How Does A Self Insured Group Work?


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, and some of the services secured on behalf of members include:

  • Program Administration
  • Safety and Loss Control Services
  • Third Party Administration (TPA)
  • Independent Accountants and Actuaries
  • Excess Insurance Carrier