Does the WSIB experience rating I inherit affect what I pay going forward?

It can, particularly in a share purchase, where the corporation's existing WSIB account, including its claims history and any resulting experience rating, continues unchanged because the same legal employer continues. A history of frequent or costly claims under the previous owner can mean higher ongoing premium costs for you going forward, since rating adjustments are generally tied to the account's history rather than to who currently owns the corporation.

In an asset purchase, this is more fact-dependent. You're generally establishing your own employer status, but whether the account, its history, or its rating carries over in some form, rather than starting fresh, can depend on the specifics of how the business continues to operate and how the workplace safety and insurance system treats the particular transaction — this isn't something your purchase agreement alone determines.

Because premium costs connect directly to ongoing profitability, it's worth understanding a target business's actual claims and rating history as part of financial due diligence, not just its current premium rate, since a rate can change once your specific transaction is assessed. A Treadstone business lawyer can help you get the right questions answered before you rely on current figures.