Worker's compensation insurance program

Worker's compensation is a legislated provincial/territorial insurance program that provides benefits to workers who must be absent from work due to work-related injuries or illnesses. Most provincial and territorial worker's compensation legislation is based on five principles formulated in 1913 by William Meredith, the Chief Justice of Ontario:

1. Collective liability- employers in specified industries are jointly responsible for the payment of compensation to injured workers;
2. No fault compensation system- workers receive compensation regardless of who was at fault;
3. Security of payments- workers are paid based on loss of earnings, regardless of the employer's financial situation;
4. Independent- worker's compensation board is non-political and financially independent of government or any special interest group;
5. Exclusive jurisdiction - the compensation board is decision maker and final authority for all worker's compensation claims. 

Most private-sector employers are considered regular employers and pay premiums into the general accident fund. However there is a self-insured employers group (typically railways, crown corporations, school boards, telephone companies) that do not contribute to general accident fund and are individually liable for the cost of accidents that occur in their workplace.
Most employees are covered by the provisions of worker's compensation legislation, except sole proprietors, independent contractors, executive officers (president, vice-president, corporate secretary, treasurer, etc.), partners of the organization and their spouses (if they don't receive regular wages).  Each provincial/territorial jurisdiction has a certain number of excluded professions that are deemed to be exempt from WC coverage. If an employer has no WC coverage whatsoever, the employee can sue the employer in the event of a work-related accident.
To encourage employers take proactive measures in creating safe workplaces, WCB initiated experience rating programs. The general goals of experience rating programs are:

• employer's premium is calculated based on historical record of their claim costs, aiming at fair distribution of premiums between employers;
• encourage employers to provide safer working environments by linking their assessment costs directly to the number of claims against their account.

To register for experience rating program, employer must meet the minimum criteria: employer must contribute to WC fund for three consecutive years and his annual premium must be at least a minimum amount set annually (varies by jurisdiction).