Do barbershops need WSIB coverage in Ontario?

Short answer: generally no — as of October 2026, most Ontario barbershops and hair salons do not have to carry WSIB coverage, because Ontario's workers' compensation regulation, O. Reg. 175/98, lists "personal care services" as an excluded industry. The shop can still opt in; in 2026 a new barbershop pays $1.28 per $100 of payroll. Skipping it has a price: an injured barber with no WSIB coverage may be able to sue the shop. This post covers the regulation, the cost, chair renters, owners, other provinces, and the payroll records BarberFlow exports.

Is WSIB mandatory for barbershops in Ontario?

No. Section 2(3) of Ontario Regulation 175/98 says employers in the industries listed in Part II of Schedule 1 "are not included in Schedule 1 unless they apply and are deemed to be a Schedule 1 employer under section 74 of the Act." Part II, under Class P — Other Services, opens with item 1: "Personal care services." The regulation never names barbers or hairdressing; personal care services is the category, and e-Laws shows the regulation current to October 5, 2026 with no amendment since 2024.

The WSIB's Employer Classification Manual entry for 812114 Barber shops — "hair cutting and styling, and the trimming or shaving of beards and moustaches" — reads Class P Other services, coverage status "Non-mandatory." So do 812116 Unisex hair salons and 812115 Beauty salons.

WSIB policy 12-01-02, Employer by Application names "barbers and hair salons" among employers that can apply; the registration page lists "barber shops and many hair salons" as not having to register.

Why "many" hair salons, not all?

The WSIB does not explain the word on that page. Our reading is the mixed-activity rule in policy 12-01-04, Coverage Status: when an employer runs both a mandatory and a non-mandatory business activity, "any worker that is engaged in both" is covered. A beauty-supply store, for instance, is 446120, mandatory under Schedule 1. Pomade sold at your front counter is not a store: the same policy exempts an operation that "forms part of a non-mandatory business activity" and "is not organized as a business in its own right." If your shop runs a genuine second business, call the WSIB at 1-800-387-0750 before assuming you are exempt.

Does Ontario's proposed 2026 coverage expansion include barbers?

No. Bill 105, the Protecting Ontario's Workers and Economic Resilience Act, 2026, would add a section 74.1 to the Act deeming only "Residential care facilities operated by a private employer" and "Group homes" into Part I of Schedule 1, the change the province's April 20, 2026 media briefing described as subject to consultation. Neither mentions personal care services, barbers or salons. Bill 105 had not passed as of October 2026; the Legislature lists it as "Second Reading Ordered for Third Reading."

How much does WSIB cost a barbershop?

The WSIB's 2026 premium rates page sets the Class P Other services class rate at $1.28 per $100 of insurable earnings. A new business gets its class rate; after that, its rate moves at most three risk bands, about 15%, a year based on claims. Premiums stop once a worker's earnings pass the 2026 maximum of $121,700.

Under WSIB policy 14-02-08, Determining Insurable Earnings, insurable earnings are what appears on a worker's earnings statement and in box 14 of the T4, commission and vacation pay included. Tips are split: "gratuities (tips), verifiable by the employer" are insurable; tips "paid directly to the employee by the customer being served" are not.

The WSIB's by-application page lists no application fee and no minimum premium, and we found no WSIB page that sets one for a by-application shop. The one fixed figure is a $250 advance that most new registrants pay if they need a clearance certificate at registration, credited toward future premiums.

Why would a barbershop opt in anyway?

Because coverage keeps the shop out of court. Under section 28 of the Workplace Safety and Insurance Act, 1997, a worker of a Schedule 1 employer is "not entitled to commence an action" against any Schedule 1 employer over an injury, and section 27 limits that bar to injuries that entitle the worker to WSIB benefits. Section 74 lets the WSIB deem an applicant a Schedule 1 employer. The WSIB's by-application page calls it "no-fault workplace insurance that protects you from costly court settlements."

That page also spells out the alternative: when a business's coverage is cancelled, injured employees lose WSIB benefits, and "your employees may have the right to take legal action against you for damages." With no WSIB account, a barber off the floor for two months after a deep scissor cut has no WSIB benefits, and their remedy is a negligence suit against the shop.

• Same rules as everyone else. Policy 12-01-02 gives an accepted applicant "the same rights" and "the same obligations" as a mandatory employer.
• Coverage runs until it is cancelled. You cancel in writing, or the WSIB cancels for overdue premiums or a missing reconciliation form. Policy 12-01-02 says you must tell your workers, and the WSIB's by-application steps page sets a three-month minimum.

