Buying the assets of a business and/or a change in ownership can affect your Experience Mod
It is a common misconception that purchasing the assets of a business will not affect a company’s Experience Modification Factor. The sale, transfer or conveyance of an entity’s physical assets to another entity that takes over its operations is considered a change in ownership. Generally, this means that the data related to the Experience Mod is also purchased. This can be true even when purchasing the assets of a business in another state.
The rules governing change in ownership are complex and may result in a change in the Experience Rating Modification, combinability status with other entities, premium eligibility status, anniversary rating date and rating effective date. Before entering into a sale, transfer, conveyance, merger, consolidation or formation of a new entity, it is important to discuss the potential impact with us.