WorkSafeBC coverage for contractors bidding on public work

Nearly every BC public service tender asks the same question: are you registered with WorkSafeBC and in good standing? If the answer is no, or "sort of", the bid usually goes no further. Here's how coverage works for small contractors, and how to keep it from becoming a problem halfway through a contract.

Do I have to register with WorkSafeBC?

If you hire workers, you generally have to register as an employer and pay premiums based on your payroll and industry. That includes part-time and seasonal staff. WorkSafeBC's small business pages walk through registering online, and you can call its Employer Service Centre if you're unsure whether your situation counts.

The edge cases are where small crews get caught:

• Sole proprietors and partners with no workers aren't workers under the Act, so they're not covered automatically. They can register and buy Personal Optional Protection (POP), voluntary insurance that covers their own lost income and medical costs if they're hurt on the job.
• People who work only for you may be your workers for WorkSafeBC purposes even if you call them contractors. WorkSafeBC decides based on the actual relationship, not the label.
• Subcontractors you hire should have their own coverage. If they don't, you can end up paying their premiums.

Why do public buyers care so much?

Liability. WorkSafeBC says that if you hire a contractor who is registered but not paying their premiums, you could be liable for the premiums owed on the work they did for you. A public buyer that hires an uncovered crew could end up paying the crew's bill. A clearance letter addressed to the buyer protects them, so they ask for one.

There's also the safety side. A firm registered and in good standing is visible to WorkSafeBC, and buyers read that as a sign the business is real and runs properly.

Do I need to register if I'm a one-person operation?

Usually the tender decides for you. Many BC tenders ask for a WorkSafeBC account number and clearance letter regardless of size. If you're a sole proprietor with no workers and you want public work, registering and taking POP is the simple answer: you get an account number to put on the bid, you're covered if you're hurt, and the buyer gets their clearance letter.

If a tender seems to require coverage you can't get, ask a question before the deadline rather than guessing. See how to ask questions during a tender.

How does a buyer check my clearance?

Through WorkSafeBC's online clearance letter service. The buyer (or prime contractor) looks you up by your WorkSafeBC account number or exact legal or trade name, and the letter shows whether your account is active and in good standing and the date your premiums are paid to. Your job is to give them the right account number and make sure the answer is good.

Many buyers check again before final payment, and some check at every progress payment. A letter that was clean when you signed doesn't protect you if you fall behind halfway through a three-year term.

How do I stay in good standing during a contract?

• Report payroll accurately and on time. Late or missing reports are a common reason accounts fall out of good standing.
• Pay premiums on the schedule WorkSafeBC sets for you.
• Update your classification if your work changes. Premium rates depend on your industry classification. If you add a new type of work, check whether it fits your current classification.
• Check your subcontractors' clearance before they start and before you pay them. It's the same protection your buyer is using on you.

What about the prime contractor role?

Coverage is about insurance. Being named prime contractor is about coordinating safety on the site, and it comes up in many BC tenders. What being prime contractor means explains it.

Where to go next

The paperwork BC public buyers ask for covers insurance, COR and bonds alongside WorkSafeBC. If you're thinking about safety certification, read how to get COR in BC.