Employer Liability Insurance
Are you an employer who pays into a provincial workers’ compensation fund? You’re still not completely protected from liability. And if you’re not participating in your province’s workers’ compensation fund, you don’t have any protection. Employer Liability Insurance is coverage that protects employers in Canada from the potentially devastating costs of work-related illness, injuries and deaths. This article provides the information and resources you need as an employer on Employer Liability Insurance.
The Need for Employee / Employer Protection
Why Do You Need Employee / Employer Protection?
Accidents happen. They are as inevitable as death and taxes. The last thing we want is for someone to be injured, or worse, on the job. But despite our best efforts and intentions, there is no workplace that is 100% exempt from the possibility of an injury, or injuries, taking place on its premises. There is also the possibility that an employee(s) in the line of duty is injured outside of the workplace – even outside your jurisdiction.
As the employer, you are generally held legally responsible.
Is Employer Liability Insurance for Employers Exempt from WCB Coverage?
Employers who are exempt from paying into their province’s workers’ compensation fund and choose not to do so are exposed to the full weight of the financial and legal repercussions a work-related injury or death can cause. Those repercussions can include paying for:
- Lost wages
- Medical costs
- Legal fees to defend a lawsuit
- Awards and settlements
- All of the above
It’s common knowledge that an employee injury (or multiple employee injuries) can cost an employer hundreds of thousands, and into the millions of dollars – especially if the claim involves a persistent injury or permanent disability.
Employer liability insurance, not to be confused with Employer Practices Liability (EPL) insurance, is coverage that can be added to a Commercial General Liability policy and is designed to protect an employer from those costs. Unlike Workers’ Compensation, employer liability is not no-fault, meaning that employer negligence has to be proven for the employer to be liable.
Employer Liability Insurance for Employers Who Have WCB Coverage
Think your Workers’ Compensation coverage means you’re out of the woods? Think again.
If the workers’ compensation board in your province denies a claim or the claim is not applicable, your employee can file a lawsuit against you. With personal injury lawyers working on contingency and offering free consultations, it can cost an injured employee nothing but his or her time to meet with a lawyer before a lawsuit is filed against you.
Situations where you may be liable despite having workers’ compensation include: failure to maintain your premises or equipment, and negligence in protecting your employees from injury.
Contact us to find out exactly what liability you face even with workers’ compensation coverage.
What is a Contingent Employers Liability (CEL) Plan And Its Coverage?
Contingent Employers Liability Insurance in Canada: This insurance is for employers who pay into a workers’ compensation plan is called Contingent Employers Liability (CEL). Like employer liability insurance, it can be added to a Commercial General Liability policy and is also not a no-fault coverage.
Employer Liability Insurance in Two Easy Steps
Employers without WCB Coverage
Employers with WCB Coverage
Workers’ Compensation Board Information by Province
We’ve compiled the contact information for each province’s respective workers’ compensation board. To confirm that your business is legally exempt from registering with your province’s WCB, we highly recommend contacting them to make sure you are not in violation of provincial statute – which could result in hefty fines.
Please keep in mind that if you are exempt, optional WSIB coverage is no-fault. This means claims can be paid without an inquiry as to the reason for an injury, which can lead to more claims being paid out and therefore higher premiums. Employer Liability Insurance is not no-fault and employer liability has to be proven. Contact us for more information.
Newfoundland and Labrador
146-148 Forest Road
P.O. Box 9000, Station B
St. John’s NL A1A 3B8Telephone: 709-778-1000
Prince Edward Island
14 Weymouth Street
PO Box 757
Charlottetown PEI C1A 7L7
Toll-Free in Atlantic Canada: 1-800-237-5049
5668 South Street
P.O. Box 1150
Halifax NS B3J 2Y2
1 Portland Street
P.O. Box 160
Saint John NB E2L 3X9
1199, rue de Bleury
C.P. 6056, Succursale «centre-ville»
Montréal QC H3C 4E1
200 Front Street West
Toronto ON M5V 3J1
Winnipeg MB R3C 4W3
Toll-Free in Canada: 1-855-954-4321
200, 1881 Scarth Street
Regina SK S4P 4L1
P.O. Box 2415
Edmonton AB T5J 2S5
Toll-Free in Alberta: 1-866-922-9221
Toll-Free outside Alberta: 1-800-661-9608
Claims Toll-Free Fax: 1-800-661-1993 (in Canada)
Fax claims to: 780-427-5863 (outside of Canada)
P.O. Box 5350
Vancouver BC V6B 5L5
Toll-Free in Canada: 1-888-967-5377
401 Strickland Street
Whitehorse YT Y1A 5N8
Toll-Free in Canada: 1-800-661-0443
Northwest Territories / Nunavut
P.O. Box 8888
Yellowknife NT X1A 2R3
Need Help Navigating Employer Liability? ALIGNED Has The Insurance Solutions For You
At ALIGNED, our dedicated insurance brokers work with you to provide the coverage you need to protect you from liabilities as an employer. Protect yourself from the legal repercussions of work-related lawsuits.