The WSIB premium rates for 2027 bring Ontario’s average rate down to $1.18 per $100 of insurable earnings, from $1.23 in 2026, starting January 1, 2027. The WSIB says the cut leaves $160 million in Ontario’s economy. Your own rate may differ, so check the 2027 rate statement the WSIB is posting online from November. WSIB covers your workers’ workplace injuries. It does not cover injuries to customers, damage to property, or most lawsuits, which is where private business insurance comes in.
For many owners, WSIB is the biggest insurance-type cost they pay. That makes it easy to assume it is the main insurance the business needs. This guide explains what changes in 2027, how your premium is worked out, who has to register, and the gaps WSIB was never designed to fill. If you’re new to the system, start with our explainer, Understanding WSIB: What It Is and How It Works in Ontario.
What are the WSIB premium rates for 2027?
The Workplace Safety and Insurance Board (WSIB) published its 2027 premium rates on October 22, 2026. The key figures:
| Measure | 2026 | 2027 |
|---|---|---|
| Average premium rate (per $100 of insurable earnings) | $1.23 | $1.18 |
| Maximum insurable earnings per worker | $121,700 | $126,700 |
That is a drop of about 4% in the average rate. For context, the WSIB notes the average rate was $2.35 in 2018, and says Ontario’s 2027 average will be almost 30% below the national average. In announcing the change, the province said more than 80% of businesses will get a rate cut, as reported by HR Reporter.
Rates still vary widely by industry. The WSIB’s published 2027 class rates range from $0.15 to $3.43 per $100 of insurable earnings, depending on the type of work.
How do the 2027 WSIB premium rates affect my business?
The average is a headline, not your bill. Three things decide what you will actually pay:
- Your class. Each class rate reflects the shared risk of businesses doing similar work.
- Your own experience. Your individual rate reflects your claims history compared with others in your class. The WSIB set 2027 rates using claims and insurable earnings data as of April 30, 2026.
- The risk-band limit. Rates move up or down by at most three risk bands a year (roughly 15%) until they reach your “projected rate.” This limit does not apply to non-profit organizations.
New businesses are assigned the class rate for their business activity.
Your 2027 rate statement shows your classification, your actual 2027 rate and your projected rate. The projected rate shows the direction your rate is heading if your experience stays the same. The WSIB says 2027 statements will be available only online, starting in November. If you don’t have a WSIB online services account yet, set one up now.
How is my WSIB premium calculated?
In simple terms, your premium is your rate multiplied by each $100 of insurable earnings. Insurable earnings for each worker are capped at the annual maximum ($126,700 in 2027).
Illustration only: a business with $400,000 of insurable payroll and a rate of $1.23 pays $4,920 a year. At $1.18, the same payroll costs $4,720, a saving of $200. Your real figures depend on your class, your rate statement and your payroll.
Two practical notes:
- A lower rate does not lower your premium if payroll grows faster. Budget on your rate statement and your 2027 payroll forecast.
- The WSIB runs a Health and Safety Excellence program that offers rebates to eligible businesses that improve workplace safety.
Do I need WSIB coverage in Ontario?
According to the WSIB’s registration guidance, most Ontario businesses with employees must register. That includes construction, restaurants and bars, sales and service, agriculture, manufacturing, and trucking or transportation. It also includes homeowners who hire domestic workers such as nannies. You have 10 calendar days from the day you hire your first employee to register.
Some businesses are not required to register but can choose coverage. Examples include banks, trust and insurance companies, private day cares, travel agencies, photography businesses, and barber shops and many hair salons.
Owners are a common blind spot. Outside construction, sole proprietors, partners and executive officers are not automatically covered, even when their employees are. They can apply for optional WSIB insurance for themselves once their employees are covered. Construction is different: independent operators, sole proprietors and some partners and executive officers in construction must have WSIB coverage.
What do Ontario contractors need to know about WSIB clearance certificates?
If you hire a contractor or subcontractor for construction work, the WSIB requires you to get a clearance certificate from them before work starts. The clearance must stay valid for the whole job. The WSIB clearance rules set out the details:
- A clearance is valid for up to 90 days, and most expire on February 20, May 20, August 20 or November 20. Longer jobs need a renewed clearance.
- Starting construction work without a valid clearance is an offence for both the hiring business and the contractor. The maximum fine under the Workplace Safety and Insurance Act is $100,000.
- Keep clearance records for at least three years (WSIB policy 14-02-19).
- A valid clearance protects you from being held liable by the WSIB for that contractor’s unpaid premiums during its validity period.
- Homeowners who hire a contractor directly for renovation work on the home they live in are exempt.
With most clearances expiring on November 20, now is a good time to check the ones on file for any job that runs into winter. Clearances are free to request online.
What does WSIB not cover?
WSIB works as a trade-off. In exchange for benefits, workers of covered employers generally give up the right to sue those employers over a workplace injury. This is set out in sections 26 and 28 of the Workplace Safety and Insurance Act, as summarized in the WSIB’s policy on third-party rights of action. That protection is valuable, but it is narrow. It applies only to workplace injuries and occupational disease, and only to covered workers.
| Risk | Covered by WSIB? | Where cover usually comes from |
|---|---|---|
| Your worker hurt on the job | Yes, if you are a covered employer | WSIB |
| A customer or member of the public injured at your premises | No | Commercial general liability |
| Damage to someone else’s property caused by your work | No | Commercial general liability |
| Your building, equipment or stock | No | Commercial property |
| Vehicles used for business | No | Commercial auto insurance |
| Wrongful dismissal, harassment or discrimination claims | No | Employment practices liability |
| Owner’s own injury (non-construction, no optional cover) | No | Optional WSIB or disability insurance |
Two gaps deserve a closer look:
- Injured workers from other businesses. The WSIB’s policy says a worker may be able to sue a “third party” whose negligence caused the injury. A third party is someone other than the worker’s own employer who is not a Schedule 1 employer. If your business sits outside the WSIB system, a contractor’s employee hurt on your site may be able to sue you.
