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.

• 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.