As the landscape of insurance for Owner/Operators (O/Os) in Ontario evolves, most fleets have allowed their O/Os to opt out of WSIB (Workplace Safety and Insurance Board) and purchase a private WSIB Alternative solution.  To do so, the O/O must complete WSIB’s 10687A document, signed by the fleets and receive confirmation of independent status back from the board. The new 10687A process now includes the O/O’s VIN on the status letter they receive. 

While opting out of WSIB can offer certain advantages, it is crucial for fleets and brokers to carefully evaluate the alternative coverage options to ensure comprehensive protection and compliance with legal requirements.

Understanding WSIB Alternatives

WSIB provides coverage for workplace injuries, but it only covers incidents that occur on the job. Many O/Os are opting for private insurance alternatives that offer 24/7 coverage, including accidents that happen off the job, such as at home or while on vacation. This can provide peace of mind and more comprehensive protection for O/Os.

Key Considerations for Alternative Coverage

When selecting an alternative to WSIB, it is essential to consider several critical factors to ensure the coverage is adequate and meets the needs of O/Os:

• Accident Disability Coverage: Look for policies that offer first-day accident disability benefits without a waiting period. Benefits should be based on gross earnings rather than net, and the definition of “Own Occupation” should extend for at least five years. Benefits should ideally be payable until age 70.
• Comprehensive Benefits: Ensure the policy includes coverage for accidental death and dismemberment, accident medical expenses, rehabilitation, retraining, and other essential benefits such as spousal and dependent education benefits, home and vehicle modification benefits, and coverage for post-traumatic stress disorder following a serious motor vehicle accident.  Be sure to ask what the limits are for each benefit.  Example,  an insurer may cover up to $7,000 for physio or chiropractic care, but the policy may have a cap (example $30 or $40 per visit) on what each benefit pays.   As the average physiotherapist charges $100-$125 per visit,   any shortfall of these benefit can be directed to the fleets auto policy for MVA injuries (Statutory Accident Benefits – SABs).    
• Emergency Travel Medical Coverage: If required, the policy should include emergency travel medical coverage with a high limit (e.g., $5,000,000) and cover both on-the-job and off-the-job incidents. It should also be the first payor to the fleets auto policy and cover stable pre-existing conditions.  Certain programs offer excess only coverage (2nd payor to the fleets auto policy) and the majority of programs require the O/O’s condition to be stable for at least 90 days.  

The Role of Insurance Brokers

Insurance brokers play a crucial role in guiding fleets and O/Os through the process of selecting appropriate WSIB alternatives. Brokers should:

• Provide Expert Advice: Understand the specific needs of O/Os and offer tailored advice on the most suitable coverage options. This includes reviewing policy terms, definitions, and exclusions to prevent unexpected exposures.
• Ensure Compliance: Help fleets comply with legal requirements by ensuring that O/Os who opt out of WSIB have the necessary documentation, such as the 10687A WSIB Independent Status Document. Determining worker/independent operator status – Transportation industry and Optional insurance request/change (wsib.ca)
• Facilitate Premium Payments: Recommend systems where insurance premiums are deducted from O/Os’ settlements to ensure continuous coverage and avoid lapses.
• Partner with an Expert: Ensuring Comprehensive Coverage for Your Fleets: Brokers must be aware of the potential risks associated with offering programs that might leave O/Os or fleets inadequately covered. Insufficient coverage can result in significant consequences. To mitigate these risks, partnering with an expert is crucial. By collaborating with a specialist, brokers can help fleets make informed decisions and choose the most suitable coverage for their O/Os, protecting against unexpected liabilities and providing peace of mind. I would be delighted to discuss how we can support you.