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Benefits of workplace safety and insurance

If you are a worker in Canada, you are most likely covered under the worker’s compensation board of your province or territory.

If you are a federal employee, you are covered by the Government Employees Compensation Act. However, a provincial worker’s compensation board will still process your claims.

There are many benefits to being part of a worker’s compensation program. For workers it carries benefits, because it means if they are injured or fall ill while on the job that they can apply for compensation benefits while they are unable to work.

Employer premiums

Most private sector employers are responsible for paying insurance premiums. Premiums are determined based on a variety of factors. The primary factor is the assessable earnings of workers.

The point of paying the premium to the board is like paying other kinds of insurance: it’s a pool to pay workers who get injured or fall ill while on the job. As such, these premiums cover wage loss, rehabilitation, health care, administration and more.

How are premiums set by the worker’s compensation boards?

Worker’s compensation boards look at several factors. Most often industry groups set the rates. The industry group is further classified into rate groups and then the base rate is calculated for the rate group.

Rate groups are groups that are defined by similar similar expected risks and rates of injury and illness. Each rate group gets their own premium rate, based on the group’s injury and illness record and costs. Those groups with higher risk, get charged more.

Premiums are assessed on a yearly basis.

Construction industry

Almost all provinces and territories require employers who are in the construction industry to be registered for workplace safety and insurance. That is because the construction industry is considered high risk where workers are more likely to get hurt.

Benefits of being registered for workplace safety and insurance

For employers, being part of workplace safety and insurance has one big benefit. Most employees who get injured or ill during the course of his or her work and are entitled to get this benefit cannot turn around and sue their employer. In some situations employees can sue and then have to choose between either getting worker’s compensation or suing. However, that is dependent on what the rules are for worker’s compensation of each province or territory. If you want to find out if you can sue, you should consult a lawyer.

The benefit for employees of course is receiving benefits if they are injured or fall ill at work. Such benefits include: health care benefits, wage-loss benefits, permanent disability and death benefits and more.

Read more:

Alberta 2018 Employers Premium Rates Guide

Worksafe British Columbia