The Hidden Costs of Not Insuring Your Foreign Workers
When it comes to deciding on healthcare coverage for foreign workers, many Canadian employers focus on the upfront cost of insurance premiums.
It makes sense, as these premium costs can quickly add up the more workers you have on the payroll.
But what they often miss is far more expensive: the hidden costs of not insuring these essential team members.
The reality is that failing to provide foreign workers adequate health coverage can cost your business 20 times more than the price of comprehensive coverage. And if you aren’t taking steps today to offer the best coverage you can, you may already be behind.
A $4.1 Million Wake-Up Call
In 2023 alone, Canadian companies paid over $4.1 million in fines for failing to meet their obligations to foreign workers. But as large as that number is, these fines are just the tip of the iceberg.
A $50,000 penalty for non-compliance may not seem like a significant issue at first.
Within months, that non-compliance could cause you to lose $1 million in contracts (twenty times the fine amount) when clients quickly distanced themselves from a company listed on the government's public non-compliance registry.
The Productivity Drain You Can't Afford
Think about your foreign workers for a moment. Many of these hardworking individuals are giving much of their time to physically demanding jobs in key industries.
Whether it's in agriculture, construction, or manufacturing sectors, their health directly impacts their performance and safety.
Now imagine what happens when a worker needs dental care but can't afford it. Or when they need new glasses to safely operate machinery.
What happens when a worker doesn’t seek help for an injury, and it continues to get worse because they're unsure of the cost of getting help?
As you can imagine, the consequences show up quickly:
Absenteeism increases as minor health issues cascade and become problems that force workers off the job entirely.
Companies see lower productivity, as workers are “on the job” but not at their peak due to untreated pain or other healthcare issues.
You see higher turnover rates as foreign workers leave for employers who provide better healthcare support (and the recruitment and training costs that come with replacing experienced workers rise).
Workplace accidents that create liability issues, Workers' Compensation claims, and potential legal exposure when health issues contribute to on-site injuries.
Consider this: over 80% of foreign workers report struggling with adjustment challenges and access to health services.
When these issues go unaddressed, your entire operation feels the impact.
Is Your Company Facing a Compliance Time Bomb?
Many companies skip past the risks, thinking “It could never happen to us.”
But the reality is that Canadian regulations require you to provide at least basic health coverage for temporary foreign workers until they're eligible for provincial healthcare.
And enforcement is tightening. Employer inspections are increasing, and the government has moved from warning to pursuing non-compliant employers with real, tangible consequences. Finding yourself out of compliance can lead to:
Heavy fines that can reach $100,000 per violation
Public listing on non-compliance registries that damage your reputation for years
Contract cancellations as clients invoke integrity clauses
Multi-year bans from hiring foreign workers, crippling businesses that depend on this workforce
Mandatory six-year record retention requirements that create ongoing administrative burdens
Your Reputation Is Worth The Investment
When your company appears on the government's public non-compliance registry, the damage doesn't stop when the penalty is paid.
Not only are you risking a loss of trust among your employees, but you’ll also see word spread among foreign worker communities who choose other companies over yours.
In 2025, you can’t afford to lose business opportunities or recruiting difficulties due to a lack of healthcare coverage.
Let's look at the actual numbers. Comprehensive health insurance for foreign workers costs a fraction of what these hidden expenses total:
One workplace accident from untreated health issues: $50,000+
Replacing a single experienced worker due to inadequate benefits: $15,000-$30,000
A compliance fine: $25,000-$100,000
Lost contracts from reputational damage: Potentially millions
Now compare those costs to providing comprehensive coverage – even coverage that includes dental, vision, prescription drugs, mental health support, and multilingual assistance. These are the key services that keep your workers healthy and productive.
Most of all, they demonstrate a genuine investment in foreign workers, which can lead to higher levels of worker loyalty and pride.
What Smart Employers Are Doing Differently
The top Canadian employers don’t view health insurance as an expense anymore. In fact, they have begun to treat it as essential business protection.
They're providing comprehensive coverage that fills the gaps in provincial plans, protecting workers from day one with benefits that address their unique needs.
They're investing in their workers' health and, in return, they're seeing lower turnover rates, higher productivity, and an increase in how long their workers stay.
What’s Your Next Step?
It’s no longer a question – your company can’t afford not to invest in quality healthcare coverage for your foreign workers.
In an economy that is becoming increasingly reliant on foreign work, paying it back in kind with robust health benefits is a strategic and ethical move. By prioritizing the well-being of your workers, you are not only fulfilling your duty of care as an employer but also creating a positive work culture that will attract top talent.
Want to learn more about how to get started? Contact us today to discover how comprehensive health coverage can safeguard both your employees and your business.
Our team specializes in foreign worker health insurance and can show you exactly how much you're risking, and how affordable real protection actually is.
Contact the FWCHP Today
Looking to provide your foreign workers with the necessary healthcare coverage?
Click through the video below to learn about the FWCHP.
