Alec Caldwell
Trying to evade mandatory WSIB in Ontario can have tragic consequences
Canadian Contractor Business Market riskIf you try to evade WSIB by having the homeowner hire the trades, with you acting only as an "advisor" or "project manager," you could be in for a tragic situation, if an injury occurs to a worker, as well as huge legal consequences.
Some contractors in the Toronto home renovation market have come up with what they believe is a way to evade paying WSIB premiums. Their evading practice reduces the bottom line to the homeowner and helps squeeze out others bidding for the same work and who are factoring in WSIB premiums to their price.
These contractors, set themselves up as Project Managers. Here they have the homeowners hire and pay the trades directly. Under the new mandatory rules WSIB in Ontario, launched January 1, 2013, these Project Managers use one of the exemptions to the mandatory rule. The exemption covers individuals, partnerships or corporations doing exclusively home renovation work and working directly for the occupant or member of their family and is paid directly by the occupant or member of their family.
This practice is fraught with many legalities and dangers, no more so than putting the homeowner at risk under the Occupational Health and Safety Act. The issue is: what happens when one of these hired trades gets injured on the homeowner’s job? Would the homeowner be seen as the constructor under investigation by the Ministry of Labour and held accountable?
There have been homeowners in the past that have been prosecuted under the Act, after being found as constructors. One in Scarborough Ontario for failing to take precautions reasonable in the circumstances for the protection of workers, contrary to Section 25 (2)(h) of the Act. Another homeowner in Richmond Hill Ontario was fined $20,000 after a worker fell 10.5ft and died. The homeowner pleaded guilty as a constructor for failing to ensure a guardrail system was used, contrary to Section 23(1) (a) of the Act. Who knows what the further legal ramifications could be, for the renovation contractor, notwithstanding the obvious anguish that they are now living through on a daily basis. And the anguish and grief for the family.
My question is: have these so called Project Managers done their homework correctly? Are they putting homeowners at risk with their evading system? Do the homeowners know about these dangers? Is it worth the gamble in order to save a few dollars on their home renovation! I believe it’s about showing due diligence before an accident occurs and not afterwards, because its too late by then!
CARAHS is a non-profit Occupational Health & Safety Association for Self Employed Construction Business Owners & Employees
Toll free 1-866-266-2930 www.carahs.org
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[…] done to your home in the near future, I suggest you do some research. For starters, here are two articles that will get you started on this […]
Reply to this article posted in LinkedIn Owner/Builders Group
Reply by: John Perrott
I would like to relate a story from personal experience here. I TRIED to register with WSIB almost 2 years ago, but was told that since I didn’t have any employees, I couldn’t.
When I explained to them that they had educated homeowners to ask for WSIB clearances, they stuck to their “no employee, no registration” policy even though this meant that any homeowner who asked me for my WSIB compliance would not hire me. I then told them that I hired labourers on a temporary basis but they still refused to allow me to register. They also told me that since I had 10 days to register after hiring an employee, if I didn’t intend to keep an employee for longer than 10 days, I really didn’t need to register and that I should “just keep that information to myself”.
Explain to me how this gov’t beauracracy is working for me again please?
Anyone can purchase ‘General Liability’ insurance, that will cover you and your employees for work that you do on contract with other companies. I srongly recommend it, since you can ALWAYS get sued by someone, even if they don’t have grounds. I have GLI, along with another policy called “errors and Omissions”, in case I make a mistake in my training programs, or a client mis-understands and does something that hurts someone. Because I do, I am exempt from WSIB registration.
In reading these 2 comments, it is clear that there is alot of misinformation going around from individual business owners however government is at the top of the list of reasons why this is happening.
The first writer despite pleas regarding being told what he was told, should have known that as a legitimate contractor running a legitimate business, he should be on payroll as an owner operator. That one simple act would require and facilitate reporting and payment of WSIB coverage for himself. Every employee hired on payroll, would have the same consequence regardless of duration of employment as far as I have experienced in my 24 years. Your WSIB premium is calculated on the basis of payroll cost and for the period in question that individual is under your employ doing work for your company regardless of what circumstances or task; by paying into the system that individual is covered!
The 2nd comment from Lauri Sue indicates that her only focus was on herself. However if she too is running a business, anyone she has in her employ at her office or on the day(s) of her seminars would/should be on payrolland thus WSIB tracking and payment would be possible. This is in addition to and ontop of Commercial General LIability Insurance which has other implications for one’s business and it extends far beyond the risk associated just with labour or accidents/injuries to them so just having that, does not cover you completely in Ontario and vice versa (meaning if you are only carring WSIB-you are not legitamately protected as a business nor are your clients for a multitude of risks that are present in every day of our business lives!
