Coverage

Workers Compensation Board of Prince Edward Island

Coverage

On Prince Edward Island, most industries are required by law to have coverage under the provincial compensation system.

As an employer, you are also responsible for confirming the contractors and subcontractors you hire have coverage, also known as clearance, with the WCB.

The Workers Compensation Act General Regulations describes the industries and employers that are not covered under the Act. If you are one of these employers, you may choose to be covered.

Employers in excluded industries can apply for Optional Coverage.
Proprietors and partners of a non-incorporated business, owners and directors of a corporation and independent operators can apply for Personal Coverage.

Optional Coverage

If you are an employer in an industry not covered by the Act, you can apply for Optional Coverage. Simply register with the WCB using WCB Online Services or submit an Employer Registration Form.

If you would like more information about Optional Coverage, please contact us.
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Personal Coverage

Personal Coverage is voluntary, and as a proprietor or partner of a non-incorporated business, owner or director of a corporation or an independent operator, you may apply for coverage.

You can apply for Personal Coverage by completing a Personal Coverage Application. If you believe you are an independent operator, you must also complete an Independent Operator Checklist.

To find out if Personal Coverage is right for you, please review our Personal Coverage Frequently Asked Questions.

If you would like more information abour Personal Coverage, please contact us.
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Clearances for Contractors and Subcontractors

As an employer, it is in your best interest to request a clearance letter from the WCB whenever you hire contractors or subcontractors who have workers. The clearance letter confirms that the contractor's account with the WCB is in good standing.

Clearance ensures that the employer is protected and that all employers carry their fair share of the cost of the compensation system. Without clearance, as an employer, you may be liable for your contractors or subcontractors assessments if they have not paid assessments for their workers.

Obtaining a clearance letter for your contractors and subcontractors can be done in two ways:

Electronically, any time and anywhere you have access to the Internet, with the WCB's Online Services.
By requesting clearance through WCB Employers Services. Simply contact us.

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More information about coverage and clearance can be found in the Information for Employers booklet and in the WCB employer services policies.

If you have any questions, or would like a copy of a form or publication, please contact us.

December 13, 2021

Experience Rating Program Changes

Changes will soon come into effect for the Workers Compensation Board’s Experience Rating Program. The Experience Rating Program offers a financial incentive to employers to invest in safety and work disability prevention programs by adjusting assessment rates based on their claims cost history. There are two main changes to the Experience Rating Program: Previously, the program was limited to employers who have paid at least $3,000 in total WCB assessments over three years. We will now include all employers in the experience rating program in order to promote a culture of safety in both large and small workplaces. The maximum surcharge for employers was moved into closer alignment with other jurisdictions by adjusting the order in which steps are applied to calculate their annual rate adjustment. The new enhancements will encourage safety and proactive prevention of work disability, expand access to more employers and will see an adjustment to the formula used to calculate rates to limit the negative impact on small employers. The changes are a result of an extensive program review to ensure it is effective, fair and easy to understand. As a result of the review, there are additional recommendations under consideration that could be introduced in the next phase. The above changes to the Experience Rating Program will come into effect January 1, 2022. To read more, check out the Frequently Asked Questions on the WCB website.

November 30, 2021

Recent Amendments to Workers Compensation Act

New amendments to the Workers Compensation Act were recently approved in the fall 2021 sitting of the Legislative Assembly that help clarify and modernize the current legislation. Among the recent amendments to the Workers Compensation Act and regulation were changes to the indexation of compensation benefits, which would increase the amount of benefits paid to workers on long term benefits and survivors of fatally injured workers. Indexation refers to the adjustments made to workers compensation benefits to address increases in the cost of living each year. Previously, the legislation allowed for annual adjustments to extended wage loss benefits, pensions and survivor benefits based on 80% of the Consumer Price Index, up to 4% of the benefit amount. The adjustment is applied in July each year. The new changes would see the annual indexation of Extended Wage Loss, pension and survivor benefits increased to 100% of the annual change in the Consumer Price Index for PEI, up to a max of 4%. “These changes will help to ensure that WCB claimants and surviving family members can keep up with the rising costs of living,” said Jim MacPhee, Chair of the Workers Compensation Board of Prince Edward Island. Other notable amendments include revised definitions of “worker” and “accident”, as well as the removal of the exclusion of the construction industry under return to work provisions. These amendments to the Workers Compensation Act came into effect on November 17, 2021. Increases to the indexation of WCB extended wage loss, pension and survivor benefits will take place when the next annual calculation occurs on July 1, 2022.

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