January 17th, 2017

Successorship In Ohio

Workers Comp 0

Successorship

In Ohio if you purchase, acquire, or merge with another business, BWC will use specific guidelines to determine if the claims-and-risk experience will be transferred from the seller to the buyer. I have included the BWC Fact Sheet regarding this, as it was updated and made more succinct at the beginning of 2016. To summarize, the experience will transfer from the predecessor policy to the successor policy most of the time, unless these conditions apply:

A material change in ownership and the successor changed the business substantially

The main (“governing”) manual classification changed

The process and hazard of the operation changed

There are exceptions and other considerations of course, such as the length of time between operations ceasing and the date of purchase, but as I mentioned, if the business pursuit remains the same most likely the experience will transfer along with the sale. Since this could have far-reaching effects on workers’ comp program eligibility and premiums, please contact me if you are planning to purchase another business.

Download BWC Fact Sheet