Learn More About Self-Insurance Groups in California
Self-Insurance Groups
The Office of Self-Insurance Plans (OSIP) authorizes qualified employers to provide their own coverage for workers' compensation liabilities. Small and medium-sized businesses have the option of joining with others in the same industry to self-insure their workers' compensation liability as a group, or a self-funded plan as it is also called. All Self-Insurance Groups (SIGs) must be approved by OSIP and are required to post a security deposit covering their actuarial determined liabilities. California has one of the largest self-insurance programs in the nation and has some of the strongest regulations designed to ensure the system protects both employers and employees.
In practical terms, employers in a self-insured group band together to provide an alternative to traditional workers’ compensation insurance by funding the operation of the group and participating in an effective loss control program to manage their risk.
It is estimated that more than 6,000 corporations and their subsidiaries nationwide operate self-insured Workers' Compensation programs. Many other employers participate in group self-insured Workers' Compensation funds, where they pool together with other companies to self-insure their collective Workers' Compensation risks.