A Self Insured Group is a group of employers in a common industry who have joined together to provide workers’ compensation benefits. The group is a California “Non-Profit Mutual Benefit Corporation” that only exists to benefit the members. Subsequently, the members own the self insured group.
The way it works is simple, yet effective. Group members make contributions to the self insured group, and the self insured group pays expenses and claims for injured workers. A self insured group directly contracts for services normally performed by an insurance company.
Members of HISIG are owners of the following types of businesses or industry related businesses:
- Lumber Yard
- Building Materials
- Home Improvement Center
- Hardware Store
- Nursery (Including Cannabis Growers)
- Truss or Building Components
- Furniture Store
- Landscaping Supplies
- Door, Sash, Window Manufacturing
- Farm Supply
- Various Other Wholesale and Retail Stores
Self Insured Groups are regulated alternatives to traditional insurance that are approved by the State of California to provide workers’ compensation benefits to member employers. A self insured group is a California Not-for-Profit Mutual Benefit Corporation run by a Board of Trustees.
Each self insured group is reviewed, approved and monitored by California’s Department of Industrial Relations, Office of Self Insurance Plans (OSIP). Just as each self insured group is reviewed and approved, each member of a self insured group is similarly reviewed to ensure that individual employers meet the requirements of membership. A self insured group is a “shared-risk” pool, with joint and several liability among members.
A Self Insured Group is made up of the following parts:
- Members who share a common industry
- A Board of Trustees
- An Administrator
- Third Party Claims Administrator (TPA)
- Safety and Loss Control services
- Independent Accountants and Actuaries
- Excess Insurance Carrier