OhioBWC - Basics:  Combine and Transfer of Coverage

Combine and Transfer of Coverage

BWC transfers all of an employer's accidents or claims experience when a new owner wholly assumes the former employer's business. If the new owner purchases only a portion of the business, BWC only transfers that part of the former employer’s experience. In addition, a BWC auditor inspects the former employer’s payroll records to allocate payroll to be transferred. The auditor also verifies the claims to be transferred to the successor for rate calculations.

BWC transfers the account to the new owner if both the former employer and the successor jointly complete and file the Notification of Business Acquisition/Merger or Purchase/Sale (U-118).

Former employers also may elect to cancel their account. In this case, successors must file the Application for Ohio Workers' Compensation Coverage (U-3) with BWC to establish their own coverage.

BWC transfers to and/or combines the former employer’s experience with the new owner’s experience. In addition, BWC uses the claims and payroll experience of the acquired operation to calculate future premiums for the new owner.

If the new employer elects not to transfer coverage, coverage may not be effective from the time the new owner acquired the business to the time BWC receives a new security deposit for the new coverage application.