What It Is
The Workers’ Compensation Board/Commission is a provincial no-fault compensation system. If a worker is injured on the job or develops an occupational illness, medical treatment is covered, and a portion of lost income is compensated. No one argues about “who was at fault.”
But there’s a trade-off: in most cases, both the employee and the employer waive the right to sue each other. The only exceptions apply to claims involving third parties. In other words, the system is built on mutual protection: the worker receives guaranteed benefits, while the business is protected from lawsuits.
What “At the Workplace” Really Means
One of the biggest limitations of Workers’ Compensation is that it only covers injuries and illnesses that occur arising out of and in the course of employment.
It’s not just about being “on the clock” — where and how the incident occurs is crucial.
📌 Example:
A truck driver finishes his shift, locks the lockbox, steps out of the truck, and falls, breaking his leg.
➡️ The workday is officially over.
➡️ The location is no longer considered the workplace.
❌ In this case, Workers’ Comp will not cover the accident, because it happened after work was completed.
Takeaway: Workers’ Compensation only protects you while performing work duties. Anything that happens on the parking lot, on the way home, or after hours is usually not covered.
Workers’ Compensation Doctors
Another important detail is who decides your treatment. After a workplace injury, you are referred to doctors and therapists assigned directly by the Workers’ Compensation system.
This means:
You don’t choose your doctor.
These medical professionals ultimately work for the WCB system.
In practice, injuries are sometimes downplayed, which can reduce the benefits you receive.
This lack of control over your care is one of the biggest frustrations many injured workers experience.
How Much They Pay (Net % + MIE 2025)
Each province sets both the benefit rate (percentage of net income covered) and the MIE — Maximum Insurable Earnings (the income ceiling above which no compensation is paid).
Alberta: 90% net | MIE = $106,400 | COLA = 2.35%
Ontario (WSIB): 85% net average earnings | MIE = $117,000
BC: 90% net | MIE = $121,500
Manitoba: 90% net | MIE = $167,050
Saskatchewan: 90% net | MIE = $104,531
Quebec (CNESST): ~90% net | MIE = $98,000
New Brunswick: 90% net | MIE = $84,200
Nova Scotia: 75% net for first 26 weeks, then 85% | MIE = $76,300
PEI: 90% net | MIE = $82,900
Newfoundland & Labrador: 85% net | MIE = $79,345
📌 Benefits are non-taxable, but they are reported on your tax return (T5007).
Why It’s Often Not Enough
While Workers’ Compensation is essential, it’s far from complete protection:
❌ It only applies to work-related events. Illnesses, injuries at home, during sports, or while traveling are excluded.
❌ Benefits are based on your verified income at the time of injury. If you’re self-employed and your income has dropped, your payout will be reduced — even if you purchased the “maximum” optional coverage.
❌ Doctors work for WCB, not for you — often minimizing the severity of injuries.
❌ MIE limits apply. If you earn more, anything above the ceiling is not insured.
My Practical Advice
✅ Maintain the minimum Workers’ Compensation coverage required by law or contract.
✅ Supplement it with private Disability Insurance for real protection:
24/7 coverage (not just “on the job”)
The freedom to choose your own doctors and clinics
Non-integrated benefits (private DI can stack on top of WCB)
Flexible benefit limits and riders tailored to your income
Final Thought
Workers’ Compensation is the foundation. But if you want true financial security, freedom of medical choice, and income protection in all life situations — private Disability Insurance is the missing piece.