OhioBWC - Basics:  Coverage Status

Coverage status

Throughout an employer's relationship with BWC, the account record maintained will reflect a particular coverage status based on the activity (or lack of activity) in the employer's policy account. When coverage is initialized the coverage status will be "active". If an employer's payment is not received timely the status of the account will become "lapsed". If the employer sends the payment and the payroll report in after the due date, the coverage status will become "reinstated" effective the date the payment was received.

Below is a list that defines each of the possible coverage statuses and a brief explanation of each one.
  • Active - Employer has maintained continuous, uninterrupted coverage from the policy's original effective date of coverage.
  • Bankrupt Cancel - When the BWC Law Department receives notice of a bankruptcy filing, the policy is placed into a "bankrupt canceled" status, utilizing the bankruptcy filing date as the cancellation date.
  • Bankrupt Combine - If a Debtor in Possession (DIP) policy exists, the bankrupt policy is combined into the DIP policy for rate making purposes. The policy reflects a bankrupt combine coverage status once the two polices are combined.
  • Cancel Effective Date - BWC cancels the policy on the date the policy became effective for several possible reasons i.e., a duplicate policy exists; employer no longer needs coverage; or employer decides to transfer coverage to another policy he or she purchased. Coverage, in effect, never existed under this policy.
  • Cancel Pending Final Review - When the cancellation request is received and the final payroll report has not been processed, the coverage status is updated to notify BWC that a cancellation request was received. This coverage status is used until the final payroll is processed. BWC does not refund the premium security deposit until we process the final payroll report and premium payment. Once we process the final payroll report we update the coverage status to Final Cancel.
  • Combined - BWC has transferred a workers' compensation policy to a successor The successor becomes liable for the experience rating, and any and all existing and future liabilities or credits of the predecessor.
  • Debtor in Possession - If an employer continues to operate after filing for bankruptcy, BWC establishes a Debtor in Possession policy, effective the day after the bankruptcy filing. When the bankruptcy plan is confirmed, or the bankruptcy case is dismissed, discharged or closed, the DIP coverage status is changed to Active.
  • Final Cancel - BWC cancels workers' compensation coverage after receiving a request from the employer. BWC changes the coverage status to Final Cancel once the outstanding payroll report has been processed. BWC applies the premium security deposit to any outstanding debits and refunds any remaining credit balance.
  • Lapsed - Employer no longer has workers' compensation coverage due to non-payment of premium. Coverage lapses the day after the payroll reporting due date.
    BWC charges the employer dollar for dollar any claims costs incurred while the employer has a lapsed coverage status. Additionally, BWC assesses the employer penalties. For BWC to reinstate coverage after a lapse, the employer must file missing payroll report(s) and pay the premium and penalties owed.
  • Reinstated - BWC will reinstate an employer's coverage after a lapse period on the date we receive any missing payroll report(s) and premium due.
  • Total Experience Only Transfer - For all successions taking place prior to Sept. 1, 2006, the policy is placed in this status when one policyholder takes over the entire Ohio operations from another policyholder and does not wish to retain the predecessor's policy number. The experience of the predecessor is merged into that of the successor.
Employers with questions or needing more information regarding coverage status should contact the employer contact center at 1-800-644-6292, and listen to the options.