Certified Self-Insurer

Certified Self-Insurance is a program that allows private employers to self-insure for workers' compensation losses. The process to become self-insured varies by state, but due to the rising costs of getting workers' compensation benefits through an insurance company self insuring has become more prevalent. Employers who choose to self-insure must offer the same amount, type and duration of workers' compensation benefits as other companies.

As mentioned above, state laws vary. In some states employers must demonstrate they have the financial strength to ensure timely payments of all current and future workers' compensation claims. In states such as Texas, for instance, employers must also apply to the Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC) Self Insurance Regulation (SIR) program for a Certificate of Authority to Self-Insure. Texas also requires companies to submit to a financial audit, operate in Texas, have sufficient credit ratings, post a minimum security deposit, and pay their application fees.

Other states, such as Oregon, have other requirements. For instance, employers in Oregon must offer proof of the employer's claim processing ability, submit to annual audits, have occupational safety and health loss control programs in place, provide information about types and retention levels of excess insurance, and have evidence of their ability to obtain a surety bond or an irrevocable standby letter of credit.