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Real estate licensees who form corporations are required to register with WorkSafeBC
Richmond, B.C., October 31, 2008 — Amendments to the Real Estate Services Regulation which will allow individual real estate licencees to form personal real estate corporations as of January 1, 2009, means some licensees will be required to register with WorkSafeBC.
Under the Workers Compensation Act, incorporated companies are required to register with WorkSafeBC to cover workers and any principal active in the company’s operations.
As is the case with other insurance companies, workers’ compensation is based on the principle of collective liability. So that no employer has to bear the full cost of a claim alone, employers pay premiums which are then pooled to cover the cost of workers’ claims. In the case of a severe injury, which could cost $1 million or more, collective liability coverage is a highly valuable benefit.
A company’s premium is based on its payroll, the inherent risk of injury in the company’s industry, and the historical injury costs within the insurance pool. Premium rates for employers in B.C. are among the lowest in Canada. For 2009, the average premium rate is estimated at $1.56 per $100 of assessable ― the lowest rate in 30 years. For real estate agencies, the base rate will be $0.19 per $100 of assessable payroll, one of the lowest rates of any industry.
Through WorkSafeBC’s experience rating program, employers whose relative claim costs are consistently lower than those of their peers receive discounts on their premium, which can reach 50 percent over a period of time. Employers whose costs are consistently higher pay a surcharge, which can reach 100 percent over a period of time.
Licensees who are incorporating their agencies should register with WorkSafeBC before they hire workers, or before principals become active in the agency, even if the licensee is currently covered under WorkSafeBC’s Personal Optional Protection plan. The quickest way to register and to find information about registration is online at WorkSafeBC.com. Select Register for coverage under the Insurance tab.
Serving about 2.2 million workers and more than 197,000 employers, WorkSafeBC is a provincial statutory agency governed by a Board of Directors and funded by employers. WorkSafeBC was born out of a compromise between B.C.’s workers and employers in 1917 where workers gave up the right to sue their employers or fellow workers for injuries on the job in return for a no-fault insurance program fully paid for by employers. WorkSafeBC is committed to a safe and healthy workplace and to providing return-to-work rehabilitation and legislated compensation benefits to workers injured as a result of their employment.