Ohio workers' compensation insurance

The state of Ohio workers’ compensation system is different than in most other states. Ohio uses what is called a monopolistic state fund, which means that workers’ compensation insurance can only be purchased through a government-operated fund – not through a private insurer.

Any business that employs even one person in Ohio, from Columbus to Cincinnati, must carry workers’ compensation insurance.

It’s crucial that employers correctly classify individuals as employees or independent contractors. If the employer manages working hours, materials, travel routes, and quality of performance, then the worker is an employee and the business owner is required to provide workers’ comp coverage.

The exception is domestic workers, such as housekeepers, babysitters, and gardeners, who earn less than $160 per calendar quarter. If the worker is paid more than that amount during a 13-week period, then the employer is required to have workers’ comp coverage.

Volunteers are also exempt from workers’ comp insurance requirements, unless their work is for a public employer, such as a volunteer firefighter or emergency medical technician.

Out-of-state workers are subject to workers' compensation laws in their own states; Ohio employees working in other states may need additional coverage.

A sole proprietor or member of a partnership must carry workers’ compensation insurance for any employees of the business, but it is optional for owners to have insurance for themselves. However, it's still a good idea to buy coverage for yourself.

Without workers' comp, you may end up paying for expensive medical bills out of pocket, as personal health insurance plans often won't cover work-related injuries. Workers' comp also pays for part of the wages you miss out on while recovering, which can be a huge loss if an injury sidelines you for an extended period.

Ohio employers are required to carry workers’ compensation insurance for part-time employees. However, if an injury occurs, the part-time employee’s benefits would be calculated according to a specific formula that takes into account how many hours the person usually works.

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

Workers' compensation insurance in Ohio must be purchased through the Ohio Bureau of Workers' Compensation (BWC). In limited cases, businesses can qualify for self-insurance.

Any Ohio workers’ compensation claims go through the BWC or the Ohio Industrial Commission (IC).

If an employee suffers a workplace injury or develops an occupational disease, the BWC pays for medical care and lost wages. The employee can see any doctor for their first visit, but then must choose a medical provider certified by the BWC.

Workers' compensation benefits for injured employees in Ohio include:

• Medical benefits
• Temporary total disability benefits
• Scheduled loss awards
• Permanent total disability benefits
• Change of occupation awards
• Death benefits for fatal incidents

Workers' compensation in Ohio is a no-fault system, which means that employees are eligible for benefits regardless of who's responsible for the injury. For details, visit the BWC page on types of compensation.

Workers' compensation insurance usually includes employer's liability insurance, but that's not the case when it's purchased through a state fund.

Ohio employers who want this coverage, which protects against employee lawsuits over injuries, must purchase it as stop-gap coverage. They can usually add it to their general liability policy purchased through a private insurer.

General liability insurance and other small business insurance policies are available at competitive rates in the open market in Ohio. Start a free online application with Insureon to compare quotes from leading insurers today.

Workers’ compensation death benefits in Ohio can be awarded to dependents – those who relied on the deceased worker for financial support. Dependents include:

• A spouse
• A child under 18
• A child under 25 who is a full-time student
• A disabled child of any age who cannot earn a living

There might be other family members who qualify as wholly or partially dependent, but that would be evaluated on a case-by-case basis.

Death benefits are 66.67% of the worker’s average weekly wage, within the state maximum and minimum, which changes annually. The BWC would decide how to allocate benefits among dependents. Generally, the spouse would receive benefits until he or she dies or remarries. Upon remarriage, the spouse would receive two years’ worth of benefits in a single lump sum.

The workers’ compensation death benefits also include up to $5,500 for burial expenses.

For both workers’ compensation death benefits in Ohio and regular benefits claims, the statute of limitations is one year from the time of injury or death.

If you are ready to explore commercial insurance coverage for your Ohio business, start a free online application today to compare quotes from top-rated insurance companies.