It is very important for employers to understand the importance of timely premium payments. If BWC does not receive an employer’s premium on time, the BWC places their account in a lapsed status. Lapsed coverage can be a very costly mistake for numerous reasons:

Employer liability… If a claim occurs while coverage is lapsed the injured worker can either sue the employer for damages and expenses related to the injury or file a claim through BWC. If BWC allows the claim the employer must reimburse BWC for the total lifetime cost of the claim.

Penalty assessments… BWC assesses penalties for late premium payments and lapses.

Ineligibility for group rating programs… An employer with cumulative lapses in coverage in excess of 40 days during the policy year will be ineligible for group rating programs for the next policy year.

Ineligibility for other BWC rating programs… Cumulative lapses in coverage in excess of 40 days within the preceding 12 months can result in the employer being ineligible for the Lapse Free Rebate, Drug Free Safety Program, One Claim Program and EM Cap Program.