Workers compensation insurance pays for medical care, disability benefits, physical therapy and lost wages if an employee gets hurt or sick on the job. Workers compensation also pays for funeral costs if an employee dies as a result of a work-related injury or illness.
By Ohio law, employers with one or more employees must have workers compensation insurance for their employees or be self-insured if the business is large enough.
Get Workers’ Comp Quotes For Your Business
Who Needs Workers Compensation Insurance in Ohio?
According to the Ohio Bureau of Workers Compensation, you will need to start a workers compensation policy or update a policy if:
- You are starting a new business
- You work as an independent contractor or subcontractor and you have employees
- You are acquiring, merging, purchasing or selling a business
- You are updating your existing workers compensation policy and making changes
How Ohio Workers Compensation Works
Ohio has a no-fault system in place for workers compensation.
If an employee gets hurt or sick at work, they will receive workers compensation benefits for medical bills and lost wages. The employee does not need to prove that the employer caused an injury or an illness to receive workers compensation benefits.
In exchange for workers compensation benefits, employees give up the right to sue the employer for an injury or illness due to the job.
Applying for Ohio Workers Compensation Insurance
In Ohio, workers comp insurance is available only through the Bureau of Workers Compensation. There’s a minimum, non-refundable $120 application fee.
Once the Ohio Bureau of Workers Compensation processes the application, your workers compensation insurance begins and a certificate is issued.
According to Ohio law, you must post a copy of your certificate from the Ohio Bureau of Workers Compensation in a highly visible location at your company site. You also must post the certificate on an intranet site where it is available to all your company employees.
Self-Insuring in Ohio
When it comes to workers compensation, some large Ohio businesses choose to insure themselves. What this means is the business is directly responsible for paying medical bills and lost wages for employees who get sick and injured on the job.
An injured employee would file a claim directly with the employer and the employer would pay for the benefits out of company funds.
To be self-insured for workers comp in Ohio, the state requires:
- You have at least 500 employees working in Ohio
- You have been operating for at least two years
- You can provide five years of financial statements
- You have an organizational plan for administering the workers compensation claims
How to Make a Workers Comp Claim
If you are injured on the job, you need to report the incident to the Ohio Bureau of Workers Compensation. Either you, the employee, your employer, a medical provider or a legal representative may file the claim.
Workers compensation claims can be filed online, by phone, fax, mail and in-person. Once the claim is received a claims number is assigned and a claims representative starts the claims process.
After you file the claim, you will receive a notification letter within a few days and the Ohio Bureau of Workers Compensation will investigate the claim. The bureau has up to 28 days to decide whether to accept or deny the workers compensation claim. Disputed or denied claims can be appealed.
Workers Comp for the Self-Employed
Employees with one or more employees must carry workers compensation insurance or be self-insured. It’s the law in Ohio.
But the law also makes workers compensation coverage optional for the following business types:
- You are a sole proprietor
- You are in a partnership
- You have a limited liability company acting as a sole proprietor
- You have a limited liability company acting as a partnership
- You have family farm corporate officers
- You are an individual incorporated as a corporation with no employees
- You are an ordained or associate minister of a religious organization
Featured Partner Offers
1
Clear Blue Insurance
Extremely low
A- (Excellent)
1
Clear Blue Insurance
Compare quotes from participating carriers via Simplybusiness.com
2
CNA
Very low
A (Excellent)
3
Travelers
Very low
A++ (Superior)
Penalties for Not Having Ohio Workers Comp Insurance
If workers compensation coverage has lapsed, the Ohio Bureau of Workers Compensation charges penalties for filing the company’s payroll report late. Why is this report so important? A company’s annual payroll is used to calculate the company’s annual workers compensation insurance cost.
The penalty for failure to file a payroll report on time is 1% of the premium due with a $3 minimum and $15 maximum.
A second penalty is assessed for paying a workers compensation premium late.
Failure to pay the workers compensation premium on time results in a $30 flat fee and a 15% penalty charge of the amount due.
Average Cost of Ohio Workers Compensation Insurance
The premium rates for Ohio workers compensation insurance vary across businesses. Some businesses, like construction, are more expensive to insure than others. An accounting firm would be a lower risk to insure. Other key factors affecting workers compensation premiums include your company’s payroll and your company’s claims history.
The estimated employer cost for workers compensation in Ohio is 67 cents for every $100 covered in payroll, according to Insureon.
Statute of Limitations
Beginning in October 2017, the statute of limitations for filing a workers compensation claim in the state of Ohio was shortened from two years following the date of an injury to one year. Ohio workers have one year to make workers compensation claims for injuries and illness suffered on the job.
Business Insurance Made Simple
Compare Free Quotes From Top Insurers at Simply Business. Get a Policy in Under 10 Minutes.
