OhioBWC - Basics:  Lapsed Coverage

Lapsed Coverage

If BWC does not receive an employer’s payroll report with premium payment on time, then the employer’s workers’ compensation account will be placed in a lapsed status.

Should an accident occur during a period when coverage has lapsed, the injured worker can either sue the employer for all damages and expenses pertinent to the work related injury or file a claim with BWC. If the claim is allowed, then the employer must reimburse BWC dollar for dollar for the cost of that claim.

In addition, if workers’ compensation coverage has lapsed, BWC assesses penalties to the employer, one for filing the payroll report late and a second for paying premium late. The penalty for failure to file a payroll report on time is 1 percent ($3 minimum - $15 maximum) of the premium due. Failure to pay premium on time will result in a $30 flat penalty charge as well as a penalty charge of up to 15 percent of the premium due depending on how late the payment is received.

BWC may file assessment liens for non-payment of premiums and claims cost incurred during a lapse in coverage.

Coverage will be reinstated effective the date payment is received by BWC.