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Compensation insurance protects you from lawsuits by injured workers. This is because workers, in return for fair compensation for lost wages and associated costs related to an injury, have no legal right to sue, provided that the employer and their workers are within the compensation system.
The Workers’ Compensation Act requires all employers with three or more workers to register for compensation insurance coverage.
A clearance certificate is a WorkSafeNB document that states in writing that the business in question does not have overdue premiums owed to WorkSafeNB. All Boards and Commissions that provide workers’ compensation insurance across Canada use clearance certificates or clearance letters to indicate that an employer’s account is in good standing.
It is important to note that an up-to-date clearance certificate should be requested before making any settlement with a broker or contractor. The principal is liable for (i) any unpaid assessment of a registered broker or contractor; and (ii) any assessment related to work carried out by an unregistered broker or contractor.
Should you have any questions with regards to an employer status with WorkSafeNB, please contact Assessment Services at 1 800 222-9775 (option 4).