My problem with the government is I feel there has not been enough enforcement and there are simply too many “contractors” of all kinds in all kinds of sectors operating businessess but without it showing up like a business AKA like extentions of their personal bank accounts etc.
Without enforcement of getting EVERYONE registered and demanding that businesses truely operate like businesses, I don’t see how WSIB will ever get its BILLIONS & BILLIONS (I think it is more than $15BIILLION?) of unfunded liability under control. Awareness must increased, compliance enforced at the grass roots (drive bys to job sites by labour inspectors) and business owners need get their acts together so all businesses are truly operating on a level playing field and the costs to the honest ones can start to come down (in fact to everyone eventually).
If this sounds a bit like big brother, my apologies. I am just one of those honest guys that is getting tired of paying for everyone else that is not!
The following comments were posted in various media/bogging groups.
Laura P. CARAHS at the CARAHS LinkedIn Group says: “Glad Alec has written on this subject. Alec and I have had a few discussions regarding this practice of ‘Project Managers’ in the industry avoiding WSIB payments on the cost of the entire project. Irregardless of government activities, the fact that clients may now pay subs directly without having to pay WSIB portion of an invoice is a concern for General Contractors who do follow WSIB guidelines. I do hope that my facts are correct here. Please correct me if this information is wrong. Currently, a Project Manager does not have to pay WSIB on the entire project cost, presumably just His or Her cost, with new 2013 WSIB rules????
NEXT COMMENT BY……….
Robert Y. at the CARAHS LinkedIn Group says: “It’s a sad state of affairs when this happens Alec. Evading WSIB responsibility entrenches a mindset of civic misbehaviour. It extends far beyond that specific job Alex. Its breaking the social fabric we live under that separates us from or neighbour sought of the border. Financial obligations such as WSIB are part and parcel of being a business man. Our provincial infrastructures are a collective. What is the out come from an injured party? Medicare, unemployment insurance, legal aid and so on are affected when someone gets injured. The cost are amazing when calculate then realized. Whom picks up the tab. ME AND YOU! Follow the many branches and see whom is paying then. Security and Safety are principles that must be understood. This is not about saving money, and the principle reaches deeper when avoidance is apparent. They should be levied a heavy fine. Thanks Alex good thread”
NEXT COMMENT BY……….
Dave K. at the Outdoor Woodwork Experts LinkedIn Group says: “Hooray for you Alec. Do an article like this every day!!!!!!! I am one of these “one man band” contractors. Part of my livelihood comes from doing some commercial work for a couple of General Contractors from time to time, approximately 20% of my business. The remainder is for homeowners. In order for me to continue doing business I signed up and registered with WSIB. I had no choice. I am not upset or “mad” about it, I carried my own personal insurance for years. The money is not the issue, its the coverage I am going to receive in return. Too many of these guys around, hopefully the Inspectors will be out in full force enforcing this legislation and kicking guys off site!!! Its time to level the playing field!!!!!!!! I really hope this will get rid of the station wagon wonders of the world. Its tough enough to compete with legit contractors without having to deal with idiots trying to scam the system even further!!!!!!”
NEXT COMMENT BY……….
Lisa S at the Ontario Association of Home Inspectors (OAHI) LinkedIn Group Says: “I don’t think sole proprietor (or incorporated but no employees) home inspectors would be required to have WSIB, as we are only inspecting, not performing work. I’d be interested to hear what others know about this”
NEXT COMMENT BY……..
David Cook at the Ontario Association of Home Inspectors (OAHI) LinkedIn Group in reply to Lisa says: “Lisa, WSIB has been after Sole Proprietors for years. Legally they have not been able to enforce a Sole Proprietor, but this year they supposedly are changing the rules. I would think legal advice would be in order for this. I am hearing that a Sole Proprietor will not be able to submit a claim. If we cannot collect, how can they enforce it? A local Accountant is having a seminar next week and plan to attend to see if this will shed any light on the wonderful new guidelines”
NEXT COMMENT BY……….
