2020 Analysis of Workers' Compensation Laws - 14

Chart I-Type of Law and Insurance Requirements, cont.
SelfInsurance

Jurisdiction

Type of Law

Insurance

Ontario

Compulsory

Required in
provincial
fund

Permitted

Prince
Edward
Island

Compulsory

Required in
provincial
fund

Permitted for
federal and
other specified
entities

Penalty for late registration is a maximum of $500 for each assessment year (applied as a percentage of
total payroll).

Québec

Compulsory

Required in
provincial
fund

Not
permitted19

Employer who fails to register with the Commission within 60 days must pay penalties for late periodic
payment. Also, for those who have passed the due date to report the statement of wages, penalties and
interest for late reporting are charged.

Saskatchewan

Compulsory

Required in
provincial
fund

Permitted
for federal
government

Failure to submit statements of wages when starting operations or when required by the Act or
regulations: (a) If registration is greater than 30 calendar days from the date of employing a worker, the
Workers' Compensation Board (WCB) will apply a penalty of 5% of the premium assessed for each year
the employer should have been registered (with a minimum of $5 and a maximum of $500 for each year of
noncompliance). The WCB may also pursue a fine up to $1,000. Where an employer intentionally avoided
registration or where a work-related injury has occurred, the employer will be liable to pay the premiums
due for all years it should have been registered, and the WCB may require the employer to pay for the total
cost of all injuries that occurred prior to registration. If the penalties and fines do not deter the employer
from failing to register, the WCB may levy an administrative penalty up to $10,000; (b) If an employer
fails to submit a payroll statement by 2/28 in each year, the WCB will estimate the employer's payroll to
calculate the assessment and require the employer to pay a penalty based on 5% of the assessment for
the prior year. The penalty will increase 5% per month and shall not exceed a total of 15% or $500. If an
employer fails to provide payroll statements for three consecutive years, the WCB may fine the employer
up to $1,000. If the penalty and fine do not deter the employer, the WCB may impose an administrative
penalty up to $10,000.

Yukon
Territory

Compulsory

Required in
territorial
fund

Not permitted

On prosecution for noncompliance with Workers' Compensation Act, the minimum fine is $50, maximum
fine is $5,000 (10% of premiums plus interest). Penalty for late registration is 10% of the assessment owed
plus interest.

Penalties on Failure to Insure
Failure to register upon employment of workers or supply information as required is an offense, and if
convicted, employer could be subjected to fine and/or imprisonment.

Notes
1.
Arkansas-Municipalities with populations of more
than 70,000 may self-insure on individual or group basis.
2.
Florida-Application for workers' compensation
coverage under a group self-insurance fund must contain
the following statement: "This is a fully assessable policy.
If the fund is unable to pay its obligations, policyholders
must contribute on a pro rata earned premium basis the
money necessary to meet any unfulfilled obligations."
3.
Indiana-Except as to state and political subdivisions,
banks, trust companies, and savings and loan
associations. These entities are self-insured by statute.

Maryland-Eligibility for group self-insurance is
limited to counties, municipalities, boards of education,
community colleges, and certain private employers.
4.

Mississippi-All self-insurers must be members of
the Mississippi Workers' Compensation Self-Insurer
Guaranty Association.
5.

Montana-Private employers and public entities,
other than state agencies, may establish individual or
group self-insurance funds.
6.

Nebraska-Group self-insurance permitted for any
two or more public agencies.
7.

8.
New Jersey-Statutory presumption of compulsory
inclusion in every contract of hire since 7/4/1911.
Coverage may be terminated by either party upon notice

in writing prior to any accident. Permits 10 or more
employers licensed by the state as hospitals to group
self-insure.
New Mexico-"Group" means a nonprofit
unincorporated association consisting of two or more
public hospital employers or private employers who
are engaged in the same or similar type of business as
defined by the New Mexico Workers' Compensation
Administration Group Self-Insurance Act (NMSA 1978
§52-6-2B).
9.

10.
New York-President, secretary, and treasurer
of a corporation are criminally and/or civilly liable for
failure to obtain coverage and are personally liable for
penalties.

director. Group self-insurance is permitted for school
districts and hospitals.
15.
Wyoming-Coverage is compulsory for extrahazardous industries and occupations only. Private
insurers are allowed to write coverage for industries and
occupations not considered extra-hazardous; however,
only state fund is allowed to provide immunity to lawsuit
by injured workers.
16.
Manitoba-Employers or industries included in
Classes A, B, C, or D are permitted to self-insure. Selfinsurers include individual employers or employers
in industries such as railways, provincial and federal
governments, airlines, and the largest municipality.

11.

17.
New Brunswick-Subject to approval of lieutenant
governor-in-council, board may make arrangements for
insurance or reinsurance.

12.

18.
Ontario-Employers who are defined as Schedule
2 employers under the Ontario Workplace Safety and
Insurance Act (employers who are in one of the classes
of industries listed in Schedule 2 to Ontario Regulation
175/98) are self-insured.

North Carolina-All individual and group self-insurers
must be members of the North Carolina Self-Insurance
Guaranty Association as a condition of authority to selfinsure.
Texas-Mandatory for political subdivisions.

Texas-Except for state and political subdivisions.
Self-insurance is permitted upon the Texas
Department of Insurance and the Division of Workers'
Compensation's approval.
13.

14.
Washington-Self-insurance permitted for employers
who make application, qualify, and are certified by the

14 | 2020 Analysis of Workers' Compensation Laws

19.
Québec-Permitted only for employer operating
an interprovincial or international railway transport or
shipping firm under the special provisions for employers
held personally responsible for the payment of benefits.

2020 Analysis of Workers' Compensation Laws

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