The Workers’ Compensation insurance (WCI), or sometimes called the Industrial insurance, provide financial coverage to an employee if he or she gets injured in duty hours. So, if you are the owner of a business where you need employees, then you must pay WCI premiums to ensure your employees are covered in case of an accident. While it is not mandatory for all industry to register for WCI, but we suggest you should volunteer for the service. So, in this article, we will discuss what the Workers’ Compensation insurance is all about, how much important it is for the business owners to register and pay for this service, and should the business owner purchase this in the first place or not. workers compensation insurance
Why must the business owners pay for the Workers’ Compensation insurance?
Let’s talk about the worst-case scenario – suppose one of your employees got injured while working in your work premises. Naturally, that employee will claim his treatment cost. As the accident happened in your workplace, it is your liability as per the rules suggests. The amount can be lump sum depending upon the magnitude of the incident. You must have to pay for medical bills along with the compensation that the court decides for him. All in all, you have to spend a hell lot of money to get clear of your name. Now, imagine similar incidents happen twice or thrice! It would be catastrophic for your business. workers compensation insurance
That is why you should volunteer for the Workers’ Compensation insurance, as all your injured employee will be under the coverage of WCI, and will get every financial assistance they need to recover from their respective injuries. Who knows, one employee may even thank you for the financial aid that he needed, which you have not paid out of your pocket.
How does the Workers’ Compensation insurance work?
The WCI is designed to serve the employees if they encounter an accident while working. Most of the business in Canada must pay for the WCI apart from a hand few of industries aside. The WCI is not mandatory for computer programmers, doctors and chiropractors, private day-cares, travel agencies, photographers, and taxidermy. However, some companies, in spite of being in these industries or professions, voluntarily accept WCI to avoid any unexpected expense. workers compensation insurance
The Workers’ Compensation Act was enacted over 80 years ago by the Chief Justice of Ontario, Sir William Meredith. He has suggested four principles that we will elaborate in layman’s term.
- The first principle suggests that employers are somewhat responsible for any unfortunate event in the workplace. Therefore, he must compensate for the amount that the injured employee claims. Of course, the court must agree to claims.
- The second principle suggests that the employee can’t ask for further compensation after the final settlement, which the court declared.
- The third principle suggests that it doesn’t matter whose fault it was that caused the accident, the decision of the court will remain the same, and this factor will be irrelevant.
- The fourth and final principle suggests that an independent agency should be formed to resolve the issue raised by the employee. However, it is crucial that the committee should be unbiased.
Now, based on these principles, the Workers’ Compensation insurance came into the picture that most of the industry in Canada must follow.
What are the benefits an employee will get from WCI?
While the Workers’ Compensation insurance benefits vary from one province to another, there are some common benefits that every employee receives irrespective of which province they are.
- All the preliminary health care payments. Apart from that, the employee may also get
transportation, housing, and clothing.
- Wages compensation till the time the employee fully recovers.
- In case if the employee never recovers, he will receive the full disability benefits.
- Apart from the survivor’s benefit, the employee will also get a one-time amount and annuity benefits.
- Physical and Mental Rehabilitation.
The Conclusion – how much the business owners must pay for the WCI?
As the Workers’ Compensation insurance in Canada varies from one province to another, the level of risk that the employees take on each industry is different from one another. That is why the law exempts some of the industries and professionals from WBI. So, to tell you how much you have to pay precisely is tough. However, there is a common factor to determine the premium cost of WCI, which is the location of your workplace. In Manitoba, it costs only $0.95 per $100 remuneration, which is significantly low compared to $2.65, which is in Nova Scotia. Therefore, you need to know what is the premium cost of your industry and province to figure out the total value of the premium you need to pay for WCI. workers compensation insurance