Condo contractor insurance requirements in Ontario

Who sets the requirements

Ontario condo corporations are governed by the Condominium Act, 1998, and condo managers are licensed by the CMRAO. Neither sets a fixed insurance amount that every contractor must carry. Instead, the board decides what it will accept, usually on the advice of its manager, insurer or lawyer, and writes those requirements into service contracts, tender documents and internal policies.

That means requirements can vary from one corporation to the next, and even between contracts at the same building. A clear written standard helps the manager apply it consistently.

When setting or reviewing that standard, many boards consider the size of the property, the type of work, whether contractors will work on common elements or inside units, and what the corporation's own insurer expects. A small landscaping contract and a garage membrane replacement rarely call for the same limits, so a tiered standard by trade is often easier to apply than one number for everyone.

Common insurance requirements for condo contractors

The following are typical, not mandated. Your board's contract or policy is what applies.

• Commercial general liability (CGL) of $2M per occurrence for most trades.
• $5M CGL or more for higher-risk work such as roofing, fire protection, demolition, restoration, elevator work, or large projects.
• Additional insured: the condo corporation, and often the management company, named on the contractor's policy.
• Auto liability where the contractor uses vehicles on the property, including in the parking garage.
• Professional liability for engineers, architects and other consultants, such as those preparing reserve fund studies or building condition assessments.
• Pollution liability for environmental or abatement work.
• Notice of cancellation, often 30 days.

For guidance on choosing limits by trade, see how much liability insurance a contractor should carry.

What to check on the certificate of insurance

1. The insured name matches the contractor named in the contract.
2. Insurer, policy number, and effective and expiry dates are shown.
3. Limits meet or exceed the board's minimum for that trade.
4. The condo corporation's legal name appears as additional insured, where required. Check the corporation number, since similar names are common.
5. The policy is in force for the full length of the work.

Insurance is only part of the file

Most condo managers collect a few other documents alongside insurance:

• A WSIB clearance certificate. While valid, it protects the corporation from being held liable for the contractor's unpaid WSIB premiums. Clearances last up to 90 days, and in construction must be in place before work begins and for the duration of the work.
• An ESA Electrical Contractor Licence for electrical contractors.
• Working at Heights training records for construction workers using fall protection, valid for three years.
• Fire alarm and extinguisher service records. Under the Fire Code, the corporation as owner keeps responsibility for this maintenance even when a contractor does the work.

Keeping it current

Write the board's minimums into a one-page standard, attach it to every contract, and review it when the corporation's own insurer recommends changes. Record each contractor's expiry dates, request renewed certificates 30 days ahead, and ask for updated WSIB clearances each quarter. See our vendor onboarding checklist for the full process, and note that Vendorpass can hold these records for each building if you manage several corporations.