|OhioBWC - Basics: Elective Coverage|
Elective coverage for employers
All employers with one or more employees must carry workers’ compensation coverage. It’s the law. However, Ohio law makes coverage optional for owners or ministers in one of the following categories:
If you do elect to cover yourself, this coverage is in addition to or is supplemental to their current policy. Employers can apply for Elective coverage within the initial application, Application for Ohio Workers Compensation Coverage (U-3), or at a later date with the Application for Elective Coverage (U-3S). You must complete an additional application for Elective coverage to cover owners or ministers you wish to add at a later date. Elective coverage is effective the date BWC receives the application.
If you opt for elective coverage, you do not report your payroll under the same manual category as your employees. Report elective coverage payroll only to manuals with the suffix SN (Supplemental NCCI), and report employees' payroll under manuals with the suffix RN (Regular NCCI).
Listed below are the other rules for reporting payroll for elective coverage.
Sole proprietor or partner coverage
We will cancel the elective coverage if you fail to report at least the minimum required amount of payroll for any reporting period that the coverage is in effect. Employers are responsible for the payment of premiums up to the date they ask to terminate their elective coverage.
Remember that if you choose not to cover yourself, and you are injured at work, BWC will not provide coverage. And other insurance may not cover your work-related disability or medical bills. Contact your insurance carrier if you have any questions.
Independent contractors and subcontractors
Limited liability companies (LLC)
Ministers or associate ministers
Second, if a church decides not to cover its ministers, the ministers may elect to establish their own coverage as sole proprietors using the U-3. Payroll reporting guidelines are the same as for sole proprietors.
Family farm corporate officers
Individual incorporated as a corporation
An individual incorporated as a corporation is defined as a sole owner corporation and refers only to the owner of the corporation in terms of being excluded as an employee. This includes any corporation (S-Corp, LLC Corp, C-Corp) as long as there is a sole owner with no employees.
An individual incorporated as a corporation, sole owner, zero employees does NOT have to
establish or maintain an Ohio workers’ compensation policy unless the employer is required
by another authority to show proof of workers’ compensation coverage (in which case having
elective coverage would be sufficient) or if, at any time, coverage becomes
required such as when the employer hires an employee or is no longer sole owner.
Minimum/Maximum payroll reporting guidelines are the same as those for sole proprietors. If the employer fails to report at least the minimum reportable supplemental payroll for any reporting period, we will cancel the coverage.
Viewing and updating existing elective coverage Those of you who have elective coverage in addition to your regular policies can view information about the coverage in Elective coverage. You also can view and update information for the other individuals enrolled, such as Social Security number, address and contact information, and add or cancel coverage online.
Request to cancel elective coverage