When a business changes ownership, new owners often have questions about how to handle their workers’ compensation policy. To make their transition easier, here’s what you need to know.
When a business is sold, the new owner must notify Pinnacol within 90 days of the date when the ownership officially changed. In addition to reporting ownership changes, name changes, mergers, consolidations, etc. should also be reported to your Pinnacol underwriter.
If there is a 100 percent ownership change, the new owners may assume the current policy, along with the completion of anew application.
There are two options for a 100 percent change in ownership:
- Rewrite to a new policy
- Transfer the existing policy to the new 100 percent owner. The transfer of the policy must include the signed Policy Transfer Acknowledgment form. See exceptions below when we need to cancel and rewrite to a new policy and not transfer the ownership to the existing policy.
Following are exceptions that do not allow a transfer of policy when there is a 100 percent change in ownership. In these cases,the new owner must cancel the existing workers’ compensation policy and rewrite a new policy:
- Large deductible
- Safety group
- Other States Coverage
Please contact your agency relationship manager with any questions.