What liability does my contractor need to carry for a strata bathroom renovation in BC?

Your contractor needs a minimum of $2 million in commercial general liability (CGL) insurance and active WorkSafeBC coverage for a strata bathroom renovation in BC — and many Metro Vancouver strata corporations now require $5 million. These are not optional recommendations; most strata bylaws make them mandatory conditions of renovation approval, and failing to verify coverage exposes you to significant personal financial risk.

Commercial general liability insurance protects against property damage and bodily injury caused by the contractor's work. In a bathroom renovation, the most common claims involve water damage to neighbouring units from plumbing errors or waterproofing failures, damage to common property (hallways, elevators, lobby) during material handling, and injuries to building residents caused by renovation activities. A $2 million CGL policy is the baseline in most Metro Vancouver buildings, but an increasing number of strata corporations — particularly newer high-rises and buildings that have experienced renovation-related claims — now require $5 million.

Your strata will typically require a certificate of insurance (COI) from your contractor's insurer, and most bylaws require that the strata corporation be named as an additional insured on the policy. This means if your contractor's work damages common property or a neighbouring unit, the strata corporation can file a claim directly against your contractor's insurance rather than pursuing the claim through the strata's own building insurance (which would trigger the strata's deductible — often $25,000 to $100,000 for water damage claims in Metro Vancouver).

WorkSafeBC coverage is equally critical and often misunderstood. Under the BC Workers Compensation Act, if you hire a contractor who does not have WorkSafeBC coverage and a worker is injured on your property, you can be held personally liable for the worker's compensation claim. This is not a theoretical risk — WorkSafeBC actively investigates workplace injuries and pursues cost recovery from property owners who hired unregistered contractors. A single workplace injury claim can cost tens of thousands of dollars.

To verify WorkSafeBC coverage, request a WorkSafeBC clearance letter from your contractor. This letter confirms the contractor is registered, has an active account, and is in good standing (meaning they have paid their premiums). You can also verify a contractor's registration online through the WorkSafeBC website. Clearance letters are typically dated and valid for a limited period — request one dated within 30 days of your project start.

Additional Insurance Considerations

Beyond CGL and WorkSafeBC, consider asking your contractor about completed operations coverage — this is a component of CGL insurance that covers claims arising from work after it is completed. A waterproofing failure that causes a leak six months after your renovation is finished would fall under completed operations coverage. Most standard CGL policies include this, but confirm it is not excluded.

If your contractor uses subcontractors (a plumber, electrician, or tile installer working under the general contractor), each subcontractor should carry their own CGL insurance and WorkSafeBC coverage. Your general contractor should be able to provide certificates for all subcontractors working on your project. Many strata corporations require this documentation for all trades entering the building.

Your own insurance matters too. Your strata unit owner's insurance policy (sometimes called an HO-6 or condo owner's policy) should include coverage for renovation-related damage. Review your policy before starting the project — some policies exclude or limit coverage for damage arising from renovations. Standard condo owner's insurance in Metro Vancouver runs $500 to $1,500 per year, and increasing your coverage limits before a major renovation is often worthwhile.

Red flags to watch for: A contractor who says they "don't need" insurance for a small bathroom job, offers a significant discount for paying cash without a contract, cannot produce a certificate of insurance within 24 hours of your request, or claims WorkSafeBC does not apply to residential work. All of these are warning signs. Legitimate bathroom renovation contractors in Metro Vancouver carry proper insurance as a standard business expense — the annual cost of $2 million CGL coverage is typically $1,500 to $4,000, which responsible contractors build into their overhead.