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OhioBWC - Basics: Transfer of Coverage
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Transfer of Coverage
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BWC transfers all of an employer’s total accidents or claims experience when a new
owner wholly assumes the former employer’s business. If the new owner purchases
only a part of the business, BWC only transfers that part of the former employer’s
experience. A BWC auditor inspects the former employer’s payroll records to
allocate payroll to be transferred. In addition, the auditor verifies the claims
to be transferred to the successor for rate calculations.
BWC transfers the account to the new owner if both the former employer and the
successor jointly complete and file form U-9, Application for Transfer of Workers’
Compensation Account and Premium Obligation to Succeeding Employer.
The form U-9 allows continuous coverage on employees of an employer who wholly
assumes the operations of another employer who has active coverage. The U-9 also
consolidates accounts, payroll records and experience. The U-9 may be obtained from
any service office, by contacting Policy Services or by ordering it online.
The former employer may also elect to cancel his or her account. In this case,
the successor must then file the U-3 form, Application for Ohio Workers’
Compensation Coverage, with BWC to establish his or her own coverage. The State
Insurance Fund Manual explains rules concerning specific situations.
BWC transfers to and/or combines the former employer’s experience with the new
owner’s experience. In addition, BWC uses the claims experience and the payroll
experience of the acquired operation in calculating future premium obligations of
the new owner’s operation.
If the new employer elects not to transfer coverage, coverage may lapse from the
time the new owner acquired the business to the time BWC receives a new deposit
for a new application.
If you have questions concerning transfers, please contact BWC’s Policy Services
department at 1-800-OHIOBWC, and follow the options.
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