Home > Glossary

Self Insurers Bond

Self-Insurer's Bond

Definition

Self-Insurer's Bond — a type of surety bond that provides a promise to pay self-insured losses in case the promisor (self-insurer) is unable to meet its obligations. For example, in order to self-insure workers compensation risk, most states require that the self-insurer post a self-insurer's bond with the state. The state then recognizes that the self-insurer will have adequate resources to pay workers compensation claims.

Related Products

User ID: Subscriber Status:Free