Self Insureds And The Workers Comp System - Misconceptions

I have heard from many self insureds that I do not post often enough about the trials and tribulations of handling a Workers Comp Self Insured Program. They are/were correct. I am going to post a few blogs on self insurance over the next few days.

I will begin with the misconceptions that some self insureds or anyone else may have about being self insured for Workers Comp:

• Self insurance takes us out of the Workers Comp system.
• We only have to worry about what is paid, not the Total Incurred (Paid + Reserves).
• My company will easily qualify for Self Insurance.
• Self insurance will always save us $$$ when compared to a regular Workers Comp policy.
• We are in a risk pool with other insureds, but that still makes us self insured.
• We receive the same claims service from our TPA as an insured with a regular insurance policy.
• Captives are self insurance.
• PEO's are self insurance.
• We are in a large deductible program with a high retention level. That makes us the same as a self insured.
• If our company falters, a state-sponsored fund will pick up all of our claims and pay them.
• Self Insureds have more control over their Workers Comp claims.

I may add more as I think of them. I will post on one or maybe two of these over the next few days. If you can think of any questions about self insurance, please email them to me and I will answer them.