Chuck H. at the Ontario Workplace Safety & Insurance Board LinkedIn Group says: “Alec; In NC if one contracts to be an Owner/Builder he must be very active in his project. He must schedule inspections and be on the job when the inspector(s) come and he must pay ALL sub-contractors. As a General Contractor I must hire subs who have the proper insurance (Gen. Liability & Worker’s Comp, etc.) Am O/B is not required to have to hire subs that are properly insured but when I am acting as a consultant I strongly encourage and recommend NOT hiring anyone who is not properly insured. Some individuals elect to not listen and hire the cheaper guy. In almost every instance where they have made that choice it has come back to bite them.
First of all a sub who cannot afford to insure himself properly is more than likely not going to warranty his work or even if he promises to do so, it probably won’t happen. Secondly, if something does in fact happen on the job where an injury results the homeowner is going to be held responsible. When all the facts are pointed out to an O/B they typically will make the right decision. Educating your clients and setting realistic expectations as well as making sure they understand all of the intricacies and potential dangers, they usually will make the right call. Hope this is helpful”
NEXT COMMENT BY……….
Wayne C. at the Ontario Workplace Safety & Insurance Board LinkedIn Group says: “Home inspectors whether sole proprietors or multi inspector firms including/performing commercial property inspections are required to register with WSIB. If only home inspections are performed by sole proprietors is WSIB not a requirement however multi inspector firms are required to carry WSIB”
NEXT COMMENT BY……….
Ralph C. at the Ontario Workplace Safety & Insurance Board LinkedIn Group says: “Has anyone bothered to ask the Policy Branch for their opinion? I know it will be potentially a complete double speak but at least it will be a place to start, or hold a meeting and invite the Director of the Branch to speak on the Issue. I would be happy to host it?”
NEXT COMMENT BY……….
Nancy L. at Construction Community LinkedIn group says: “I wonder if there are any ramifications for doing that in Oregon. I’ve bid for someone who handled jobs this way. He called himself a consultant, but he met me for the bid and I wrote the bid to him, not the homeowner, so I was wondering how that was different than a GC. I didn’t get the job, so I don’t know how involved he would have been during the work”
Lawrence W. at the Outdoor Woodwork Experts LinkedIn Group says: “So… All you Project Managers out there, you will have to change your business cards to read, “Project Manager” and “Gratis Intern–Permanent Collection Agent (unpaid), for the Government of Ontario and it’s Subservient Agencies”.
You know, I was under the impression that slavery was an unacceptable concept here in Canada. All this unpaid work at the government grist mill is certainly burdensome”
It’s a sad state of affairs when this happens Alec.
Evading WSIB responsibility entrenches a mindset of civic misbehavior. It extends far beyond that specific job Alex. Its is breaking the social fabric we live under that separates us from or neighbour sought of the border.
Financial obligations such as WSIB are part and parcel of being a business man.
Our provincial infrastructure’s are a collective. What is the out come from an injured party? Medicare, unemployment insurance, legal aid and so on are effected when someone gets injured. The cost are amazing when calculate then realized.. Whom picks up the tan. ME AND YOU!
Follow the many branches and see whom is paying then.
Security and Safety are principles that must be understood. This is not about saving money, and the principle reaches deeper when avoidance is apparent. They should be levied a heavy fine.
Thanks Alex good thread.
Happy New year to you and yours.
Oh oh. Looks like somebody drank too much Kool Aid. Go back to sleep pal, your government is in control.
On CARAHS web site: copy and paste http://www.carahs.org/?p=1843
David Lloyd-Jones on January 13, 2013 at 9:07 pm said:
The roofing industry has the highest WSIB rake, as far as I know. The last paycheque I saw it on ran 13% of my total — which compares with something in the 8% range for construction overall.
Sure roofing is dangerous, but I think there’s an added twist: roofers hang together, so when somebody gets injured they’ll get put on the payroll of some contractor who actually has WSIB coverage for a couple of weeks, and then sent in for rehab.
Don’t quote me, government folks: just go investigate…
The first writer despite pleas regarding being told what he was told, should have known that as a legitimate contractor running a legitimate business, he should be on payroll as an owner operator. That one simple act would require and facilitate reporting and payment of WSIB coverage for himself. Every employee hired on payroll, would have the same consequence regardless of duration of employment as far as I have experienced in my 24 years.
Peter, until this new bill (tax grab) came into effect, it’s my understanding that owners were exempt from WSIB, on payroll or not. Also, if it’s a limited company and some employee’s hold a title in the company, they too are exempt, even if an owner would wish them to be covered. If the company is not limited, the owner/employer, is not on the payroll in any case. I remember about 25 years ago, before my husband left his employer to start his own Electrical Contracting Business, the Elect company gave him a title in their limited business. Until then he was covered under WSIB, but after wards, we had to purchase our own disability insurance, as he was no longer accepted by Workers Comp.
