Base-rating

Some base-rating facts ...

• Base-rated employers pay their workers compensation premiums according to base rates recommended by BWC’s administrator and approved by the BWC Oversight Commission.
• Base rating allows employers to pay workers compensation premiums based on the average costs of claims filed against all employers in like industries, utilizing the same manual classifications.
• Manual classifications are assigned based on the description of work being performed (this information is supplied by the employer on the initial coverage application).
• The base rate assigned to a particular manual classification is determined by a review of combined claims costs in the experiences of all employers associated to that manual classification.
• An employer’s “experience” is a statistical picture of claims costs during the oldest four of the most recent five-year period.
• BWC limits the average base-rate increase or decrease to a 30-percent yearly maximum. This provides relief from the occasional fluctuation that may occur from one year to the next.
• Approximately 70 percent of all Ohio employers are base-rated.