WorkSafeBC clearance letters: how to avoid paying a contractor's premiums in BC

Hiring a contractor who is behind on WorkSafeBC premiums can leave you with someone else's bill. WorkSafeBC lets anyone check a contractor's status with a free clearance letter.

The risk

WorkSafeBC says that if you hire a contractor who is not paying premiums, you can be held jointly liable for unpaid premiums for the period the contractor worked for you. This applies even when you act as prime contractor on your own home.

What a clearance letter shows

A clearance letter confirms whether a business is registered and current on payments. To be fully protected, you need a letter addressed to you showing the contractor was 'active and in good standing' for the whole period of your contract. An 'active and delinquent' status means you could be held responsible for premiums related to your contract.

When to check

Get a clearance letter before the contractor starts and again before you make the final payment. A firm's clearance is valid only up to the date of its last payment, unless it has GoldStar clearance status.

What it does not show

A clearance letter is about premiums only. It does not rate the contractor's safety record or the quality of its work.

Getting one

Clearance letters are free and available online through WorkSafeBC's clearance letter application and mobile app.

Prevention Checklist

• Get a free clearance letter addressed to you before work starts.
• Check the status is 'active and in good standing'.
• Get another letter before the final payment.
• Keep both letters with your contract.
• Ask contractors to do the same for their subcontractors.

References

1. WorkSafeBC. Why do I need a clearance letter?, Web page, Liability and statuses. Accessed 2026-11-01.
2. WorkSafeBC. Homeowners, Web page, Homeowner as prime contractor; coverage. Accessed 2026-11-01.
3. WorkSafeBC. Understanding your clearance letter, Web page, Statuses and validity. Accessed 2026-11-01.

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