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Self-Insurance
Self-insuring employers are those whom
BWC has granted the authority to administer their
own workers’ compensation claims. Self-insuring employers agree to abide
by BWC and the Industrial Commission of Ohio's (IC's) rules and regulations and to provide
accurate and timely benefits subject to those rules (
OAC 4123-19-03 and ORC 4123.35).
Self-insuring employers pay benefits directly to their injured employees and
service providers, and do not pay workers' compensation premiums into the state
insurance fund. The IC handles disputes in self-insuring claims.
BWC considers self-insurance
a privilege and monitors the activity of all self-insuring employers in Ohio to ensure that
benefits are paid fairly, promptly and in accordance with Ohio law. Injured
workers who feel their self-insuring employer is not complying
with the rules governing self-insurance can file a complaint
with BWC's self-insured department.
Qualifications to become a self-insuring employer
In order to receive the privilege of self-insurance you
must meet several requirements including:
- Have a minimum of 500 employees in Ohio;
- Have two years experience with the state insurance fund;
- Operate a BWC-certified Qualified Health Plan (QHP);
- Demonstrate strong financial stability;
- Have the ability to administer workers’ compensation insurance;
- Maintain an account with a financial institution in Ohio or draw
compensation checks from the same account as the payroll checks.
To become a self-insuring employer, complete an
application and submit it to BWC. The application must include:
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All financial records, documents and data necessary to provide a full
financial disclosure (as audited by a certified public accountant);
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Balance sheet and a profit and loss statement for the current year and the
previous four years;
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Organizational plan for claims processing;
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Proposed plan to inform employees of the change from state fund to
self insured including procedures employees must follow when filing for
compensation and benefits.
The Self-Insured Review Panel hears
requests for self-insurance. The panel signs a
resolution either approving or denying the request. If approved, BWC assigns you a
new policy number. Use this number on all future
correspondence with BWC.
Click here to learn more about becoming a self-insured employer.
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