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Published on May 8
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A Guide for New Employers
With few exceptions, the Ohio Revised Code mandates that employers with one or more employees must have an active and current Workers’ Compensation Insurance Policy in place through the Ohio Bureau of Workers’ Compensation (BWC). Failing to obtain or maintain a workers’ compensation policy can result in penalties and fines that can be damaging to the financial health of your business and the physical health of your employees. This guide will provide you with valuable information and guidance in the process of obtaining your company’s workers’ compensation policy.
Completing the Application for Ohio Workers’ Compensation Coverage
The first step in obtaining coverage for your employees is to complete the Application for Ohio Workers’ Compensation Coverage, commonly known as the U-3. While completion of the application is not difficult, it does help to gather some information prior to beginning the U-3. These items include:
• Full legal name of your business or your own (if operating under your own name)
• Federal Identification Number (FEIN) your business or your personal Social Security Number
• Physical street address of your business and mailing address (if applicable)
• A detailed description of the type of work performed by your business and equipment used, for classification purposes
• Estimated 12-month payroll
Individuals who are self-employed, a partner in a business, an officer of a family farm corporation, or an individual incorporated as a corporation are not automatically covered. You may voluntarily elect coverage in the Elective Coverage and Owners/Officers/Ministers sections of the U-3.
Upon receipt of a completed application and a $120 non-refundable application fee, your company’s BWC policy will be considered effective. Payments may be made by check/money order, credit card, ACH, or at any of the BWC Customer Service Offices. Timely submission of your first installment payment is critical.
Notice of Estimated Annual Premium
After processing your application, the BWC will issue a Notice of Estimated Annual Premium based on the 12-month payroll estimate provided with your application. Prompt payment of your installment payment will ensure that your policy is activated quickly and keeps you compliant.
New Employer Kit
Along with the invoice, you will receive the New Employer Kit. The kit contains a welcome letter, an overview of the workers’ compensation system, a managed care organization (MCO) selection guide and report card, as well as required employer postings. The kit provides valuable information that can help you navigate the early days of your new workers’ compensation policy.
Certificate of Ohio Workers’ Compensation Coverage
At the same time as your New Employer Kit, you will receive a Certificate of Ohio Workers’ Compensation Coverage. This certificate includes the effective date of your policy, which is important for all future workers’ compensation claims. The Certificate of Ohio Workers’ Compensation Coverage must be posted in your place of business as proof of coverage.
Managed Care Organization Selection
Your New Employer Kit will contain information on selecting a Managed Care Organization (MCO) partner. An MCO is a private company that employers select to medically manage their workers’ compensation claims for injured employees. The Ohio BWC requires all employers that pay into the state fund to have an MCO to manage their claims, and the cost is already built into your premiums.
You may select an MCO of your choice or have one assigned to you by the Ohio BWC. The request form for selecting an MCO may be submitted online, by mail, or through the MCO you’ve selected.
Workers’ Compensation Insurance protects your new business
Your workers’ compensation insurance policy protects your company and your employees. The Ohio BWC and your MCO can help you navigate the path toward coverage for your business.
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