All private sector businesses are required to provide the WSIB with security to cover the estimate of future costs.
If the WSIB determines that a Schedule 2 organization is required to post security for current or future payment obligations, you must do so using a letter of credit and/or a surety bond.
You can view our Schedule 2 Security Requirement policy for more information.
Letter of credit
The standard form of security is a letter of credit issued or guaranteed by a bank listed in Schedule 1 or Schedule 2 of the federal Bank Act. Letters of credit must conform to the WSIB's form for letters of credit (PDF).
Acceptance of a surety bond as security for payment is determined by the WSIB. In cases where the WSIB permits a Schedule 2 employer to provide a surety bond to meet its security requirements, the surety bond must conform to the WSIB's surety bond form (PDF).