Policy

The WCB may approve two types of optional coverage:  voluntary coverage and personal coverage.  When an application for optional coverage has been approved, the individuals covered are eligible to claim benefits under the Act as workers.  They are also protected from civil action resulting from compensable personal injury, while they are acting in the capacity for which they have coverage.

This consolidated policy is effective June 1, 1998 unless noted otherwise.  Any exceptions are noted within the specific policy sections.

Interpretation 

1.0 Optional Coverage

Optional coverage is effective the date an application is approved by the WCB, or a later date if requested by the employer (see Policy 06-03, Premiums).  Coverage will not be made effective prior to the date of application.  Claims filed for an accident that occurred prior to the effective date of the coverage, will not be accepted.

2.0 Voluntary Coverage

An employer whose operations are in an industry exempted under Schedule A of the General Regulations (also called "an exempt industry"), may apply for voluntary coverage.  Once approved, the voluntary coverage provides workers' compensation insurance to all the employer's workers in that industry.  The employer may also apply for personal coverage.

3.0 Personal Coverage

Personal coverage is workers' compensation insurance available for individuals who employ workers or who are:

• proprietors
• partners in a partnership
• directors of a corporation or society, or
• members of an association, board, authority, commission, or foundation.

Personal coverage protects the individual only while working in the industry for which coverage was approved.

4.0 Protection from Civil Action

Under s. 23(1), injured workers who suffer a compensable injury are barred from bringing a civil action for personal injury against any employer or worker when the conduct of that employer or worker that caused or contributed to the injury arose out of and occurred in the course of employment in an industry to which the Act applies.  The injured worker’s legal representatives, dependants (in the case of a compensable fatality), and employer are also barred from bringing civil action.

The protection provided by s.23(1) of the Act applies only to actions for personal injury.  It does not apply to civil actions for property damage (for example, vehicle damage in a motor vehicle accident).

Employers and workers who would not otherwise come under the Act are protected from civil action for personal injury under s.23 when voluntary coverage and/or personal coverage is in effect.  This includes:

• Employers and workers in exempt industries, when there is an approved application for voluntary coverage
• Directors of a corporation with approved applications for Personal Coverage

Note, however, that the s.23(1) immunity from lawsuit does not extend to civil lawsuits for personal injury commenced by individuals who are not covered under the Act (thus, a plumber with Personal Coverage would not be immune from a lawsuit commenced by a private homeowner).

Not all employers, proprietors, or partners in a partnership need to have Personal Coverage in order to have protection from civil action for personal injury.  Individuals and partners in a partnership who employ workers in industries under the Act are protected under s.23(1), regardless of whether they have Personal Coverage.  Proprietors and partners in a partnership that does not employ workers are also protected under s.23(1) if they are deemed to be workers of a principal in an industry under the Act.

 

Please see Part II for additional information on the following subjects:

Application

1. Voluntary Coverage
2. Personal Coverage