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Policy
Name:
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Self-Insuring
Employer Cancellation Policy
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Policy
#:
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SI-05-01
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Code/Rule
Reference
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Ohio
Revised Code (ORC) 4123.35 & 4123.01; Ohio Administrative Code (OAC) 4123-19-03, 4123-19-05, 4123-19-06, & 4123-19-14.
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Effective
Date:
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New
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Approved:
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Rex
Blateri
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Origin:
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Self-Insured
Department/Employer Services
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Supersedes:
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N/A
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History:
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New
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Review
Date:
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03/01/2026
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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.