Laurie, all companies are REQUIRED to have liability insurance. I’m not completely aware of General Contractors licenses but I assume you can not purchase a license to work without offering proof of liability insurance. I know with ESA licensing it’s manditory. (I think it’s now up to $2,000,000?) I don’t think it’s a choice. It’s not the same thing, nor does it replace Workers Comp however. They are very different insurances (though both manditory)
I am SO frustrated (what a nice way to put it) with this damn WSIB tax grab . Workers comp is far more expensive then our private disability coverage, yet offers compensation ONLY if my husband is hurt ON the job. Not illness, not after work hour accidents, as our private insurance covers. But…. I really don’t think we can keep paying for both, especially as he is 61, really, what a CROCK of ….
If we even attempt to up our rates, the General Contractors are going to balk but what do we do? Every time you turn around, there’s another government hand out for more, and your expected to pay them while earning less!!!
Yeah, I’m a bit cranky:)
COMMENT BY:
Robert Y. posted in CARAHS LinkedIn and comments:
I would like to say something else. This may or may not have relevance but it is worth the mention.
Being in the industry all my life and literally seeing all sides, one thing was constant, a need for independent insurance brokerages must be allowed into this “lucrative” market.
In Quebec CSST is mandatory. Coverage of men on “any work site” is without question. Yes some small contractors teach home owners how to work the system. Its wrong. Ever here of a home owner paying the employees injury. Even if so, what fight did that emploi have to receive there benefits. RIGHT! Grass is always greener Alex. More fertilizer I suspect from companies that refuse to chip in and pay their far share.
This is the wrong approach in my eyes. My Quebec governments failing grade in CSST insurance is part what “dives an under ground “economy.” In debt to a large tune and charge the highest premiums in North America if I am not mistaken is due to a monopoly mindset. The old saying, Absolute control corrupts absolutely is as true now as it was then. I have been at the receiving end of unheard of insurance policy increase by a fraudulent clam under a residential setting. 33.4% percent of my payroll was earmarked for insurance coverage for my men. This is no joke. 100.000 dollar payroll = $33.000 every 15th of March or checks in advance for that year and at rates HIGHER than VISA.
I fought a battle 10 years and won. Not monetarily but personally and defended myself from another 4 fraudulent clams in a six year span. If independent insurance brokerage where allow offer policies to bring down the cost and break a monopoly.
Injury is very disrupting to the individual that has chosen a Proud Trade Carrier.
Trades men and woman are highly needed in all provinces. The structure needs an overhaul from end to end with insurance being TOP most priority. If not, the underground market will continue to flereous leaving much needed provincial tax revenues out of grasp. Just my 2 cents from 36 years of watching in go out of control.
NEXT COMMENT BY:
Robert W. on CARAHS LinkedIn group comments:
@Laura PM’s always only had only pay there own WSIB.
What has changed is that now more office staff now has to pay into it and now everyone has to have a WSIB #. They have also changed how long the clearance is valid and how you obtain it. They have also changed the fines and the way they are administrated.
What everyone needs to find is there employer rep for WSIB…..there are not many for the province, but they can help you stay out of trouble with WSIB. Oh WSIB will not always tell you who you contact or if there is such a service available! Bottom line is they want more $ and to see everyone so they can audit more people.
REPLY COMMENT BY:
Laura P. at CARAHS LinkedIn group comments:
Hi Robert. Thanks. The point I was making is that some General Contractors are positioning themselves as Project Managers with consumers. Instead of engaging the subs themselves and acting as GC (i.e. pay WSIB for all subs through Contract), they have the home owner ‘engage’ the sub and pay the sub directly. The homeowner avoids paying WSIB on each subcontractor invoice. This means the General Contractor’s Quote is a percentage less than other GC’s bidding the job! Presumably you can see how this business model is challenging for those of us, GC’s, who are following to the ‘letter of the law’ and WSIB payment requirements.
COMMENT POSTED ON HOMESTARS WEB SITE:
“Thank you.
very good post…
Unfortunatly there are still a lot of contractors out there with no WSIB coverage.
John
I have been a hands on contractor for 30 years and for the last 7 years have been acting as a project manager on all larger jobs I take on. Even though I am insured and have Comp for when I am hiring a helper or temporary tradesperson , I make sure, as part of my obligation to the homeowner, that all trades are also insured and have WSIB or an exemption. My average job is around $30,000 but range from $3,000 decks to $200,000 additions . I would like to see how many firemen and other cash only guys even have insurance let alone WSIB. Acting as a project manager is not some sinister way of skirting financial responsibilities but a reality for a small contractor like myself .
