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.

Then, BWC will combine the policy with that of the new owner. Both the former employer and the successor will complete and file the Notification of Business Acquisition/Merger or Purchase/Sale (U-118). The successor must file the Application for Ohio Workers’ Compensation Coverage (U-3) to establish his or her own coverage along with the U-118. The State Insurance Fund Manual explains rules concerning specific situations.

BWC transfers to and/or combines the former employer’s experience and liabilities with the new owner’s experience and liabilities. 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 you have questions concerning transfers, please call 1-800-OHIOBWC, and follow the options.