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WSIB vs. LTD: The Key Differences
When you’re facing time off work due to illness or injury in Ontario, understanding whether to apply for WSIB benefits or long term disability (LTD) benefits is crucial.
WSIB benefits cover workplace injuries or illnesses, while LTD benefits, whether through an employer-sponsored plan or private disability insurance, support you when a condition prevents you from working for a prolonged period, regardless of whether it’s work-related.
Here’s what Canadians need to know to make the right choice.
What Is the Key Difference Between WSIB & LTD?
The key difference is cause: WSIB benefits are only for work related injuries and occupational illnesses, while LTD benefits cover any disabling condition, whether it arises from a workplace injury, accident elsewhere, or serious illness.
WSIB is administered by a government insurance board, funded by employers, while LTD benefits are paid by private insurance companies through insurance policies or benefit plans.
Cause of Disability
WSIB benefits: Only available for workers compensation claims related to a specific workplace injury or job-caused illness.
LTD benefits: Available for any condition—mental or physical—that meets the policy definition of disability, regardless of whether it’s tied to your job.
What Is WSIB?
The Workplace Safety and Insurance Board (WSIB) is Ontario’s workers’ compensation system. WSIB benefits support injured workers and those with workplace illnesses by replacing lost wages, paying medical expenses, and helping with rehabilitation. Most Ontario employers must register with WSIB, so workers who experience a workplace injury or work-related illness can make a workers compensation claim and access vital workplace safety protections and medical benefits.
What Is Long Term Disability (LTD)?
Long term disability (LTD) coverage is offered through many employer benefit plans or can be purchased privately as individual disability insurance.
Long term disability benefits replace a portion of your income if any illness or injury, whether from work, home, or elsewhere, prevents you from working for an extended period (often after short term disability benefits or sick leave ends). LTD is not tied to workers compensation or the insurance board; it is a separate form of disability coverage.
Source of Funds
WSIB benefits: Funded by employer premiums paid to the Workplace Safety and Insurance Board.
LTD benefits: Funded by insurers via long term disability insurance policies included in employer plans or purchased privately. The insurance company pays benefits—not the employer directly.
Can You Collect Both Long Term Disability and WSIB Benefits?
You cannot collect full WSIB benefits and full LTD benefits at the same time. Most long term disability insurance policies have an “offset” clause, meaning any money received from a WSIB claim is subtracted from what the insurer pays in LTD benefits.
LTD benefits may “top up” the difference if your disability payments from WSIB are less than your long term disability plan coverage, but total combined payments cannot exceed policy limits.
Sometimes, your LTD insurer will also require you to apply for WSIB if your condition might be work-related, and may require you to notify them if WSIB denies your claim.
WSIB vs. LTD: How Long Can You Receive Benefits?
WSIB benefits: Paid as long as the injured worker cannot return to their job due to a work related injury or illness. Wage-loss benefits usually end at age 65, but medical benefits may continue for life in some situations.
LTD benefits: Typically paid until age 65, until you return to work, or until another policy limit is reached. LTD benefits often have a “change of definition” shift in criteria around the 2-year mark, which often involves transitioning from the "own occupation" definition to the "any occupation" definition, requiring proof you cannot work any job, not just your previous role.
How Do Insurers Calculate the Benefits You Receive?
WSIB benefits: Normally you can receive 85% of your pre-injury earnings, up to an annual maximum. WSIB also covers approved medical expenses, rehabilitation, and sometimes even retraining.
LTD benefits: Your group benefits are usually 60-85% of your pre-tax monthly income, depending on your insurance policy. Some plans also coordinate with other disability programs, reducing payments if you receive CPP Disability, WSIB, or other sources. Private policy claims are often a flat monthly amount or a larger percentage of your original earnings.
Summary Table: WSIB vs. LTD at a Glance
Feature | WSIB Benefits | LTD Benefits |
Cause of Disability | Only workplace injury/illness | Any illness or injury (work or non-work) |
Source of Funds | Employer-funded, insurance board | Private insurance, employer or individual |
Medical Coverage | Yes, covers workplace medical expenses | Covers some medical expenses if policy allows |
Eligibility | Must be work related | Must meet policy definition; any cause |
Duration | Generally until age 65 (some longer) | Usually to age 65 or policy limit |
Income Replacement | 85% of net earnings | 60–85% of gross income (depending on your specific policy’s terms) |
Can Collect Both? | No. WSIB reduces LTD payments | LTD usually offsets for WSIB amounts |
Melanie’s Story: Understanding WSIB & LTD in Canmore
Melanie, a ski resort worker in Barrie, severely injured her back while lifting equipment—a classic workplace injury. At first, Melanie was unsure: should she apply for WSIB benefits, long term disability benefits, or both? After consulting her employer and speaking with a disability lawyer, she learned that WSIB benefits would cover her immediate losses as an injured worker, including wage replacement and medical benefits. Because her disability was tied to a work-related injury, she needed to report her claim to the insurance board promptly. When her recovery took longer than expected, Melanie also explored her employer’s long term disability plan. With her LTD benefits, Melanie was able to maintain her income when the WSIB benefits didn’t fully cover her lost earnings. By coordinating both applications and understanding the differences, Melanie achieved the best possible support.
Checklist: Deciding Between WSIB & LTD Benefits
Not sure which type of benefits are most applicable to your claim? Here’s a few questions to help you decide.
Was the injury or illness caused by a workplace accident or work duties?
Is your employer covered by the Workplace Safety and Insurance Board?
Does your employer provide long term disability coverage?
Have you reviewed your insurance policies for offset or coordination clauses?
Have you gathered medical evidence for both workers compensation and disability benefits claims?
You may want to contact a disability lawyer to clarify your options.
Contact Our Disability Lawyers at Share Lawyers
If you’re in doubt about whether to claim WSIB benefits, LTD benefits, or both, consult with a disability lawyer at Share Lawyers. Our team helps injured workers understand all available disability benefits, apply for disability coverage under employer or private plans, avoid wrongful denials, and maximize both WSIB and LTD benefits.
Summary
Choosing between WSIB benefits and long term disability benefits depends on the cause of your condition, your employer’s coverage, and the details of your insurance policies.
Always report a workplace injury for workers compensation claims, but don’t overlook your LTD benefits if you’re unable to work for a prolonged period.
Contact Share Lawyers today and let our experience work for you. Our 35+ years of experience can help you win your case against Canada Life, Desjardins, Manulife, RBC Insurance, Sun Life, and other insurance companies. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.
