OhioBWC - Basics: (Policy library) - File


Policy Name:

Self-Insuring Employer Cancellation Policy

Policy #:


Code/Rule Reference

Ohio Revised Code (ORC) 4123.35 & 4123.01; Ohio Administrative Code (OAC) 4123-19-03, 4123-19-05, 4123-19-06, & 4123-19-14

Effective Date:



Rex Blateri


Self-Insured Department/Employer Services





Review Date:




I.      Policy Purpose


The Ohio Bureau of Workers' Compensation (BWC) sets forth the following guidelines for processing a self-insuring (SI) employer’s request to cancel its self-insured workers’ compensation coverage or BWC-initiated cancellation of an employer’s self-insured workers’ compensation coverage. 


II.    Applicability


This policy applies to active SI employers, including self-insured professional employer organizations and self-insured alternate employer organizations, their authorized representatives, and the Self-Insured Department (SI Department).


III.   Definitions

A.    Cancellation of self-insured workers’ compensation coverage:  The termination of the privilege to pay compensation and benefits directly when: an employer ceases operation; the employer no longer requires coverage in Ohio; the employer returns to the state insurance fund; or BWC initiates cancellation pursuant to OAC 4123-19-06

B.    Paid Compensation:  All amounts of compensation paid in a calendar year by SI employers as outlined in the Report of Paid Compensation and Case Reserves (SI-40) form.

C.   Self-Insuring Employer (SI Employer):  An employer that has been granted the privilege of paying compensation and benefits directly.

D.   Self-Insured Review Panel (SIRP):  A three-person panel appointed by the Administrator to provide SI employers with hearings on matters referred to the panel, or as requested by the employer.

E.    Semi-Annual Assessments:  Contributions made by every SI employer based on a percentage of paid compensation for the previous calendar year.  Assessments are paid into the following self-insured funds:

1.    Safety & Hygiene;

2.    BWC Administrative Cost;

3.    Industrial Commission Administrative Cost;

4.    Surplus Fund (Mandatory);

5.    Self-Insuring Employers Guaranty Fund (SIEGF); and

6.    Surplus Fund (Disallowed Claims Reimbursement). *


* The Surplus Fund (Disallowed Claims Reimbursement) is optional.

IV.  Policy

A.    SI employer-initiated cancellation.

1.    An SI employer may cancel its workers’ compensation coverage if one or more of the following criteria are met:

a.    The employer ceases operations in Ohio;

b.    The employer no longer has employees in Ohio; or

c.     The employer desires to become a state fund risk.

2.    The SI employer’s cancellation request must be in writing and provide BWC with the following information:

a.    Reason for the cancellation;

b.    Effective date of the cancellation;

c.     Acknowledgement of continued requirements as described in section IV.C. of this policy;

d.    Loss run showing all active and inactive claims within the statute of limitations;

e.    Designated administrator contact information;

f.      Source for funding future compensation and medical benefits;

g.    Third-party administrator contact information; and

h.    Active state-fund policy number, if applicable.


B.    BWC initiated cancellation.

1.    BWC may initiate cancellation of an employer’s self-insured policy for failure to meet statutory or administrative requirements. BWC will determine the:

a.    Effective date of the cancellation; and

b.    Date the employer must return to the state insurance fund, if the employer still has employees in Ohio.

2.    BWC will notify the employer in writing of the reason for cancellation.

3.    The employer has fourteen (14) days from receipt to appeal the decision. All appeals must be submitted in accordance with section V. of this policy.

C.   Employer’s continued obligations after cancellation of self-insured workers’ compensation coverage.

1.    Unless otherwise directed, the employer is required to continue to administer claims as required by law that occurred in the period of self-insurance.

2.    The employer must pay timely all assessments, penalties, and claims costs.

3.    The employer must submit self-insured claims experience, if the employer is returning to the state insurance fund.


V.    Resolution of Complaints


A.    Any complaints or disputes related to this policy must be submitted in writing to the SI Department, via mail or email, as detailed in the Self-Insured Employer Dispute/Protest Policy.


Ohio Bureau of Workers' Compensation

Self-Insured Department

30 W. Spring St., 22nd Floor

Columbus, Ohio 43215-2256

Email: siinq@bwc.state.oh.us


B.    The employer may file a written appeal of the SI Department’s decision to the SIRP.