Lesson 6: WCB and the Employer

How does Workers' Compensation Work For Employers?

Most industries are required by law (Workers' Compensation Act) to have workers' compensation coverage for their workers.

• Compulsory Coverage:  All employers in compulsory industries must open a WCB or similar account within 15 days of employing their first worker(s).

  The WCB charges employers premiums based on the total wages of their workers for the year and the risk of injury in their industry.

  For example, forestry companies usually pay higher WCB premiums than engineering firms because forestry workers have a higher risk of accidents than do engineers.

• Voluntary Coverage:  Employers, in industries not covered by the WCB Act, can apply to have workers' compensation insurance protect their workers. 

For example, most farmers are not required to have workers' compensation coverage but may decide to provide Voluntary Coverage for workers.

• Personal Coverage:  Business owners (individuals, partners, and directors) are not covered automatically by the WCB for work-related injuries.

  Business owners can buy workers' compensation insurance. This type of insurance is called Personal Coverage.

  Personal Coverage gives business owners the same insurance benefits workers get when they are injured on the job.

  For example, a business owner with 10 workers, covered by workers' compensation, pays premiums for 10 workers and can also choose to buy Personal Coverage for him/herself.

If You Are An Employer?

1.  Call the WCB to find out if you are working in an industry that is required by law to have workers' compensation insurance coverage. If so, open an account with the WCB. The WCB will determine the cost of your premiums. You must do this within 15 days of hiring your first worker.
2. If your business is not required by law to have workers' compensation insurance, you can choose Voluntary Coverage for your workers.
3. If you are a business owner, you must decide if you would like to purchase Personal Coverage for yourself.
4. If you have an account with the WCB and one of your workers is injured, write down all possible information about the accident. Complete and submit an Employer's Report of Injury form to the WCB. You must send this form to the WCB within 72 hours of becoming aware of the injury.

    

Businesses that do not require workers' compensation coverage include: