WCB PEI Contractor Clearance Letters

WCB PEI recommends requesting a clearance letter whenever hiring contractors or subcontractors. The clearance confirms the contractor's WCB account is in good standing; without it, a principal employer can face assessment responsibility for amounts owed by the contractor or subcontractors.

UpdatedAugust 31, 2026

ByCanada Rate Lab Editorial Team

SourcesWCB PEI + IRAC + IBC

MethodologySource-led research

Key points

01WCB PEI says a principal should always request a clearance when hiring contractors or subcontractors.

Verify current PEI rules, contracts and policy wording for the business.

02A clearance confirms the contractor's WCB account is in good standing.

Verify current PEI rules, contracts and policy wording for the business.

03If a contractor is in default, the principal employer may become liable for assessments owed.

Verify current PEI rules, contracts and policy wording for the business.

04Independent operators with no workers may not be required to register but can apply for Personal Coverage.

Verify current PEI rules, contracts and policy wording for the business.

Clearance is a payment-control step

The useful time to check WCB status is before releasing contractor payment, when the hiring business can still address an account problem.

An uninsured independent operator creates another exposure

WCB PEI warns that hiring an independent operator without Personal Coverage can leave the hiring party vulnerable to lawsuits after a work-related incident.

WCB clearance does not replace private contractor insurance

A WCB account answers workplace-compensation questions. CGL, professional liability, tools/equipment and commercial auto remain separate private-insurance layers.

PRIMARY SOURCE

Verify the current PEI rule

WCB PEI — Clearance Letter Request →

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