Workers' Compensation is a wage loss replacement benefit for expenses arising out of an accident or illness that occurs while working for an employer. In other words, job-related injuries and illnesses.
Bermuda has legislated benefits under the Workers’ Compensation Act (1965) together with subsequent amendments that hold employers liable to compensate their employees for loss of income and medical expenses. However, for most industries, insurance is not mandatory and the employer can choose either to self-insure against such expenses or purchase a workers’ compensation policy from an insurer.
All employees, aged 16 or above, of the Employer as defined by the Employment Act of 2000 and subsequent amendments, who are Bermuda residents and work for the Employer in connection with the Employer’s Business.
Eligible classes of employees can include:
Part-time employees working less than 15 hours per week for the Employer,
Temporary employees working less than three months per year for the Employer,
Students working for the Employer on weekends, public holidays and /or vacation periods.
Please note eligible classes of employees can vary from plan to plan.
There are six components included in our Workers' Compensation Plan in accordance with the Workers’ Compensation Act 1965. Benefits are payable in the event of death, disability or injury resulting from a workplace accident as follows:
(1) death benefit equal to the deceased employee’s earnings in the past 3 years*
(2) permanent total incapacity benefit equal to the disabled employee’s earnings in the past 4 years*,
(3) permanent partial incapacity benefit equal to a percentage of the amount payable for permanent total incapacity
(4) wage loss replacement for an injured employee who is unable to work in the amount of 2/3 of weekly earnings (or a higher percentage of salary if selected by the employer)
(5) medical expenses in accordance with legislated fees and benefits and
(6) employers’ liability at law is covered .
*or 3 or 4 years, as applicable, of the average annual per capita income as recorded by the Bermuda Government
No. To qualify for Workers’ Compensation benefits an employee must be disabled due to a work-related accident or occupational disease as defined in the Workers' Compensation legislation and unable to work.