Life Insurance & Disability Insurance Ontario

Alternatives to WSIB and WSIB

By Lina Demedieros, LMD Insurance & Wealth Management

As an Owner Operator (small business owner) what do you believe best serves your needs? Managing your overall risks; protecting your income and assets or implementing a legislated form of coverage that really gives you the run around to collect? You know the answer already “private insurance” not just an alternative to WSIB.

Private insurance will allow you to pick and choose what type of benefits you really need, take the risks you feel you can afford and take advantage of coverage you may have through your spouse. This allows you to maintain control of your own financial situation at all times.
Recently I attended a seminar for one of the largest providers of fleet insurance to the trucking community who hosted an event to owners of transport companies. The panel had WSIB, WSIAT lawyer, a representative from WSIB and a provider of alternatives to WSIB. No representation for the Owner Operator which left me completely shocked!

Naturally, the seminar certainly left many transport carriers believing that WSIB was the solution to protect their overall fleet rates as a result of possible exposure to statutory accident benefit claims. Then of course when I heard about the emphasis on how the trucking company exposes themselves to litigation my next thought was “hold on, the owner operator is not looking to sue anyone, he is just looking to get the job done and be paid fairly, all he expects is that you work with him on his goals WORK, PROTECT his interest in the most cost effective way since you understand the business so well and you understand the administration and compliance of a trucking company, while they deliver your much needed service”.

Well at the end of the day, when I saw my past in NOW the future it motivated me to talk to not only my Owner Operators but certainly some clients and prospects. Why the picture really needs to be painted properly and really if you take care of your owner operators and drivers they will take care of you; bottom line.

So what is in your best interest as an Owner Operator. Well, its not just an alternative to WSIB or WSIB, it is actually proper risk management. Majority of all long term claims that are life alterating are NOT as a result of an accidental injury but illness. My argument for over 13 yeasrs, if an Owner Operator was properly explained their overall exposure, how private insurance works, the need to protect their income from injury, illness and disease and the overall impact on their businesses; their would never be any need to even contemplate whether WSIB or alternative to WSIB what best suits the Owner Operators needs. Heck, we would not even see any statutory accident benefits being filed for under fleet policies, if they understood how fleet insurance worked. Owner Operators have an enormous amount of knowledge when it comes to operations “driving, safety and compliance”, they just don’t have the time to handle some of the administration which is why it is commonly left to the transport carrier. Properly educating Owner Operators posing no threat to any transport carrier or its fleet.

Oddly enough, no one really discussed the impact of WSIAT also on the Owner Operator, how long it took to collect and how rigid the system was but it all looked like they needed WSIB and alternatives were discussed but certainly not the importance of contracting and proper risk management to avoid statutory accident benefit claims. What’s a waiver anyway? Permission for something already any Owner Operator already has “common sense”.

Well, the truth is that neither WSIB or an accident policy will protect the owner operator. As for the Canada Pension Plan when all is fails, well the definition there is so rigid that the you must have one foot in the grave and one on this planet to collect a disability benefit. So, What is cost effective WSIB or Private Insurance?

When there is a conversion from WSIB to private insurance many Owner Operators ask really what method is the most cost effective and are they comparable. The answer is NO. Private Insurance supersedes the coverage afforded by WSIB, let us see how?

Workplace Safety & Insurance Board	Private Insurance
On the Job Coverage Only (Work Related Injury plus Illness)	24 Hour Coverage Injury optional illness coverage at Home, Work or Play. Covers any type of injury or illness
Extended Health (Work Related Only)	Extended Health (Blanket Coverage). Alternative to WSIB contracts may offer $10,000 to $100,000 of Accidental Medical Emergency coverage. Group or Individual Extended Health contracts offer blanklet coverage any type of medical coverage to the terms of the contract purchased.
Rehabilitation discretion of WSIB Return to work with Modified Duties	Unlimited Rehabilitation Benefit in good contracts, others limited to the limit within the terms of the contract. Return to work once client is able to return to work in his own occupation thereafter any occupation
WSIB doctor assessment of injury	Clients own doctor assessment
16 sprain & strain coverage	60 day coverage, options for higher sprain & strain coverage or no limit on sprain or strain Non Cancellable contracts with a 30 day wait offer NO limitation on Sprains & Strains
Coverage capped to reflect average industry wage 1st year capped at $22, 567.00. Normal Rate for Owner Operator $5.78 per $100 of replacement Income based on net $32,000 of replacement income. Annual Premium $1,849.60	Overall Maximum Combined of $6,000 monthly for both Loss of Income and Business Overhead Expense Reimbursement. Coverage based on Gross or Net Taxable Income. Average Rate for Injury Only Coverage $3.76 per day. Annual Premium of $1,349.88 or $112.49/mo. Add Extended Health Coverage Optional. Annual Premium $2,098.68.
LTD at discretion of WSIB	Long Term Disability to Age 65 or 70 based on any occupation, education, training and skill.
Integrated with CPP	Integrates with CPP
Accidental Death & Dismemberment $300,000	Accidental Death & Dismemberment up to $500,000
Specific to Employer’s Market	Specific to Small Business Owners needs
Mandatory for Employees, Optional for Business Owners
Inflexible to alternate coverage in place.	Flexible. Purchase coverage by assessing your overall needs.

The SECRET

The transport carrier is ONLY obligated to research good quality alternatives to WSIB and ensure that it meets at least provide similar or superior coverage to WSIB. When they see that an alternative will NOT meet the need of their contractual suppliers (Owner Operators) they look to a legislated type of program as a result of overall exposure to their fleet insurance. Then all of you who hate WSIB, the cost, the administrative nightmare and how limited the coverage is you will all be very angry at that time it will be too late. You will consider new occupation or continue to work without voicing your opinions; or voice your opinion without really able to provide this contractual suppliers of work to you. So what is the solution? STOP smell the roses. Market share does not equal quality coverage, nor does a product per say catered to your industry but a specialist who will protect you and be held professionally for their recommendations as we do.

At this time, we cannot blame the carriers, if you want answer you need to ask the question, probe and inquiry. As specialist in this market our goals is to provide you street products that you can get from any broker at a lower costs, understanding the impact on your overall income. If you feel that the plan you currently have does not meet your needs don’t kid yourself and hope that you will never have to use it. Just simply call us and ask to put in writing. We will tell you not only on the phone or in a verbal conversation but how it really matters, in writing.

At this time, we would like to thank all the Owner Operators who have supported us over the last 13 years and referred others and we salute you all, you really helped your fellow Owner Operator. We also thank you for helping your contractual employers understand the need for our services.

Don’t be a victim be a survivor and be sure to call us, we do deliver the goods on insurance not just move product.

As a specialist in this market, we have many with many transport carriers telling them the need to educate their Owner Operators on the “proper prescription” to being a successful owner operator. Inspite of the fact we only provide the financial risk management with a specialization in WSIB and alternative to WSIB, our goal is to ensure that the owner operator purchased “proper coverage” and not provide him with only the basics that will lead to the problem we experience today; a shortage of good drivers and owner operators.

The question that was left in my mind after leaving this seminar is why was a panel of lawyers, WSIB a provider of alternatives who has market share were brought in to discuss a topic that has created the controversy, negativity and no one addressing the real issue which is compensation and not alternatives to WSIB and WSIB.

For further information or receive a quote contact Lina Demedieros at 416-748-9992, by email at lina.d@lmdfinancial.com. OTN