- Businesses that opted out. If your industry doesn’t require WSIB and you haven’t chosen coverage, the statutory bar on lawsuits doesn’t protect you in the same way. Many standard liability policies exclude injury to your own employees. Ask your broker whether you need employer’s liability coverage.
Slip-and-fall claims are a winter example of the first row. We cover the Occupiers’ Liability Act’s 60-day notice rule in our slip and fall liability guide. That post deals with customers and visitors. This one deals with your workers.
WSIB premium rates 2027 checklist: what to do before January 1
- Open or log in to WSIB online services so you can see your 2027 rate statement when it posts in November.
- Compare your actual and projected rates. If your projected rate is higher, safety work now can change the trend.
- Confirm your classification. Check that the business activity on your statement matches what you actually do.
- Update your payroll forecast using the $126,700 maximum insurable earnings per worker.
- Decide on owner coverage. If you’re not in construction, choose between optional WSIB and private disability insurance.
- Contractors: audit clearances ahead of the November 20 expiry date.
- Review your private policies with a broker. Payroll, headcount and new kinds of work all affect your liability and auto premiums too.
WSIB and private insurance do different jobs. Most Ontario businesses need both. If you’d like a second look at how your small and medium business insurance fits around WSIB, our brokers can review your current policies. For a broader overview of coverage types, see our guide to business insurance coverage and costs. If you run a trade business, our contractors insurance page explains the liability, auto and equipment cover that sits alongside your WSIB account.
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Frequently asked questions
What is the WSIB average premium rate for 2027?
The average WSIB premium rate for 2027 is $1.18 per $100 of insurable earnings, down from $1.23 in 2026. The new rate takes effect January 1, 2027. Individual businesses pay their own rate, which depends on their industry class and claims history.
When will I get my 2027 WSIB rate statement?
The WSIB says 2027 rate statements will be available only online, starting in November 2026. You need a WSIB online services account to see yours. The statement shows your classification, your 2027 rate and your projected rate.
Will my WSIB premium go down in 2027?
Not necessarily. The province said more than 80% of businesses will get a rate cut, but your rate depends on your class and your own claims experience. Rates move by at most three risk bands a year (about 15%), and a growing payroll can raise your total premium even if your rate falls.
What are the maximum insurable earnings for WSIB in 2027?
The 2027 maximum insurable earnings are $126,700 per worker, up from $121,700 in 2026. Premiums are not charged on a worker’s earnings above that ceiling.
How soon do I need to register with WSIB after hiring?
You have 10 calendar days from the day you hire your first employee to register with the WSIB, if your business is in a mandatory industry. Most Ontario businesses with employees must register, including construction, restaurants and bars, sales and service, manufacturing and transportation.
Are business owners covered by WSIB?
Outside construction, sole proprietors, partners and executive officers are not automatically covered. They can apply for optional WSIB coverage once their employees are covered. In construction, independent operators, sole proprietors and some partners and executive officers must have coverage.
What is a WSIB clearance certificate?
A clearance certificate shows that a business is registered with the WSIB and up to date on its premiums. In construction, the business hiring a contractor must get one before work starts and keep it valid for the whole job. Clearances last up to 90 days, and working without one can lead to fines of up to $100,000.
Does WSIB cover injuries to customers or the public?
No. WSIB covers your workers’ workplace injuries and occupational diseases only. Injuries to customers, visitors or the public, and damage to other people’s property, are usually covered by commercial general liability insurance.
If I have WSIB, do I still need business insurance?
In most cases, yes. WSIB doesn’t cover your building or equipment, business vehicles, third-party injury claims, or employment practices claims such as wrongful dismissal. A broker can match private policies to the gaps WSIB leaves.
Can an injured worker sue my business?
Workers of WSIB-covered employers generally cannot sue a covered employer over a workplace injury. A worker may, however, be able to sue a negligent third party that is not a Schedule 1 employer. A business outside the WSIB system should ask its broker about employer’s liability coverage and get legal advice on its exposure.
Sources
- WSIB: 2027 premium rates
- WSIB: How to register your business
- WSIB: Can I choose to have WSIB insurance?
- WSIB: Expanded compulsory coverage in the construction industry
- WSIB: Questions and answers, clearances
- WSIB policy 14-02-19: Clearance Certificate in Construction
- WSIB policy: Third Party Rights of Action
- HR Reporter: WSIB cuts average premium rate for 2027 (October 22, 2026)
Information current as of October 28, 2026.
This article is general information about WSIB premiums and business insurance in Ontario as of October 28, 2026. It is not legal, accounting or insurance advice. WSIB rates, rules and your individual premium are set by the WSIB, so confirm your obligations with the WSIB or a qualified professional. Insurance coverage depends on the wording of your policy. Speak with a licensed broker about your situation.
