Both predecessor (seller) and successor (buyer) must notify BWC of a transfer in operations. BWC transfers all of an employer's claims experience when a new owner wholly assumes the former employer's business. If the new owner assumes only a portion of the business, we only transfer that part of the former employer's experience to the succeeding employer.
If you're the successor and a new employer without Ohio workers' compensation coverage, you must complete an Application for Ohio Workers' Compensation Coverage (U-3). If you already have Ohio workers' compensation coverage, you only need to submit the Notification of Business Acquisition/Merger or Purchase/Sale (U-118).
To learn about about the experience or outstanding financial obligations of the predecessor employer before you acquire a business, complete the Request for Business Transfer Information (AC-4). Both seller and potential buyer MUST sign this form.
After notifying BWC of the transfer and a request to cancel coverage, the predecessor employer has 45 days from the date of cancellation to report the final payroll, also known as true-up. As a predecessor employer, your policy must be in a cancelled status to access the Payroll true-up report.
Important: If you have additional locations covered under the policy for which a portion of the business was transferred, do not complete a cancellation request. Complete the U-118 instead.
To learn more about successor liability, review the successorship fact sheet.