Workers' compensation is a government program in which employers purchase insurance to cover the cost of their employees' compensation claims for work-related injuries or industrial disease. The two types of compulsory Workers' Compensation Board (WCB) coverage that concern engineering employers involve Schedules 1 and 2 of the Workers' Compensation Act. Most industries and all technical and business services - including consulting engineering - are covered under Schedule 1. Since they are collectively liable for workers' compensation costs, Schedule 1 employers are assured of fairly constant premium rates, which depend on their type of business activity more than their individual safety record. Ontario crown corporations, ministries and agencies are covered under Schedule 2. Schedule 2 employers are individually liable to pay the full cost of their workers' compensation claims. To avoid individual liability, Schedule 2 employers may apply for coverage under Schedule 1 instead. However, transfers between schedules are at the WCB's discretion. Schedule 1 employers should compare the costs and benefits of Schedule 1 with those of Schedule 2, in their particular situation. They should also be aware that they will have to pay a special assessment, if they decide to switch back to Schedule 2 coverage.
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