A self insured employer is one who self insures their workers’ compensation liabilities. If you are one such employer, you are not alone: California has the largest workers’ compensation self insurance program in the nation. As of January 1, 2014, nearly 10,000 California employers were actively self insured.
Employers may choose to self insure their workers’ compensation liabilities because it can be cost effective, allow the employers greater control over the claims program, and increase safety and manage loss control. Many employers contract with a third party administrator to supervise claims and perform other tasks. The alternative to self insurance is purchasing a workers’ compensation policy. Learn more about workers’ comp basics here.