What is Self Insurance?
Self-insuring employers are those whom BWC has granted the authority to administer their own workers’ compensation claims. Self-insuring employers agree to abide by BWC and the Industrial Commission of Ohio’s (IC’s) rules and regulations and to provide accurate and timely benefits subject to those rules outlined in the Ohio Revised Code. Self-insuring employers pay benefits directly to their injured employees and service providers, and do not pay workers’ compensation premiums into the state insurance fund. The IC handles disputes in self-insuring claims.
CSI has the experience in developing and administering your current self insured program or transitioning your workers’ compensation program from the state fund. Our knowledgeable staff will assist in the analysis, application process and administration from beginning to end.
Qualifications to become a self-insuring employer.
In order to receive the privilege of self-insurance you must meet several requirements including:
- Have a minimum of 500 employees in Ohio;
- Have two years experience with the state insurance fund;
- Operate a BWC-certified Qualified Health Plan (QHP) or Medical Management Plan;
- Demonstrate strong financial stability;
- Have the ability to administer workers’ compensation insurance;
- Maintain an account with a financial institution in Ohio or draw compensation checks from the same account as the payroll checks.
To become a self-insuring employer, complete an application and submit it to BWC. The application must include:
- All financial records, documents and data necessary to provide a full financial disclosure (as audited by a certified public accountant);
- Balance sheet and a profit and loss statement for the current year and the previous four years;
- Organizational plan for claims processing;
- Proposed plan to inform employees of the change from state fund to self insured including procedures employees must follow when filing for compensation and benefits.
The Self-Insured Review Panel hears requests for self-insurance. If approved, CSI will administer all aspects of your program in conjunction with your business.