If you've been injured at work in Ontario, understanding your options for compensation is critical. The Workplace Safety and Insurance Board (WSIB) provides benefits to injured workers, but it also limits your ability to sue your employer. However, there are situations where a personal injury lawsuit may still be possible—and could result in significantly higher compensation. Here's what every Ontario worker needs to know.
Understanding the WSIB System
WSIB is Ontario's no-fault workplace insurance system. Most employers in Ontario are required to register with WSIB and pay premiums. In exchange, their employees receive automatic coverage for workplace injuries—but give up the right to sue their employer for negligence.
This "historic trade-off" means injured workers get guaranteed benefits without having to prove their employer was at fault. Benefits include: Loss of Earnings benefits (85% of pre-injury take-home pay), Healthcare benefits for treatment, Non-Economic Loss awards for permanent impairment, and Labour Market Re-entry assistance.
However, WSIB benefits are often significantly lower than what you might recover in a personal injury lawsuit, especially for serious injuries.
When Can You Sue Despite WSIB Coverage?
While you generally cannot sue a WSIB-covered employer, there are important exceptions. You CAN pursue a personal injury lawsuit if a third party (not your employer or co-worker) caused your injury. Common examples include: Motor vehicle accidents during work (you can sue the at-fault driver), Defective equipment or machinery (you can sue the manufacturer), Injuries on another company's premises, and Negligent contractors or subcontractors.
These "third-party claims" allow you to receive both WSIB benefits AND pursue a lawsuit for additional compensation. However, WSIB has a right to recover some of what they've paid you from any lawsuit settlement.
A skilled personal injury lawyer can structure your claim to maximize your total recovery while satisfying WSIB's subrogation rights.
Comparing WSIB Benefits vs. Lawsuit Compensation
WSIB provides immediate, guaranteed benefits but with significant limitations. Loss of earnings is capped at 85% of net average earnings and only up to a maximum amount (approximately $100,000 gross). Non-economic loss awards for permanent impairment are based on a formula and are typically modest.
A personal injury lawsuit, by contrast, can compensate you for: 100% of lost income (past and future), Full medical expenses beyond what OHIP and WSIB cover, Pain and suffering (though subject to Ontario's deductible), Loss of enjoyment of life, and in some cases, punitive damages.
For serious injuries, a lawsuit may provide 2-5 times more compensation than WSIB alone.
What If Your Employer Isn't Covered by WSIB?
Not all employers in Ontario are covered by WSIB. Some industries have exemptions, and some employers illegally fail to register. If your employer isn't WSIB-covered, you may have the right to sue them directly for your workplace injuries.
Industries with optional WSIB coverage include: banks, insurance companies, some professional services, and private healthcare. Independent contractors typically aren't covered either.
If you're injured while working for a non-WSIB employer, a personal injury lawsuit may be your only option for compensation—but it also means potentially higher recovery without the WSIB benefit caps.
Steps to Take After a Workplace Injury
Report the injury to your employer immediately (this is required by law). Seek medical attention and be specific about how the injury occurred at work. File a WSIB claim within 6 months of the injury (though reporting sooner is better).
Document everything: accident circumstances, witness names, photos of the scene, and all medical treatment. Keep records of all expenses related to your injury.
Consult with a personal injury lawyer to evaluate whether a third-party claim is possible. Even if you're receiving WSIB benefits, you may have additional legal options that could significantly increase your compensation.
Conclusion
Workplace injuries in Ontario involve a complex interplay between WSIB benefits and potential legal claims. While WSIB provides important protections, it doesn't always fully compensate you for your injuries—especially in serious cases. If a third party contributed to your workplace injury, or if your employer isn't covered by WSIB, you may have the right to pursue a lawsuit for additional compensation. At Kanevsky Law Office, we help injured workers throughout Toronto and the GTA understand their rights and maximize their recovery. Contact us for a free consultation to discuss your workplace injury case.
