WorkSafeBC’s Goldmine of Information
What a Clearance Letter Tells You About Your Contractor

Question to the Valroc team:

I am looking at hiring a contractor and I’d like to do some more research. What is a ‘clearance letter’, and how does it ensure the safety of my project?

Answer:

It is critical to get a clearance letter from WorkSafeBC before hiring any contractor. It will let you know if the contractor is in good standing, or if there is money owed to WorkSafeBC. If the status of the clearance letter states that they are not up to date, you could be liable for insurance premiums relating to the work this contractor provides for you. We’ve detailed how to get a clearance letter and what each status means.

Regards,

the Valroc Team

Question to the Valroc team:

I am looking at hiring a contractor and I’d like to do some more research. What is a ‘clearance letter’, and how does it ensure the safety of my project?

Answer:

It is critical to get a clearance letter from WorkSafeBC before hiring any contractor. It will let you know if the contractor is in good standing, or if there is money owed to WorkSafeBC. If the status of the clearance letter states that they are not up to date, you could be liable for insurance premiums relating to the work this contractor provides for you. We’ve detailed how to get a clearance letter and what each status means.

Regards,

the Valroc Team

If you’ve hired a subcontractor who hasn’t paid WorkSafeBC, you will be liable for insurance costs relating to the service they’ve provided for you.

To safeguard your business from additional insurance costs, always get a clearance letter before getting services from a subcontractor. A clearance letter confirms an enterprise is registered and paying its rates. To become absolved of any potential responsibility related to your subcontractor’s unpaid rates, you’ll want a clearance letter from WorkSafeBC confirming that your subcontractor was “active and in good standing” for the complete amount of your contract.

For more information, or to request a clearance letter from WorkSafeBC, visit WorkSafeBC’s Get a Clearance Letter page.

I have a clearance letter now, but what does it mean?

Clearance letters let you know if a contractor is registered with WorkSafeBC and is up to date with his or her payments. If they are not registered, or they have no paid WorkSafeBC, this is a huge red flag. If they are not registered, your insurance could be completely void. If they are registered but simply haven’t paid, this should give you a good idea of how reliable they are. Here are some common standings within the letter and what they mean:

“Active and in good standing with advance clearance”

The contractor is registered and up to date. He or she has qualified for Goldstar clearance which is the highest level.

“Active and in good standing”

The contractor is registered and up to date. His or her clearance is valid only until their last payment, unless they have GoldStar clearance that provides clearance to a later date.

“Cancelled and in good standing”

The contractor has cancelled his or her account and does not owe premiums up to the cancellation date. They do not have an open account with WorkSafeBC at this point.

“Active and Delinquent”

This contractor owes premiums. Because they haven’t paid up to date, you could be held responsible for premiums related to your contract.

“Cancelled and Delinquent”

This contractor has cancelled their account and owes premiums on it. You could be held responsible for the premiums related to your project.

“Recently Registered”

Because this contractor is recently registered, their first payment is not yet due. Once the due date has passed the status will be updated.

“Recently registered and subsequently cancelled”

The contractor’s final payment is not yet due. At the beginning of the next month, check again to see if their status has been updated.

“Active and not reported”

The contractor hasn’t filed their year-end payroll figures. Until they do so, WorkSafeBC can’t determine whether they have paid the correct premiums.

“Unable to comment”

This generally means the contractor’s transactions haven’t been processed. Check again in a couple of days, or call WorkSafeBC’s Employer Service Centre.

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Written by team Valroc. We are a dedicated team of construction specialists using our knowledge and expertise to build a stronger community. We promote an environment where we can learn, grow, and prosper together.
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2017-10-05T14:34:26+00:00