Skip to content
{notification.title}
{notification.description}

Optional coverage for business owners

Optional coverage is available to self-employed people and business owners including sole proprietors, business partners and directors of corporations.  While you are not required to have coverage, it can benefit you if you become injured or ill because of your job. Benefits include:  

  • income replacement benefits  
  • payment of allowable medical costs  
  • travel expenses if travel is required for medical treatment  
  • permanent impairment awards  
  • vocational rehabilitation  
  • benefits for dependents in the case of a fatality 
Sign up for optional coverage

Calculating earnings

Directors with 50 per cent or more ownership 

To calculate earnings for Directors with 50 per cent or more ownership in a corporation, we add back the Director’s shareholding percentage of net business income and depreciation/amortization to your reported T4 income. 

Directors with less than 50 per cent ownership 

To calculate earnings for Directors with less than 50 per cent ownership in a corporation, we only consider reported T4 income. 

Sole proprietors and partners 

To calculate earnings for sole proprietors and partners, we add back the deductions taken for depreciation, amortization and business use of home expense to your reported net business income. 

For example, if your income tax return recorded net business income of $20,000, an amortization deduction of $5,000 and a business use of home expense deduction of $2,000, your earnings would be calculated as $27,000 ($20,000 + $5,000 + $2,000). 

Once we have calculated your earnings, income replacement benefits are based on the lesser of: 

  • the level of coverage you purchased 
  • the amount of earnings we can verify you earned in previous years. 

When we approve the level of coverage requested based on the information provided, your coverage level will remain in effect for the current and next year. You may adjust and re-calculate your earnings at any time.

Related links