Worker’s Compensation

Worker’s Compensation is a broad term, used to refer to the statues that provide financial awards for workers who are involved in cases of employment-related injuries. Benefits include wage loss replacement, medical expenses, rehabilitation services, disability income, and death benefits paid to or on behalf of the injured worker and/or his/her dependents.

In Ontario, the Workplace Safety and Insurance Act provides that certain classes of employers, largely in the public sector, may self-insure their worker’ compensation risks. Commonly they are referred to “Schedule 2” employers. As a form of stop-loss insurance, Excess Indemnity policies limit their exposure to catastrophic claims.

As a risk management tool, self-insurance provides incentives to reduce the frequency and the severity of claims. Unlike experience rating plans, 100% of the saving accrues to the employer.

During the past 20 years, we have produced analyses and studies for numerous public sector employers in Ontario, and we have assisted with 201 transfers from Schedule 1 (fully insured, but with a massive unfunded liability) to Schedule 2 (self-insured). Our clients have included School Boards, Colleges of Applied Arts and Technology, Municipalities, Municipal Homes for the Aged, Housing Corporations, and Public Health Units. We continue to provide Excess Indemnity and Occupational Accident insurance for our clients.