What Does Fully Licenced and Insured Mean?

In today’s economy cutting costs and saving money has become a priority for many.  But hiring a contractor that is not fully licenced and insured could end up costing you an arm and a leg or even your house in the long run.

A contractor with the above credentials can give you peace of mind that the company you are hiring is not a “fly by night” operation and should something go wrong, the company can afford to fix it right.

So what does “Fully Licenced and Insured”, really mean?

Fully Licenced – The government of Ontario has made a number of trades, such as electrical and plumbing, into compulsory trades.  This means that they are governed by their own sets of standards and licences.  For certain trades this licence gives you recourse should the contractor fail to complete the job or does not do the job to the specific codes set in place for that particular trade.  You could file a complaint with the Ontario College of Trades and, depending on the severity of the situation, the contactors licence could be questioned, suspended or revoked.

The City of London also requires a licence to operate as a contractor within the city limits.  The city licence is only given to legal companies that are fully insured.

You can ask to see Power Plumbing’s licences at any time.  We have worked hard for them and are proud to show them to you.

Fully Insured – There are two types of insurance that you should look for when hiring a contractor.  The first one is liability insurance.  Liability insurance is insurance taken out by the company that will cover the cost of any damage done to your home or business should something go wrong.  While a good contractor will always do their best to not cause any damage sometimes things can go wrong.  Even a small amount of water can cause thousands of dollars in damage.  You want to know that the company doing the work can cover the cost to repair any accidents.

The second type of insurance you should look for when hiring a contractor is workplace safety insurance.  In Ontario, workplace safety insurance is mandatory for most people in the construction industry.  Should a worker be hurt on the job the property owner could be held liable if the company is not up to date with WSIB.   The following quote is directly from the WSIB website:

“As of January 1, 2013 new mandatory coverage rules came into effect; however, starting January 1, 2014, contractors who have not yet registered with the WSIB, and who do construction work without a valid clearance number will face fines of up to $100,000 upon conviction.  Those who hire contractors without confirming they have a valid clearance number also face serious fines and penalties.”

Please feel free to ask for Power Plumbing’s Certificate of Insurance that will prove that we are up to date with our liability insurance and our WSIB number so that you may obtain an e-clearance from the WSIB website.

Having a fully licenced and insured company will help ensure that your renovation project will go smoothly.  This is the only type of company that you should deal with if you want the peace of mind of knowing that anything that can go wrong will be covered by the contractor.  Power Plumbing and Heating will give you that peace of mind.