When operating a business, ensuring you and your workers are consistently protected is critical. A big portion of this is making sure you understand the difference between WSIB and business insurance. Depending on the type of business you run, you will want to know how much insurance coverage you need to keep your business secure.
WSIB and Business Insurance: What is WSIB in Ontario?
Ontario’s Workplace Safety and Insurance Board (WSIB) is a no-fault workplace insurance business system. When comparing business insurance and WSIB, there are many differences. When it comes to WSIB, employers pay WSIB premiums; eligible injured or ill workers will receive wage-loss benefits, medical and return-to-work support in the event of an accident.
In exchange, workers give up their right to sue their employer for workplace injuries. With WSIB, employers are legally protected, but only against lawsuits from their own workers for workplace injuries covered by WSIB.
Who Must Register For WSIB?
When it comes to WSIB, coverage is mandatory for most industries listed in the Workplace Safety and Insurance Act, Schedules Part 1 and 2. In some cases, sectors may not be mandatory and can be applied at the user’s discretion.
WSIB does not automatically cover owners, sole proprietors, partners, or executive officers. Instead, they may choose to apply for WSIB optional insurance. Similar to normal WSIB, this is not commercial business insurance. Instead, it is a WSIB-specific program that will provide coverage for those injured who aren’t otherwise eligible.
What WSIB Doesn’t Cover?
When it comes to work-related injuries to covered workers, benefits such as health care, wage loss and employer legal immunity are all within WSIB’s fence. This, however, applies only to worker injury claims.
When it comes to stuff outside WSIB’s fence, it pretty much includes anything not tied to that definition. This can include property damage and third-party injuries to the public and customers. At the same time, auto accidents, professional errors, cyber incidents, theft/fraud, and lost income from disasters are not covered. This is where commercial business insurance comes into play. Though WSIB covers a lot, going without business insurance is never recommended.
Protect Your Business
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What Is Business Insurance?
Business Insurance protects you from what WSIB can’t. From property damage to operational disruptions to a host of other operational risks, it is critical to safeguard your business.
Unfortunately, WSIB alone isn’t enough to fully protect your business. To be fully insured and protected, you’ll want the right commercial insurance policies in addition to WSIB. Let’s take a look at a baseline list of commercial policies that are recommended in Ontario for small businesses.
1. Commercial General Liability Insurance
Commercial General Liability insurance covers lawsuits and claims brought by third parties, such as customers and visitors. More specifically, it will cover you for claims resulting in bodily injury or property damage, personal injury, and certain tenants’ legal liability.
2. Errors And Omissions Insurance
Errors and Omissions Insurance, also known as Professional Liability insurance, is another crucial type of insurance. This protects against any allegations of negligence, errors, or omissions in the delivery of professional services. Professional services can include consulting, design, tech services, accounting and engineering.
If you provide any services or advice in Ontario, then this insurance is not just helpful, but essential!
3. Product Liability Insurance
Product liability insurance is important for businesses because it covers any injuries or damages that are allegedly caused by the products you sell. This can come from manufacturers, importers, or private-label sellers.
4. Cyber Liability Insurance
Now more than ever, Cyber Liability Insurance is a crucial aspect for any business that operates even remotely online. Cyber Liability insurance will help you pay for breach response, data restoration, cyber business interruptions, and liabilities to affected individuals or partners after attacks such as ransomware.
5. Commercial Property Insurance
Commercial Property Insurance is another policy you will want to have if you have a physical space as part of your business. Not only will it cover your building, but it will also cover most of the equipment needed to run your business. Equipment can include tools and electronics, as well as any inventory and furnishings. Commercial Property insurance will cover you for perils such as fires, water damage, theft and vandalism.
6. Business Interruption Insurance
Business Interruption Insurance will cover any lost income if a covered loss shuts down operations. This is critical in keeping your business afloat.
7. Commercial Auto Insurance
As you may have guessed, Commercial Auto Insurance will cover any vehicles that are used for businesses. This will include liability for accidents, collision/comprehensive, and optional endorsements.
If a staff member uses their own vehicles for business errands, Commercial Auto Insurance will also cover non-owned auto.
8. Umbrella Insurance
Umbrella Insurance, also known as excess liability insurance, will limit above your commercial general liability, auto, and sometimes error and omissions insurance. This is often a requirement in municipal and large commercial contracts.
9. Commercial Crime Insurance
Commercial crime insurance will cover your business from any theft or burglary. This will include any employment dishonesty/fidelity losses, as well as social engineering fraud.
10. Tools And Equipment
Tools and equipment insurance is important if you’re in fields such as contracting or other trades. This insurance will cover you for mobile equipment, tools, and any machinery used off-site.
WSIB and Business Insurance: Choosing The Right Combination
Choosing the correct insurance isn’t simply about purchasing every type of insurance in the world. Instead, you want to tailor your protection to your business’s operations. Figuring out what you need outside the WSIB can be difficult, but by asking yourself a few streamlined questions, you can determine exactly what you need. Let’s take a look:
1. Understand Your Risks
Think about how your work operates, the type of employees you work with and what would happen if your business were to shut down unexpectedly. Who could be injured? What assets can’t you operate without? What promises do you make in contracts? If losing something will cost you money, time, or reputation, ensure it.
2. Talk To A Broker Who Is Familiar With Your Industry, WSIB, and Business Insurance
Commercial insurance can be complex, and many gaps can appear unexpectedly. A broker will help you figure out where your coverage may not cover you and identify exposures WSIB does not cover.
3. Bundle Coverages
Bundling policies with one insurer can help you lower your premiums and avoid any coverage gaps. This also means fewer insurers, simpler claims and stronger coordination between policies.
4. Commercial Insurance Is Key
Make sure you never skimp out on commercial insurance and assume WSIB will have you covered.
To summarize, keep in mind that WSIB will cover you for:
- Workplace injuries/illnesses
- Medical care and wage-loss benefits
- Employer protection from worker injury lawsuits
On the other hand, Commercial insurance will cover you for:
- Your property
- Any equipment you use
- Any vehicles you use
- Customer injuries
- Contract disputes
- Cyber attacks
- Product failures
- Theft and Fraud
5. Revisit Your Coverage Annually
A lot can change in a year, especially when it comes to your business. When it comes to insurance, you’ll want to make sure you review your policy annually. Make note of any:
- New hires
- New equipment
- New locations
- New services
- Larger contracts
Any of these can create holes in your insurance policy. By annually reviewing your business insurance and WSIB coverage, you can ensure your coverage grows as your business does.
Do You Need WSIB and Business Insurance? Final Answers for Employers
At the end of the day, both WSIB and commercial business insurance are critical to having a smooth-running business. WSIB provides essential coverage for workplace injuries, protecting employers from employee-related claims, while commercial business insurance ensures your business runs smoothly when the unexpected occurs. By understanding your risks, reviewing your coverage, and working with an experienced insurance broker, you can ensure you and your business remain protected at all costs.
Remember, if you are in the market for business insurance, don’t hesitate to reach out to us at isure today!
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