Managing Successor Liability for BWC Premium Increases

Our client purchased the goodwill (i.e. customer lists, phone numbers and advertising) of a small paving company that was going out of business. No property or equipment was purchased by the company and no employees changed hands. The BWC combined the risks of the two companies, which increased our client's premiums by approximately $40,000 and, due to the impact on the company’s bond rating resulting from its altered experience modifier, threatened to reduce the company’s bid qualifications causing it to lose more than $1.5 million a year in revenue. Kegler Brown was retained following the Adjudicating Committee’s decision upholding the risk combination. On appeal, our lawyers convinced the Administrator’s Designee that the combination was improper, which saved our client both premium dollars and potentially significant loss of revenue.