How do I verify that a fence contractor has WorkSafeBC coverage?

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Vancouver Fence Builders · Accepted Answer

You can verify a fence contractor's WorkSafeBC coverage by requesting a clearance letter through WorkSafeBC's free online Clearance Letter application at worksafebc.com — the process takes just a few minutes and gives you a definitive answer about whether the contractor is registered and in good standing. This is one of the most important steps you can take before hiring any contractor in BC, and it's completely free.

A WorkSafeBC clearance letter confirms two things: that the contractor's business is registered with WorkSafeBC, and that they are current on their premium payments. The letter states whether the firm is "active and in good standing" — meaning they've been reporting payroll and paying their workers' compensation assessments as required. If the firm is not in good standing, the letter will indicate that premiums are owing, which means the contractor may not have valid coverage for their workers.

Here's how to get a clearance letter step by step:

Visit WorkSafeBC's Clearance Letter web application (accessible through worksafebc.com under Insurance > Clearance Letters). You'll need the contractor's business name or their WorkSafeBC account number. Enter the contractor's information, specify that the letter should be addressed to you (this is important — a clearance letter must be addressed to the hiring party to be valid), and submit the request. The system will generate a clearance letter that you can view and print immediately. The entire process takes less than 5 minutes.

Understanding the clearance letter results is straightforward. A letter showing "active and in good standing" means the contractor is registered and current on premiums up to the date indicated on the letter. Contractors with an excellent compliance history may qualify for GoldStar clearance status, which means they've had a good track record of reporting payroll and paying premiums, and their account has been active for at least 24 of the last 36 months. GoldStar status provides advance clearance, typically to the start of the next quarter, giving you additional confidence that coverage will remain in effect during your project.

If the clearance letter shows the firm is "not in good standing" or indicates that assessments are owing, proceed with extreme caution. A contractor who is behind on WorkSafeBC premiums may not have valid workers' compensation coverage, which means that if one of their workers is injured on your property, you could be held financially responsible for the worker's medical costs, wage loss benefits, and rehabilitation under the BC Workers Compensation Act.

Request clearance letters at two key points — before the project starts and after it's completed. The pre-project clearance confirms coverage when you hire the contractor. The post-project clearance confirms that coverage was maintained throughout the work period. If the post-project clearance shows the contractor fell behind on premiums during your project, WorkSafeBC may assess you (the property owner) for the unpaid premiums related to work performed on your property. This sounds harsh, but it's how the system works — and it's why verification matters.

Beyond the clearance letter, ask the contractor directly about their WorkSafeBC registration. A legitimate fence contractor in Metro Vancouver will know their WorkSafeBC account number, understand the clearance letter process, and have no hesitation about providing verification. Red flags include: the contractor says they're a "sole proprietor" and don't need WorkSafeBC (some sole proprietors with no employees are exempt, but they should still be able to explain their status clearly); the contractor says their coverage is "through their insurance" (WorkSafeBC is separate from CGL insurance — they are not interchangeable); or the contractor becomes evasive or defensive when you ask about coverage.

Important distinction: WorkSafeBC coverage and Commercial General Liability (CGL) insurance are different things. WorkSafeBC covers worker injuries — if an employee is hurt on the job, WorkSafeBC pays for their medical treatment and lost wages, and protects you from being sued by the injured worker. CGL insurance covers property damage and third-party injuries — if the contractor damages your neighbour's property or a passerby trips over construction materials. You need to verify both before hiring a fence contractor. A contractor with WorkSafeBC coverage but no CGL insurance still leaves you exposed to property damage claims, and vice versa.

The few minutes it takes to check a clearance letter can save you from thousands of dollars in unexpected liability. It's free, it's fast, and any contractor worth hiring will support you doing it. If you need help finding fully covered fence contractors in Metro Vancouver, Vancouver Fence Builders can match you with professionals who carry proper WorkSafeBC coverage and CGL insurance.

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