Impact of Rising Workplace Injuries in Canada on Insurance

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Last updated on April 09, 2026

3 minute read

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Workplace Injury Trends and Insurance Impact at a Glance

  • Workplace injuries have an economic impact in the billions of dollars a year in Canada, and far-reaching consequences for employees and businesses alike.
  • In 2023, there were 1,056 workplace fatalities, highlighting elevated risk levels across the country
  • High-risk sectors such as transportation, air transport, and postal services continue to report much higher rates of injuries.
  • Industries such as healthcare, manufacturing, and construction make up a large portion of injury claims across the country.
  • The main change is in volume compared to rate. Even if safety gets better, working more hours can still result in a higher total number of injuries.
  • Ultimately, for businesses, being more at risk of workplace safety concerns can lead to higher premiums for workers’ compensation as well as pricier commercial insurance coverage.
Workplace Injuries Are Rising, What This Means For Insurance

Key Injury Statistics in Canada

Over the longer term, there are some signs that the rate of workplace injuries appears to be declining across Canada.

Indeed, every province and territory reported lower injury rates in 2023 compared to the average rate from the three previous years, with Alberta, Quebec and Newfoundland and Labrador showing the greatest decreases, as a 2025 Report on Work Fatality and Injury Rates in Canada shows.

Federally regulated employers have also experienced an improvement in safety performance compared to 2019, with nearly a 10% decline in disabling injuries overall since the pre-pandemic era.

But while trends look to be improving over a longer period, the immediate year-over-year data shows a reversal in some areas.

For federally regulated industries, the number of work-related injuries and hours worked climbed in 2023, with 41,668 reported over 2.4 billion hours worked, compared to 39,465 in 2022.

This includes 18,796 disabling injuries — up 665 from 2022 — and 22,801 minor injuries.

Across the country, workers’ compensation boards reported 1,056 workplace fatalities in 2023, one of the highest numbers recorded in recent years.

The “Volume vs. Rate” Paradox — What is Behind the Recent Increase?

As Employment and Social Development Canada notes in its 2023 report on Occupational injuries in the federal jurisdiction, the most recent data available, there is a positive correlation between an increase in hours worked and a greater number of injuries in certain sectors. But that isn’t the whole story.

This relationship is complex and varies by industry, they say — ultimately, the number of workplace injuries can also be impacted by other factors like safety practices, job complexity, fatigue, stress, training and skill level.

“Organizations with strong safety cultures and rigorous adherence to workplace health regulations often report fewer workplace injuries, regardless of the number of hours worked,” says the report.

Noting an increase in injury frequency and severity at two to three times last year’s rate, one recent U.S. report found that factors such as increased demand, workforce issues, time shortages and insufficient training are the leading contributors to incidents.

Industry-Specific Risk in Canada

When it comes to workplace injury, certain industries carry more risk than others.

The federal government measures risks and safety performance via the Disabling Injury Frequency Rate (DIFR) — the number of disabling injuries per 1 million hours worked.

Federally, the DIFR was 7.77 in 2023 — lower than 2019’s rate of 9.39.

Still, four industries recorded average DIFR values that were higher than the federal rate (although there can be significant variation depending on province or territory). These were:

  • Air Transportation (21.38)
  • Road Transportation (19.24)
  • Postal Services and Postal Contractors (16.43)
  • Longshoring, Stevedoring, Port, Harbour Operations and Pilotage (9.75)

This, notes the government, represents the first time that the Air Transportation industry has had the highest DIFR federally since 2008.

At the same time, while postal services and contractors remained above the national average, their DIFR has decreased significantly since 2019, which, says the government, suggests workplace safety is improving.

Industries (federal jurisdiction) reporting the largest shares of total disabling injuries in 2023:

Number of disabling injuriesPercentage of total
Road Transportation6,81336.2%
Air Transportation4,41323.5%
Federal Public Services, Public
Service Departments and Crown
Corporations
3,21817.1%
Postal Services and Postal
Contractors
1,5148.1%
Communications1,0415.5%
Source: Employment and Social Development Canada

Outside of federally regulated sectors, the health care and social assistance industry was responsible for more than a quarter of all lost time claims reported in 2023, according to the Association of Workers’ Compensation Boards of Canada (AWCBC). These were mainly listed as “traumatic injuries to muscles, tendons, ligaments, joints, etc.”

The manufacturing and construction industries also each reported more than 10% of total claims. Indeed, in the last five years, says WorkSafe BC, the serious injury rate in manufacturing has been 44% higher than the average across all industries in the province.

What Does This Mean for Employers and Insurers?

Most employers are required to pay premiums to provincial workers’ compensation insurance plans, such as WSIB in Ontario. Individual premium rates hinge on a number of factors, such as your industry, with certain sectors dealing with higher premium rates as a result of more injury claims. They also assign you a ‘risk band’ that represents your individual risk — using insurable earnings, claims costs and the number of allowed claims over a six-year period. 

For employers’ liability insurance, broader commercial general liability policies or group disability coverage, insurers consider a number of metrics like risk ratios, claims history and safety practices. When a sector or occupation is considered higher risk for injury or an employer is reporting injuries at a rate that is significantly higher than their share of the workforce, this may justify higher premiums.

Key Advice from MyChoice

  • Put prevention first, not just compliance. Good safety programs, regular training, and careful oversight can lower claims over time and help manage insurance expenses.
  • Keep an eye on risk factors in your operations. Issues like fatigue, staff shortages, and heavier workloads are becoming common causes of workplace incidents.
  • Compare your industry’s risk level to others. Some sectors naturally have higher injury risks, and insurers take this into account when setting premiums.
  • Be proactive about managing risks. Insurers look at your safety practices and risk controls, not just your past claims, when deciding on coverage costs.

With over 20 years of experience in business, finance, and insurance writing, Helen specializes in translating complex industry topics into clear, reader-friendly content that helps consumers better understand financial decisions.

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