How to Get a General Contractors License in Ontario

Every professional general contractor providing their skills and services in Ontario needs a general contractor’s license. However, obtaining a general contractor license in Ontario requires skilled trades professionals to take several steps to qualify for one. The benefits of obtaining this license are numerous, and it’s a crucial step in your career progression.

Let’s review why general contractors need a license in Ontario and the steps they need to take to obtain a license and become a licensed contractor in Ontario.

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What Is a General Contractor and What Do They Do?

A general contractor is a skilled trades professional managing a construction project.

They coordinate all aspects of a project, ensuring it is completed on time and on budget, meets high-quality standards, and adheres to mandated safety and building codes. General contractors work on a variety of projects, including the construction of residential and commercial buildings, renovations to existing buildings, and oversight of infrastructure projects.

General contractors’ responsibilities include:

• Project management
• Hiring subcontractors
• Obtaining permits to comply with local building codes
• Managing a project’s budget
• The procurement of raw materials
• Ensuring safety compliance on a job site
• Ensuring construction work meets industry standards and specifications
• Communicating regularly with their customers, subcontractors, and other stakeholders involved in a project

Why Do General Contractors in Ontario Need a License?

An Ontario general contractor license is not just a formality, but a necessity. It is the official recognition by the province that you have the requisite skill, experience, and training to fulfil the job responsibilities. 

Skilled tradespeople can specialize in a variety of roles. Being a general contractor is one of them. 

General contractors need to be licensed for a variety of reasons. These include:

• Regulatory and legal compliance: Contractors must adhere to municipal, provincial, and federal laws and regulations to ensure they meet safety and industry standards.

• Professional credibility: An Ontario contractor license validates a contractor’s skills, training, and professionalism. It also validates your knowledge, expertise, and commitment to high-quality work, which builds trust with customers.

• Quality assurance: Verifies your dedication to quality work, continuous education of leading-edge standards and upskilling, and industry best practices. It inspires confidence in your abilities to maintain high standards while adhering to project and budget requirements for every job.

• Opportunity to bid on projects: To successfully bid on new projects, stakeholders and customers typically require contractors to be licensed and insured. It is essential if you’re bidding on government contracts.

Resources for General Contractors in Ontario

There are many resources available for new and experienced general contractors to access freely to learn more about what they need to do to ensure they are licensed and follow all applicable regulations. Here are some to explore:

• BizPaL (Business Permit and License) – BizPaL is an online portal that helps contractors in any province or territory find the licenses they need and be aware of the regulations that can affect their businesses. It helps business owners discover the licensing they require and how to obtain it.

• Technical Standards and Safety Authority (TSSA) – The TSSA is a not-for-profit organization that administers technical safety regulations as mandated by the Ontario government. It contributes to the development of safety codes and regulations, oversees training institutions that certify tradespeople, conducts inspections to address safety issues, and more.

• Skilled Trades Ontario – Skilled Trades Ontario is an agency of the Ministry of Labour, Immigration, Training, and Skills Development responsible for the province’s apprenticeship and skilled trades certification programs.

• Home Construction Regulatory Authority (HCRA) – The HCRA is a not-for-profit corporation that regulates new home builders and vendors in Ontario. 

• The Workplace Safety and Insurance Board (WSIB) Ontario – Contractors, subcontractors, skilled tradespeople, and sole proprietors in the construction industry in Ontario are required to register with the WSIB. There are some exceptions, but the WSIB Ontario provides compulsory insurance coverage for general contractors, construction business owners, and their employees who are injured on the job. It provides wage-loss benefits and medical coverage to help injured workers return to work after suffering a work-related injury or illness.

Do General Contractors Need Liability Insurance?

Whether or not your general contracting business is registered with the WSIB Ontario or other provinces and territories, all general contractors, subcontractors, and skilled trades workers need liability insurance.

A customized contractor liability insurance policy protects your finances, reputation, and livelihood from expensive damages and losses to customers’ properties, accidents that injure third parties, and legal threats against you for substandard work or other allegations of wrongdoing. Construction and contracting work involves many risks. 

WSIB Coverage vs Contractor Liability Insurance: What’s the Difference?

It’s important to understand the distinction between WSIB coverage and contractor liability insurance. 

While WSIB coverage provides financial assistance to construction professionals who are injured on the job, a general contractor’s insurance policy covers third-party bodily injury and property damage claims.

WSIB coverage focuses on workers’ health and wage replacement if they are injured on the job. 

General contractor liability insurance protects construction business owners and contractors from financial and legal risks following an injury to a customer or passerby and damage to a customer’s property or other properties resulting from their operations.

What Does General Contractor Insurance Include?

A comprehensive general contractor insurance policy features various coverages to protect contractors from the many risks they face. A customized policy of this type may include:

• General Liability Insurance – General liability insurance covers third-party bodily injury and third-party property damage claims against you. For example, if a customer or passerby is injured on a job site and requires medical attention, or you accidentally damage a customer’s property while working, general liability insurance is designed to cover those expenses.

• Professional Liability Insurance – If your contracting business provides its customers with advice or consulting services, you need professional liability insurance. Also called errors and omissions (E&O) insurance, professional liability insurance covers you from allegations of professional negligence, faulty work, misconduct, and failing to deliver a service as promised.

• Tools and Equipment Insurance – This type of insurance covers your costs if your portable tools and equipment, which you use for various projects, are damaged by fire, water, natural disasters, vandalism, or are stolen.  

• Pollution Liability Insurance – Construction and renovation projects typically create pollution. If a project you oversee causes environmental damage or health-related illnesses to third parties, you could be sued. Pollution liability insurance exists to protect contractors against environmental liabilities associated with third parties’ exposure to pollution while working on a covered job site. 

• Builder’s Risk Insurance – Also called construction liability insurance or course of construction insurance, builder’s risk insurance protects property owners, contractors, and the job sites, materials, and buildings under construction from damages and losses while work is underway.

• Commercial Auto Insurance – Commercial auto insurance covers damages to business vehicles and trailers. There are significant differences between commercial auto insurance and private passenger car insurance. Any vehicle used to transport construction materials, tools and equipment, packaged goods or people needs a commercial auto policy.

A contractor insurance policy may also include these additional coverages:

• Completed Operations Liability Insurance – Covers a contractor’s liabilities after a project is finished if allegations or lawsuits arise accusing you of property damage or if an injury to a third party occurs after completing a construction or renovation build.

• Installation Floater Insurance – Installation floaters protect a contractor’s investments in the materials they acquire to be installed at a job site. They cover property or materials at a temporary site, while in transit, or during the installation process until they are installed.

• Leased, Rented, Borrowed Equipment Insurance – This type of insurance covers the equipment you lease, rent, or borrow for a project if it is damaged, lost, or stolen while under your care, custody, and control.

How to Get Low-Cost General Contractor Insurance in Ontario

Zensurance helps tens of thousands of Canadian general contractors, subcontractors, and skilled tradespeople get the customized, low-cost contractor liability insurance they need to protect their finances and careers.

Fill out our online application for a free quote in less than five minutes.

Our knowledgeable team of licensed insurance brokers can help you obtain the coverage you need and customize it to suit your specific requirements. 

Our brokers can answer your questions, provide advice on the coverages and coverage limits your policy may need, and issue your policy documents and a certificate of insurance so you can focus on building the future.