Product Update

Workers Compensation Self-Insurance Regulations Updated in Risk Financing

This release of Risk Financing includes updates to the summaries of state regulations for self-insuring workers compensation.

In order to guarantee that employers have the financial ability to satisfy the benefits payable to employees for on-the-job injuries, self-insurance of workers compensation is closely regulated. All states have their own workers compensation laws with which employers must comply (Texas and Oklahoma being the only exceptions with their alternative provisions). Most states allow employers to self-insure the risk instead of buying workers compensation insurance. Employers must obtain approval from every state in which their self-insurance programs are to apply (with the exception of a few states' exemptions for public entities).

The summaries list some of the major requirements of the various states that allow self-insurance, such as the following.

  • The materials that must be submitted with an application for self-insurance
  • Security requirements
  • Requirements for excess workers compensation insurance
  • Fees for initial applications and renewals
  • Taxes and assessments charged to self-insureds
  • Reporting requirements
  • Minimum employer size, premium, and net worth requirements

The summaries also list the name and contact information of each state agency responsible for regulating self-insurance, as well as the state's Web address for online information.