Optional coverage for independent contractors

There are two common reasons individuals seek optional coverage as independent contractors or small employers: 

to get clearance to enter commercial relationships with other businesses who need this condition to enter a contract
to ensure coverage for themselves if they are injured

When a self-employed person or small business applies for personal coverage with the WCB, the WCB must determine: 

the operations of the business 
the nature of the commercial activity 
the reason for purchasing coverage.

The eligibility requirements and consequences of WCB coverage are distinct depending on whether coverage is for commercial work with other businesses or for work with consumers. 

Independent contractor criteria

The WCB decides if you are an independent contractor based on several criteria which, taken together, prove that the service provider is significantly and economically independent from the contractors who hired them. For example, do you: 

employ other workers and meet a minimum payroll threshold? 
work mainly within your own business establishment? 
have multiple customers? 
own or lease a major piece of equipment? 
control your work and payment schedule?

If the WCB decides you are an independent contractor, you must purchase coverage for your workers, but you can also purchase coverage for yourself as an employer. If you don’t employ workers, you can purchase Personal Coverage as an independent business. 

If you do not qualify or do not purchase this coverage, you and your workers will be considered workers of the contractor who hired you. 

How much does personal coverage cost?

The WCB rate is the same for personal coverage as it is for workers in the same industry classification. Your WCB rate is based on your industry classification (a group of similar businesses) and your past claims costs (if any). Your premium is based on your WCB rate and how much of your income you want to insure.

How personal coverage premiums are calculated:

How much personal coverage should I buy?

You can purchase WCB coverage for any amount of annual income within the range set by the WCB. For 2025, the minimum is $30,140 and the maximum is $167,050.

When deciding how much coverage to purchase, you should consider your income level and your other sources of coverage. Buying too little coverage could mean your benefits will not be adequate, but buying more coverage than you need could mean you pay higher premiums than necessary. Before making your decision, you may want to consult with your financial advisor.

Replacement benefits

If you have personal coverage from the WCB and are unable to work due to a work-related injury or illness, you may receive income replacement benefits. We will decide if you are eligible for full or partial income replacement based on medical information that shows the injury or illness affects your ability to participate in business operations and requires time away from work.

What you receive in income replacement benefits depends on several factors:

your loss of earnings due to the injury
the level of personal coverage you purchased
any benefits you receive from other sources for the same injury or illness

The following table shows approximate values of income replacement benefits based on 90 per cent of net verified earnings for a single person with no tax credits or deductions.

Personal coverage levels most frequently purchased for 2025	Approximate bi-weekly income replacement benefit at 90% of net earnings* (calculated for single person, claiming only the personal tax credit)
Annual wage	Bi-weekly income
$30,140 (minimum coverage level)	$880
$30,000	$908
$40,000	$1,055
$50,000	$1,286
$60,000	$1,498
$70,000	$1,709
$80,000	$1,949
$90,000	$2,162
$100,000	$2,365

* If your net earnings are less than or equal to minimum annual earnings, your benefit rate will be 100% net earnings

All calculations take into consideration that business owners are not required to pay Employment Insurance (EI) and so probable EI premiums have not been factored into the above calculations.

Wage loss benefits for business owners are based on an owner’s ability to continue to operate the business. The above amounts are based on the business owner being unable to do any of his or her duties that they did prior to the injury or illness. If the business owner is still able to undertake some of their pre-injury duties, the level of wage loss benefits they receive will be reduced accordingly.

If you receive benefits from another insurance provider for the same injury or illness, these payments may be considered collateral benefits and may reduce your WCB wage loss benefits.

If you are 61 years of age or older at the time of the work-related injury or illness, wage loss benefits will not be paid beyond 48 months after the injury date.

Proof of earnings and verification

If you decide to buy coverage for more than the minimum income level, you will need to provide proof of your earnings to receive income replacement benefits above the minimum.

All you need to do to provide proof of your earnings is provide the WCB with permission to access your income tax returns from Canada Revenue Agency (CRA) or another independent source – we’ll do the rest.

You can provide proof of your earnings when you purchase/renew your personal coverage or when you make a claim for income replacement benefits due to a work-related injury or illness. By providing proof of earnings when you purchase or renew your coverage, you will receive the full income replacement benefits you are entitled to more quickly, should you need to make a claim. If you decide to provide proof of your earnings when you purchase or renew your coverage, your verified earnings level will remain in effect for the current and next year.

If you choose not to provide proof of your earnings at the time of purchase/renewal, in the event of a work injury or illness, your income replacement benefits will be based on the minimum level of coverage at first. Your benefits will be retroactively adjusted once we have been able to verify a higher level of earnings.

If an injury were to occur, and wage loss benefits are approved, we will review your income tax returns and supporting documents from the previous one to two years, and in some cased up to the previous five years. We may obtain this information from Canada Revenue Agency (CRA) or another independent source. On occasion, we may require additional documents such as your corporate income tax return and/or Statement of Business or Professional Activities to verify your earnings.

Note: If you purchase more than the minimum, and your annual income falls between when you purchase coverage and when you make a claim for income replacement, you may ask us to refund the difference between the premium you paid and the premium you would have paid based on the verified lower earnings.

FAQs

What happens if I did not provide proof of earnings before making a claim?

If you purchased more than the minimum level of coverage and did not previously provide proof of your earnings, you will receive income replacement benefits based on the minimum coverage level until we verify your earnings. Usually, we verify your earnings through income tax records. Once we have verified your earnings, we will recalculate your income replacement benefits based on the level of coverage you purchased or your verified earnings, whichever is less. If this increases your income replacement benefit, you will receive a retroactive payment to make up the difference.

If you purchased more than the minimum level of coverage and previously verified your earnings, you will receive income replacement benefits based on the level of coverage you purchased and your loss of earnings.

What if my verified earnings are less than the minimum level of coverage?

Your income replacement benefits will be based on the minimum even if your verified earnings are less than the minimum, as long as there is a loss of earnings.

How does my ability to participate in my business after my injury or illness affect my income replacement benefits?

Income replacement benefits for business owners are based on your ability to continue to operate the business.

If your injury means you cannot do any of your regular duties, you will receive full benefits (generally 90 per cent of net earnings covered).

If you are able to do some of your pre-injury duties, you will receive partial income replacement benefits based on how your injury affects your earnings. Your WCB representative will review your medical restrictions and consult with you to determine your loss of earning capacity as a percentage of your verified earnings.

For example:
You purchased the 2025 minimum amount of coverage at $30,140. Your work injury or illness means that you can only participate in your business at about 40 per cent of what you usually do.

We calculate your reduced earnings based on your verified earnings and your work capacity:

$30,140 x 40% = $12,056
We assume you are still able to earn $12,056 per year from your business and deduct this amount from your earnings before calculating your income replacement benefits.

$30,140 – $12,056 = $18,084
Your income replacement benefits will be based on the lost earnings of $18,084 per year.