What a handyman can legally do in BC covers which jobs need a licensed trade.
What is Personal Coverage for a sole proprietor?
A sole proprietor or partner may not be covered by the Workers Compensation Act if they are hurt at work. WorkSafeBC sells them Personal Coverage, which it used to call Personal Optional Protection. It is workplace disability insurance that pays health care, wage-loss and rehabilitation benefits. Sole proprietors, with or without workers, and partners can apply. An owner of an incorporated company cannot, because that owner counts as a worker of the company.
Why should you care? WorkSafeBC's page on hiring contractors is written for businesses. It warns that a proprietor who declines Personal Coverage is not covered as a worker, which could open the hirer to a lawsuit after an accident. WorkSafeBC says privacy law stops it from telling you who has bought it. You can ask the contractor for proof, and it is a fair question to ask anyone you hire.
