Base-rated employers pay their workers' compensation premiums according to base rates recommended by BWC's administrator and approved by the BWC Board of Directors.
Base rating allows employers to pay workers compensation premiums based on the average costs of claims filed against all employers in similar industries, utilizing the same manual classifications. Manual classifications are assigned based on the description of work being performed (this information is supplied by the employer on the initial coverage application).
The base rate assigned to a particular manual classification is determined by a review of all claims costs in the experiences of those employers assigned to that manual classification. An employer's experience is a statistical picture of claims costs during the oldest four of the most recent five-year period.
BWC limits the average base-rate increase or decrease to a 25-percent yearly maximum. This provides relief from the occasional fluctuation that may occur from one year to the next.
Approximately 70 percent of all Ohio employers are base-rated.