Does a chair renter need WSIB?

Usually not through your shop, and no WSIB page or policy names chair renters at all. Policy 12-02-01, Workers and Independent Operators applies a general test — control, ownership of tools, the chance of profit or risk of loss, and whether the person runs a separate business — plus "other applicable criteria." A renter who sets their own hours and prices and books their own clients points to independent operator. A "renter" on shifts and prices you set points to worker.

Either side can file the WSIB's worker or independent operator questionnaire. Per its independent operators page, a worker ruling is "effective as of the start date of the working relationship," so a covered shop may owe back premiums on a barber it called a renter.

• A real independent operator is not on your account. Policy 12-02-01 says they "may not be insured through the hiring company's (payer's) WSIB account."
• They can insure themselves. Under policy 12-03-02, Optional Insurance, a renter in business under a year is insured at one-third of the maximum. Because barbering is non-mandatory, policy 12-01-02 says a renter who wants it must also request by-application coverage.
• EI is a separate, federal rule. The shop is the deemed EI employer of every chair renter regardless of WSIB, covered in the guide to paying EI for a chair renter.

Are shop owners covered by WSIB?

No, not automatically. The WSIB's registration page says owners — "sole proprietor, partner or executive officer" — outside construction "aren't automatically covered," and section 11 of the Act excludes executive officers except through optional insurance.

Owners can apply for optional insurance as long as the shop has coverage for any employees, according to the WSIB. A new sole proprietor or partner is insured at one-third of the annual maximum, $121,700 ÷ 3 or $40,566.67; at the shop's rate, about $519 a year if that rate is the $1.28 class rate. An established owner is insured on last year's net business income, and one whose return showed a net loss gets no loss-of-earnings benefits, though "health care and other benefits may be provided."

What if a barber is hurt without WSIB?

The WSIB pays nothing, and the barber may sue the shop for damages. Your commercial general liability policy is the wrong tool for that claim. The Insurance Bureau of Canada's glossary defines liability insurance as paying "third parties," and calls employer's liability insurance — coverage for "an employee injured by the employer's negligence" — a separate product that "is not workers' compensation insurance."

No IBC page says outright that a standard CGL excludes employee injuries, so read your policy's exclusions with your broker. The barbershop insurance guide covers which policy pays when a client is hurt.

How do BC, Alberta and Quebec compare?

In these three provinces, a barbershop with employees is in the workers' compensation system by law.

How to register with WSIB if you opt in

The WSIB's by-application steps page lays the process out online: answer questions about your business, register, then sign and return the Employer by Application Form the WSIB emails with your premium rate. Coverage begins the date the WSIB receives that signed form. A shop that becomes mandatory, for example by adding a mandatory business activity, has 10 days from becoming a mandatory employer to register (s. 75); for a new business the WSIB counts from the first hire.

How to pull WSIB payroll figures from BarberFlow

WSIB reporting needs one number per period: gross insurable earnings for everyone on payroll. BarberFlow does not calculate, report or remit WSIB premiums, and it does not decide who is a worker. It keeps the records behind the number in the accounting tools, so the figure is an export, not a reconstruction.

The five WSIB mistakes Ontario barbershops make

1. Treating optional as irrelevant. Skipping WSIB moves the cost of a serious injury from the WSIB to you.
2. Reading "many hair salons" as "all." A second business activity the WSIB treats as mandatory can bring workers into coverage.
3. Assuming the shop's account covers the owner. It never does automatically outside construction.
4. Calling a barber a renter to skip premiums. The WSIB looks at control and profit, not the contract title, and a worker ruling reaches back to day one.
5. Letting coverage lapse. The WSIB can cancel by-application coverage for overdue premiums or a missing reconciliation form, and with it goes the section 28 bar on lawsuits.

Quick checklist

• Confirm your shop runs no business activity the WSIB treats as mandatory.
• Decide on WSIB on purpose: $1.28 per $100 of payroll against the cost of an uninsured injury.
• If you opt in, return the signed Employer by Application Form; coverage starts the day the WSIB receives it.
• Report insurable earnings quarterly once annual payroll reaches $20,000, even in a zero quarter.
• Settle any doubtful renter's status with the WSIB questionnaire.
• Buy optional insurance for yourself if you work the chair.

Still setting up? The guide to opening a barbershop in Ontario covers licensing, registration and hiring in order. Renting chairs carries a federal cost WSIB does not touch, explained in the guide to paying EI for a chair renter, and the barbershop insurance guide covers the policies WSIB does not replace.