Ownership is an important component of experience rating. It determines what loss and payroll data goes into calculating a business’s experience modification. The California Workers’ Compensation Experience Rating Plan—1995 (ERP) specifically defines “ownership” for the purposes of experience rating. Note that these definitions may differ in comparison to definitions used in other instances.
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) website provides a number of resources, listed below, to assist you in learning the definitions of ownership and how they affect the combination of entities. We highly recommend that agents, brokers and insurers review these definitions prior to reporting changes in ownership and/or combinability of entities through the WCIRB Connect® Ownership Information Submission Tool.