WCB PEI clearance letters: check before work begins

WCB PEI's advice is in the title of its own notice: check for clearance before work begins. The check takes minutes and moves the risk of a contractor's unpaid assessments back where it belongs.

The risk

WCB PEI says a principal employer may be liable to pay assessments owed by the contractor and subcontractors if the contractor's account is in default.

What a clearance letter confirms

A clearance letter is WCB's confirmation that the contractor or subcontractor is registered and its account is in good standing.

Without a clearance letter

If you hire a subcontractor without a clearance letter, WCB's guidance says you are responsible for including the labour portion of the contract in your own assessment.

Independent operators

If you hire an independent operator who does not have WCB personal coverage, you may be exposed to a lawsuit if they are injured at work. Ask for a clearance letter that shows the person's status.

How to get one

Clearance letters can be requested online through WCB's clearance request tool, which does not require an Online Services account, or through Employer Services.

Prevention Checklist

• Request a WCB clearance letter before work begins.
• Check again before final payment on longer jobs.
• Report the labour portion yourself if you go ahead without clearance.
• Ask independent operators about WCB personal coverage.
• Keep the letters with the contract.

References

1. Workers Compensation Board of PEI. Check for WCB clearance before work begins, Web page, Principal liability. Accessed 2026-11-01.
2. Workers Compensation Board of PEI. Clearance Letter Request, Web page, Online request. Accessed 2026-11-01.
3. Workers Compensation Board of PEI. Information For Employers, Web page, Clearance definition; labour portion. Accessed 2026-11-01.

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