WSIB is mandatory for Ontario construction businesses, covering work-related injuries—but is it enough? This guide breaks down the key differences between WSIB and group benefits disability coverage (STD & LTD), explores whether your team needs both, and explains how to protect your business and employees the right way.

Table of Contents

• Understanding WSIB: What It Covers (and What It Doesn’t)
• The Role of STD & LTD in Group Benefits
• Key Differences Between WSIB and Disability Insurance
• Do You Need Both? Five Scenarios to Consider
• Making the Right Choice for Your Business

Understanding WSIB: What It Covers (and What It Doesn’t)

If you run a construction business in Ontario, you’re legally required to have WSIB coverage for your workers. The Workplace Safety and Insurance Board (WSIB) provides financial protection in case of work-related injuries or illnesses.

What WSIB Covers:

✅ Medical Costs – Covers hospital stays, surgeries, prescriptions, and rehab for work-related injuries.
✅ Loss of Earnings Benefits – Replaces up to 85% of a worker’s net income while they recover.
✅ Return-to-Work Programs – Helps employees transition back to work safely.
✅ Survivor Benefits – Provides financial support to families if a worker dies from a workplace accident.

What WSIB Doesn’t Cover:

❌ Non-Work-Related Illnesses or Injuries – If an employee gets sick or injured outside of work, WSIB won’t help.
❌ Partial Disabilities – If an employee can work but needs reduced hours or light duties, WSIB benefits may be limited.
❌ Long-Term Disabilities Beyond WSIB’s Coverage – WSIB doesn’t cover all types of chronic or progressive illnesses.

➡️ Key Fact: In Ontario, one in three long-term disability claims are due to illnesses, not workplace injuries. (Sun Life)

The Role of STD & LTD in Group Benefits

This is where Short-Term Disability (STD) and Long-Term Disability (LTD) insurance come in.

Unlike WSIB, which only covers work-related incidents, STD & LTD cover injuries and illnesses no matter where or how they happen—at work, at home, or even on vacation.

Short-Term Disability (STD):

• Provides income replacement for illnesses or injuries that temporarily prevent an employee from working.
• Typically covers the first 17-26 weeks (depending on your plan).
• Replaces 50-70% of an employee’s salary, depending on the policy.

Long-Term Disability (LTD):

• Covers disabilities lasting longer than STD benefits, often until retirement age.
• Replaces 50-75% of an employee’s salary while they’re unable to work.
• Often required for mortgage or loan approvals, giving employees financial security.

➡️ Key Fact: 90% of disabilities in Canada are caused by illness, not accidents. (Manulife)

Key Differences Between WSIB and Disability Insurance

➡️ Key Fact: A study by Sun Life found that 60% of Canadian workers don’t have emergency savings, making disability coverage critical for financial stability.

Do You Need Both? Five Scenarios to Consider

Having WSIB alone isn’t always enough—here are five real-life scenarios where having STD & LTD alongside WSIB would make a major difference.

Scenario 1: The Off-Duty Injury

🚧 A worker falls off a ladder at home on a Sunday. They can’t work for 8 weeks.

🔹 With WSIB: No coverage—injury happened outside of work.
🔹 With STD: They get income replacement for the full recovery period.

Scenario 2: The Chronic Illness

🚧 A site supervisor is diagnosed with cancer and needs months of treatment.

🔹 With WSIB: No coverage—cancer is not work-related.
🔹 With LTD: They receive monthly income replacement throughout treatment.

Scenario 3: The Workplace Injury That Takes Longer to Recover

🚧 A worker suffers a serious back injury on-site and can’t return to full duties for a year.

🔹 With WSIB: They receive benefits—but if they can’t return to their old job, benefits may be cut off.
🔹 With LTD: They’re protected even after WSIB ends.

Scenario 4: Mental Health Leave

🚧 A lead carpenter struggles with severe anxiety and needs time off.

🔹 With WSIB: Only covered if the anxiety is caused by a workplace event (difficult to prove).
🔹 With STD/LTD: Mental health conditions are covered under group benefits.

Scenario 5: Partial Disability

🚧 A construction worker can only work half-days due to chronic pain.

🔹 With WSIB: Limited benefits may apply.
🔹 With LTD: They may receive top-up income while working reduced hours.

➡️ Key Fact: 35% of Canadians will face a disability lasting longer than 90 days before age 65. (Canada Life)

Making the Right Choice for Your Business

For construction companies in Ontario, WSIB is mandatory—but it’s not enough on its own. Pairing WSIB with STD & LTD insurance gives your employees full protection in every scenario.

Why Offer Group Disability Coverage?

✔ Protects workers financially whether they’re injured on the job or not.
✔ Reduces employee stress about finances during recovery.
✔ Enhances your benefits package, making your company more attractive to skilled workers.
✔ Covers mental health and chronic illnesses, which WSIB often doesn’t.
✔ Helps employees return to work faster with proper rehab and financial stability.

Final Takeaway:

WSIB covers workplace injuries—but it won’t protect employees outside of work. If you want to offer true financial security, adding STD & LTD to your group benefits plan is the best way to go.

➡️ Not sure if your benefits plan stacks up? Let’s chat—I’d be happy to take a look!