A two-tiered program designed to allow employers to potentially reduce annual premium by assuming a portion of the risk associated with claim costs.
The employer will fund all of the costs incurred for a claim within a policy year up to the maximum per claim limit chosen. In return, the Ohio Bureau of Workers’ Compensation (BWC) rewards this assumption of risk with reduced premium. The employer shall enroll annually in the program, but each retrospective rated policy year carries a 10 year liability period. The employer will pay a minimum or reduced premium to BWC at the usual policy year payment schedule. BWC will bill the employer annually for ten years for the payments incurred in claims from the retrospective policy year.
At the end of the 10 year period, a final evaluation will be performed by BWC and the employer will be billed for any remaining reserves on all policy year claims.