Re comment by Doug M.
Thanks for posting this Doug and its great to get input from someone like yourself, who’s been in the business and know whats required and is not out there skirting these obligations.
The article I wrote was to shed light on some who are trying to skirt these issues and they’re out there along with others, like the firefighters you mentioned, which should be addressed.
Thanks again Doug
I supply and install windows and doors and have been doing it legit for the past 15 years.
I work alone and have never had to pay into wsib for myself. and am registered because I require clearance to do contracted work which has never been an issue.
BUT NOW I don’t understand how they justify the exemptions which are
1 If you are the proprietor working solely for the customer and still on the tools you are exempt from paying into wsib on yourself
So it sounds to me like nothing has changed here however in todays economy we tend to also install for other companies to survive and make a living and for doing that I am now penalized 10.25% of my net yearly income.
When I phoned wsib they told me that this plan was to drive out the underground economy when to me it seems like a penalty for making a profit where margins are very small and prices in the construction industry are still relatively the same as in the 80s.
I carry private insurance that costs 210.00 per month and it covers me 24/7 while sleeping, driving and at work or out of the country. With my new mandatory wsib premium now required by law I have to pay an additional insurance to them which is paid quarterly and they told me that they take the previous years tax return line t135 which is your net income and that is what my quarterly 10.25% will be based on for the first 3 payments. I am also told the maximum payable on the sole proprietor is 8900.00 in a year. Thank you for removing 741.00 per month from me.
It is also nice to know that if I work alone and get hurt on the job with no witnesses my chances of myself getting any help from wsib is reduced by 85% and their trained case managers can seep me up after that so why is this mandatory and how does this stop the cash cows.
If you are trying to stop the underground economy go away but why do I have to pay the bill.
You could pull over the trucks and trailers that leave lumberyards everyday with absolutely no logos or company names and check their legitimacy and go public with charges in the press to activate a spreading deterancy.
in my opinion the underground economy is laughing at this tactic as we foot the bill.
Good job and Thank you .
Now I have 2 insurances and no I will not cancel my private insurance which is a package with liability, damages and theft as well as bodily harm and even sickness that prevents me from working.
While my husband is the contractor/owner of our Electrical company, he is also still working on the job. With our private disability, if he is injured and can not continue to physically work as an Electrician, he is still allowed to function in the capacity of owner. So, he might be doing estimating/paper work, job showings and the like, but not be allowed to go back to being a working electrician. The disability payments would still come in. With WSIB, is it a safe bet that any payments would be dropped, if he could perform some kind of work, such as described above? I think most Contractors, if injured, would try to carry on their business by hiring (not perhaps as lucrative as being one of your own tradesman but) and over see the jobs, handle the office and financial side of things, etc.
SO, if WSIB would consider that a new job or in essence, you have not even LOST your job due to injury, and then cut off disability payments, what the HECK is the point in a Contractor having the insurance!!! How many of us would ever end up getting a check? How bad would the injury have to be to not be able to keep your company going? Would you have to close your company and QUIT in order to collect? How ridiculous would that be, for us, for WSIB AND for the tax payers.
Does anyone know how WSIB would work in that situation?
There is also unempolyment insurance that as a sole proprietor in a small business you cannot collect unemployment insurance and as I just found out if you are also a family business if you pay into UI and layoff a family member the CRA feels they have to fight against your family members claim after paying thousands of dollars for nothing.
Canada is really helping our small businesses and I am sure that WSIB is just helping me too with my best interest in mind.
I have no problems paying my bills but if I bill someone it is justified for work and services completed. What justifies the bills from WSIB and the CRA
I was told by WSIB if I work for homeowners directly and have no employees I dont need a wsib number. So all you homeowners, hire me and save 9.1% over all contractors with employees. Nice. Thank you wsib!
>I just found out if you are also a family business if you pay into UI and layoff a family member the CRA feels they have to fight against your family members claim after paying thousands of dollars for nothing.<
Old posting I know but…
We had always known a family member could not collected E.I…. or so we thought!
When we apprenticed and registered our grandson, we did not deduct EI from his pay, as per our accountants instructions and as we agreed to because of the rules of at arms length. He attended his first round of schooling, collected a cheque at the end of his 2 months. The cheque being something offered to those apprentices who do not qualify to collect EI through their schooling term.
Fine, all was well.
