BWC EM Capping Program
BWC EM Capping allows an employer to receive a cap on their premium increase for the policy year. The cap will equal 100 percent of the previous year’s published EM. The previous year’s EM could be an individual EM or group EM if the employer was participating in a group-rating plan that year.

The cap does not apply to employers whose EM is calculated with more than one policy’s experience. Additionally, BWC will determine cap eligibility prior to the beginning of the policy year. As a result, any adjustments will not remove the cap or allow an employer to be cap eligible.

Eligibility Criteria

• Individual EM for the current policy year of 1.01 or higher (debit rated) ;
• No more than 40 days of lapsed coverage within 12 months prior ro the June 1 preceding the rating year. Example: If the rating year starts July 1, 2009, employers cannot have more than 40 lapsed days between June 1, 2008, and June 1, 2009 ;
• Not more than 45 days past due on any premiums, including retrospective rating billings
• In the first year, agree to complete steps one, two, six and any other two steps of the 10-Step Business Plan for Safety as outlined in the Ohio Administrative Code (4123-17-70)
  Note: Eligible employers who want to keep the EM cap for the subsequent year must complete the remaining steps of the 10-Step Business Plan for Safety in that second year.

All eligible employers must complete and return to BWC an Agreement for 100-percent EM Cap (U-18) by Sept. 30 to indicate whether they plan on participating in the 100-percent EM cap. If an employer plans on participating, the employer must indicate who they will work with to ensure compliance with requirements, either a BWC representative or BWC-certified, 10-Step Business Plan for Safety sponsor. If an employer fails to comply with the requirements or does not wish to participate, BWC will calculate their premium rates using their uncapped EM for the policy year.

Related links

Agreement for 100 percent EM cap

10-Step Business Plan for Safety

BWC-Certified, 10-Step Business Plan for Safety sponsors

Self-Assessment for 10-Step Business Plan for Safety