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Abstract: The Workplace Safety and Insurance Board (WSIB) Certificate of Clearance is a critical regulatory instrument in Ontario, Canada. Often informally called the "WSIB certificate," this document serves as proof of a business’s compliance with the Workplace Safety and Insurance Act, 1997 . This paper examines the purpose, legal implications, and operational necessity of the certificate, focusing on its role in supply chain liability, independent operator status, and mandatory coverage within the construction sector.
Under Section 90 of the Workplace Safety and Insurance Act, 1997 , the WSIB has the authority to collect unpaid premiums from any party in a construction project’s contracting chain. The Clearance Certificate acts as a legal shield. If a principal contractor obtains a valid certificate from a subcontractor, the principal is generally protected from liability for that subcontractor’s WSIB debts. wsib certificate
In Ontario, most employers are required to register with the WSIB and pay insurance premiums. However, the construction industry operates under a unique liability model where general contractors and project owners are potentially liable for the unpaid premiums of any subcontractor in their chain. The WSIB Certificate of Clearance—formally known as a Clearance Certificate —is the primary mechanism to mitigate this risk. Contrary to popular belief, it is not a general "license to operate" but a dynamic snapshot of a firm’s payment compliance. Abstract: The Workplace Safety and Insurance Board (WSIB)
