Let’s talk about your issues as a self employed contractor, shall we?
If you are an “employee” your company must by law insure you for workplace related injury. This might explain why so many companies are forcing employees to go on contract, and hiring them back at higher wages in lieu of benefits.
And, this is not necessarily a bad thing for you as the contracted employee. There are tax advantages, and if done right, more protection options in areas of disability coverage that will put you in the driver’s seat. Nortel has proven that group LTD is not the be all and end all, and it should send shock waves through the corporate employees to realize they had better take measure to protect themselves. But we are here to focus now on WSIB.
Perhaps your client is looking to cut back on cost, and by hiring companies and contractors, they can avoid the high premiums of WSIB.
Specifically, what are your issues and shortfalls with the 
WSIB insurance program?
The best little graph I have seen so far is this one that compares the WSIB situation with that offered by private disability:
| Workplace Safety & Insurance Board |
Private Insurance |
| On the Job Coverage Only (Work Related Injury plus Illness) |
24 Hour Coverage Injury optional illness coverage at Home, Work or Play. Covers any type of injury or illness |
| Extended Health (Work Related Only) |
Extended Health (Blanket Coverage). Alternative to WSIB contracts may offer $10,000 to $100,000 of Accidental Medical Emergency coverage. Group or Individual Extended Health contracts offer blanklet coverage any type of medical coverage to the terms of the contract purchased. |
| Rehabilitation discretion of WSIBReturn to work with Modified Duties |
*Unlimited Rehabilitation Benefit in good contracts, others limited to the limit within the terms of the contract. *Return to work once client is able to return to work in his own occupation thereafter any occupation |
| WSIB doctor assessment of injury |
Clients own doctor assessment |
| 16 sprain & strain coverage |
60 day coverage, options for higher sprain & strain coverage or no limit on sprain or strain Non Cancellable contracts with a 30 day wait offer NO limitation on Sprains & Strains |
| Coverage capped to reflect average industry wage1st year capped at $22, 567.00. Normal Rate for Owner Operator $5.78 per $100 of replacement Income based on net $32,000 of replacement income. Annual Premium $1,849.60 |
Overall Maximum Combined of $6,000 monthly for both Loss of Income and Business Overhead Expense Reimbursement.Coverage based on Gross or Net Taxable Income. Average Rate for Injury Only Coverage $3.76 per day. Annual Premium of $1,349.88 or $112.49/mo. Add Extended Health Coverage Optional. Annual Premium $2,098.68. |
| LTD at discretion of WSIB |
Long Term Disability to Age 65 or 70 based on any occupation, education, training and skill. |
| Integrated with CPP |
Integrates with CPP |
| Accidental Death & Dismemberment $300,000 |
Accidental Death & Dismemberment up to $500,000 |
| Specific to Employer’s Market |
Specific to Small Business Owners needs |
| Mandatory for Employees, Optional for Business Owners |
|
| Inflexible to alternate coverage in place. |
Flexible. Purchase coverage by assessing your overall needs. |
I would add that the best policies will not force you to find a job outside of your occupation. And, this is important as your earnings increase with talent and experience. Why should you flip burgers at $7 per hour, when you have been trained at a specialty for $50 per hour? Why should you be penalized? Short answer – you shouldn’t!
It would seem there is a whole industry surrounding WSIB, it’s pitfalls, the complications of getting it, etc.
I just spoke to a client in his 30′s that was told by WSIB, that should he qualify, the premium would be 8.7% of his wage.
So, if he earned $3000 per month, the premium would be $261 per month.
Wow!
What would he be getting for that $261?
Well, what he is getting may better be described by what he is not getting.
- If he was in a car accident outside of work and became disabled – nothing.
- If he got an illness such as cancer or a heart attack that rendered him disabled – nothing.
- any other accident outside of work time and duties – nothing again.
The point is, if you are going to insure yourself adequately, why not be in control and be insured for any reason that might cause a disability?
Are you any less in need of money for disability issues not covered by WSIB? No.
As brokers, we are able to access the best disability plans, at the best cost, and these plans are yours.
In other words, good disability policies will be portable, will not be cancellable, and the rates are locked in at the time you take out the coverage.
Some plans can and do pay back a portion of premiums if you cash in, at 25% or 50%, and some allow you to convert them to other forms of income streams at retirement – specifically long term care coverage.
This literally leaves WSIB and it’s offering in the “dust”.
Like all protection, for the money, what is the best value?
Well, it certainly is not the schedule of benefits offered by WSIB.
The company you are contracted with, and that requires you by law to insure yourself, needs to know you are covered. By getting good coverage, they can be given a copy and their liability is over.
WSIB reminds me of an option in life insurance known as AD & D (accidental death and dismemberment).
AD&D will double the amount of insurance if death is caused by accident. So, I suppose if you get diagnosed with cancer, it would be a good idea to drive off the nearest tall bridge to ensure your family gets enough money.
Crazy or what?
Give us a call, and we can take care of your needs properly. 1.866.856.6799