The next year that he went to school, he applied for the same cheque and we got a phone call from Rev Canada. Why was this employee not on EI? Well, explained he was our grandson. They asked what his job entailed, I told them, apprentice. A few more questions about his employment and they then informed me we were suppose to fill out some form to "disallow" him from EI… what the!!!!!
So, for 2 days a rep from rev canada sat in my dinning room going over years of payroll. More questions, did he have a company vehicle to drive/take home, no, he doesn't have a drivers license. Does he do this, does he get that. At the end of the 2 days, they determined he did the job and was handled in the same manner as any other employee and was at arms length and DID qualify to be on EI. So, we ended up with a penalty (small but still a penalty) and we had to pay all the EI (his and our portion) for the past 3 years since he started with us. OMG!!! I understand they want to avoid families hiring their kid for the summer (the kid that likely does nothing) and then lay them off when they go back to school etc and then we do what seems RIGHT and we get dinged?
They did send him his EI for the 2 years (4 months) of schooling and he did give us his 2 year portion of his EI (good boy:) but it's the rules in the rules that are just hair pulling!!!
A small contractor said to me just a few days ago. I work 95% for homeowners, he is on his own, small reno's and repairs. Why would I keep that 5% commercial and pay 10% to do so. He has decided to "give up" anything other then working directly with the homeowner.
Dismantle the whole system and privatize it. Don’t tell me how great u are and it’s my privledge to give u 12 percent of my income. Let insurance company’s offer the same insurance and see if they can better the rate. If wsib is so great let the private sector try..give them competition. If wsib is better , ill stay there , if not I should have a choice..if u want mandatory coverage.. Let employees pay their own.. Yes another tax…from 5percent to 7 percent to 12 percent. Now I have to pay…too many pigs at the trough… And how much more 3 years from now,5 years from now 10 years from now… It doesn’t work…. Its greoat if u work there..how much is the average wage for wsib employees.. We’re we consulted as an industry to see if we agreed with what they were making.. How about their CEO. Did we agree on his salary. If your going to act like we’re all in this together then let we should all have a say in how you are run. Not have you delegate on high, how much we should give without any governance how much we think you should earn..
I do believe that this is nothing but the government just taking my money…I have been a carpenter for 15 years and have never hurt myself or have I seen anyone hurt themselves to the point they need to take some time off work …I am a contractor and honestly all this is doing is making it harder for us smaller companies to survive…. If you believe that this is going to stop anyone from doing cash work , you couldn’t be more wrong … it is only going to push more people to do it and I don’t blame them…maybe it is time for everyone to rip the government off .. so sick of this corporate BS country we live in and them robbing us
lets just all work for cash and be competive that way. insurance companies dont nail you with 100,000 fines, penalties, mistakes, no paper trail!! no problems i guess. just take the nessesary steps to be safe, thats what my comptition is dong.
The author is maligning Project Managers without cause. While true the PM does not pay into the WSIB scheme for his own wages, the subs must still comply with relevant Ministry of Labour regulations. Regulations that clearly require all trades actually doing physical work on a project to have coverage and to post their information on site (thru the form 1000). A project manager is not a tool for evading WSIB except on a small percentage of the total project. Furthermore, the ruling sited in the article holding the homeowner responsible for workplace safety was owing to the fact that the owner had more than one trade working on his project without a general or a project manager making the homeowner the general contractor and therefore responsible for site safety. The only thing a project manager does is make the construction process transparent. The client is able to monitor where every dollar of his project is going unlike the opaque general contractors stipulated price contract.
Who are the collection of knuckleheads that established this system with loopholes that leave anyone uncovered? The resolution is no loopholes period. The inference that people are attempting to avoid premiums and thus beat the competition is not valid. What people are trying to avoid is the cumbersome WSIB system that picks the low hanging fruit instead on focusing on finding the offenders. The inability of the WSIB workers to clearly articulate the rules is an indicator of a lack of competence typical of government organizations. Don’t wish to tar all these folks with that brush , but that’s how the rules seem to be applied the other way. Leaving the home owner exposed by having to wend their way through this mess is disgusting. All they want is the work done properly, they should not have to try to navigate a system imposed on them.
Why is the government in the insurance business? The problem is that Contractors pay all these different insurers to be an “honest Contractor” but when something goes wrong the insurers all claim some escape. Then you find out you have paid and paid but in fact are never fully insured and your Company takes the hit anyway. I do not think the Government should have any type of insurance only regulations to be insured and inspectors to enforce.