Starting January 1, 2013, there will be significant changes to Workplace Safety and Insurance Board (WSIB) coverage for those involved in the construction industry. All construction companies (including independent operators, sole proprietors, partners in a partnership and executive officers in corporations) must reconsider WSIB coverage. Any companies that hire contractors or subcontractors must have a valid WSIB clearance certificate from the Board in advance of any work beginning.

Mandatory Coverage in the Construction Industry

Currently, there are exemptions available that allow people to essentially elect out of WSIB coverage. Historically, anyone who was self-employed, owned a company or acted in an executive management role was not required to have WSIB coverage. Starting in 2013, most of these exemptions will no longer be available to the construction industry, and all construction companies will be required to register with WSIB and pay insurance premiums on all insurable earnings, including officers and owners.

Limited WSIB exemptions will continue to exist in the following circumstances:

1. Home Renovators will be able to continue to elect not to carry WSIB coverage if they work exclusively in home renovation and meet all of the following requirements:

  • Do not employ any workers
  • Do all work directly for the homeowner
  • Receive payment directly from the homeowner

2. Executive Officer/Partner – corporations or partnerships, whether they employ workers or not, may select one executive officer or partner to apply for an exemption. In order to qualify for the exemption, the individual must not perform any construction work at all.

How Will This Impact You?

  • Sole Proprietor/Corporation/Partnership with Employees; Currently Registered as Employer If you already registered, you must begin to include the insurable earnings of owners and officers effective January 1.
  • Sole Proprietor/Corporation/Partnership with No Employees; Currently Registered For Optional WSIB Insurance Your optional WSIB Insurance will be cancelled effective December 31, 2012. WSIB will send you communication with details, and you will be required to report your actual earnings beginning January 1, 2013.
  • Sole Proprietor/Corporation/Partnership with No Employees; Currently Not Registered You are required to register with the WSIB and begin to report and pay premiums based on your earnings effective January 1, 2013.