OhioBWC - Basics: (Policy library) - File

Policy Name:

Self-Insured Bankrupt Claims

Policy #:


Code/Rule Reference:

R.C. 4123.351; R.C. 4123.75

Effective Date:



Rick Percy, Chief of Operational Policy, Analytics & Compliance (Signature on file)


Claims Policy


All Injury Management policies, directives and memos regarding self-insured bankrupt claims that predate the effective date of this policy.







The purpose of this policy is to ensure that the management of workers’ compensation claims is properly transferred from a self-insuring employer that defaults to the BWC Self-Insured Bankrupt team.




This policy applies to field staff, specifically members of the Self-Insured Bankrupt team.




Self-insuring employer: An employer granted the privilege by BWC of administering its own workers’ compensation program and who pays compensation and benefits directly to the injured worker (IW).


Default: For purposes of this policy, when a self-insuring employer notifies BWC that it is no longer willing to administer a self-insured program or when it fails to pay compensation and/or benefits on an allowed workers’ compensation claim.  


Self-insuring employers guaranty fund: The fund established pursuant to R.C. 4123.351 through contributions from self-insuring employers, used to guarantee the payment of claims of a self-insuring employer in default.


Self-Insured Bankrupt Team: The BWC Field Operations team responsible for management of claims transferred to BWC from a self-insuring employer in default.  

Self-Insured Department: The BWC section that provides oversight and services to self-insuring employers, including underwriting of applications for self-insurance, self-insured claims audit, and consulting services.


Third-party administrator: An organization that processes workers’ compensation claims on an employer’s behalf.




A.    It is the policy of BWC to transfer management of workers’ compensation claims in a timely and efficient manner to BWC from a self-insuring employer in default.


B.    It is the policy of BWC to pay compensation and benefits from the guaranty fund on claims transferred to BWC when a self-insuring employer defaults.


BWC staff may refer to the corresponding procedure for this policy entitled “Self-insured Bankrupt Claims” for further guidance.