To cover the cost of workers' compensation coverage, BWC:
- Establishes an estimated premium for each employer for a policy year.
- Calculates installments based upon the schedule chosen by the employer.
- Creates an invoice for each installment which the employer can opt to receive by mail or view online.
What are premiums?
A premium is an amount of money paid to purchase workers' compensation coverage or other types of insurance.
A policy year is defined as the year in which a policy premium is paid, such as Jan. 1 to Dec. 31.
- Public employers pay their workers' compensation premium based on a Jan. 1 to Dec. 31 policy year.
- Private employers pay their workers' compensation premium based on a July 1 to June 30 policy year.
We use several factors to determine premium such as the employer's:
- Total payroll.
- Type of work performed.
- Workplace injury record.
For new employers, we base the estimated annual premium on the projected payroll the employer submitted on its application for workers' compensation coverage. For existing employers, we use historical payroll.
When are premiums paid?
We must receive your premium (installment) payments by the due date on the invoice. If we do not receive payment by that date, your coverage will lapse (end). Failure to pay your first premium installment by the due date will result in your coverage lapsing back to the effective date of the policy (when your policy started).
If one of your employees is injured during a coverage lapse, you're responsible for any injured-worker claims costs for the life of the claim, any unpaid premiums and possible penalties from BWC. Your policy will remain lapsed until you pay outstanding installment payments.
How do you make a payment?
You can guarantee BWC will receive your installment payments on time by paying online. Refer to Creating an e-account to get started.
Once you have an e-account, sign in to our website, and then click the Make a payment button.
You can pay online by the following options.
- With a credit card (MasterCard®, VISA® or American Express®).
- With a checking or savings account withdrawal - If you authorize payment from your checking or savings account, you can future date your premium payment.
Important: The date your payment is posted in our system is the date used for reinstatement of coverage.
Employers can also receive a rebate for paying premiums and completing true-up online with BWC's Go-green Rebate Program. Refer to Go-Green Rebate Program for more information.
What is payroll true-up?
At the conclusion of each policy year, BWC requires all employers to reconcile the payroll amount that was used to estimate their premium with their actual payroll amount for the policy year. This process is called submitting a payroll true-up report. Refer to Payroll true-up reports for more information.
Important: Every employer must submit a payroll true-up report, even if it has zero payroll.
If you have a significant change in payroll at any time during the policy year, we encourage you to call us at 1-800-644-6292 and report it. We can then adjust your premium installment payments accordingly.