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BWC Individual-Retrospective Rating Program
Overview

Individual-Retrospective Rating is an alternative rating plan that BWC offers employers to initially pay fewer premiums than the company would without the plan.

An employer participating in the individual-retrospective rating plan may earn a possible premium reduction assuming a portion of the risk. The greater portion of risk assumed, the greater the potential reduction in premiums.

Any employer wanting to participate in individual-retrospective rating must have at least $25,000 of estimated premium. Then, the employer must meet specific eligibility requirements for either the Tier I or Tier II individual-retrospective rating plan.

Tier II eligibility requirements are the same as Tier I unless an employer has entered into any partial payment arrangement with BWC. For Tier I, you cannot have entered into a partial payment agreement for the payment of assessments due the state insurance fund for the past three rating years before the start date of the retrospective policy year. BWC can waive this for Tier II applicants.

Coverage Status

You must be in an active status on the first day of the policy year. BWC's administrator may waive this requirement for new businesses moving into Ohio. Also, you cannot have cumulative lapses in coverage in excess of 15 days within the last five rating years.

Financial Information

To qualify for individual-retrospective rating you must demonstrate financial strength and stability. BWC considers several criteria to determine a company’s eligibility.

Outstanding Balances

You must be current on any and all undisputed premiums, administrative costs, assessments, fines or monies otherwise due to any fund BWC administer, including amounts due for individual-retrospective rating. In addition, you cannot have any unpaid audit findings or other unpaid billings as of the application deadline.

Employers enrolled in the individual-retrospective-rating plan Tier II must implement the BWC 10-Step Business Plan for Safety, within the first program year. The employer must agree to meet quarterly with a BWC representative to discuss the individual-retrospective-rating program and risk-management strategies that other employers are successfully using to control their workers' compensation costs.

Hazard Class

Public Employers

For all public employer taxing districts, the hazard group shall be that group specifically developed for such employers and that BWC's administrator periodically establishes with the advice and consent of the BWC Board of Directors. Therefore, public employers only have one minimum premium percentage, individual- retrospective-rating chart.

Minimum premium percentage is the percentage applied to the experience premium to determine the fixed cost BWC will charge, separate from the claims costs associated with the year of participation. BWC's administrator set those percentages to be effective for the Jan. 1, 2007, policy year as indicated in appendices A (Tier I) and B (Tier II). Please see the minimum premium percentage retrospective rate chart in Related links below.

Private Employers

Hazard groups for all private employers come from the individual-retrospective-rating section in the National Council on Compensation Insurance (NCCI) governing manual. Once an employer determines their hazard group, they can select the minimum premium percentage, individual-retrospective-rate chart for your hazard group.

Minimum premium percentage is the percentage applied to the experience premium to determine the fixed cost BWC will charge, separate from the claims costs associated with the year of participation. BWC's administrator set those percentages to be effective for the July 1, 2006, policy year as indicated in appendices A (Tier I) and B (Tier II). Please see the minimum premium percentage, individual-retrospective-rating chart in Related links below.

Applying for Individual Retrospective Rating

The application for any individual-retrospective rating plan is optional for you, subject to BWC’s acceptance. Once an employer decides to participate in individual-retrospective rating, all the employer’s business operations are subject to it.

To apply, you must complete either the Application for Individual-Retrospective Rating Plan for Private Employers (U-20) or the Application for Individual-Retrospective Rating Plan for Public Employers (U-21) in its entirety - including but not limited to, the selection of a per-claim limit and maximum premium percent.

BWC must receive the application 30 days before the start date of the policy year. An application for individual-retrospective rating is good for only one policy year. To continue the plan, an employer must apply and meet eligibility requirements yearly.

If an employer wants to make changes to their application, they must submit a new form prior to the deadline. If an employer wants to withdraw their application, they must do so in writing prior to the deadline. The document must be signed by an officer of the company. BWC will not accept any changes after the application deadline. BWC will use the latest application filed prior to the deadline to determine an employer’s premium obligation.