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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:
- All financial records, documents and data necessary to provide a full
financial disclosure (as audited by a certified public accountant);
- Balance sheet and a profit and loss statement for the current year and the
previous four years;
- Organizational plan for claims processing;
- 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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