OAKLAND, california, August 10, 2021 / PRNewswire / – The Board of Directors of the California Self-Insurers’ Security Fund has approved and implemented the 2021/22 Alternative Security Program (ASP), which releases $ 6.8 billion in working capital and provides California greater financial flexibility for self-insured companies.
The ASP is the nation’s first innovative program managed by the nonprofit California Self-Insurers’ Security Fund. The program provides a financial safety net to replace the security deposits required to secure the compensation obligations of self-insured workers.
“When an employer’s self-insurance program is supported by the ASP and the Auto-Insurer Safety Fund, it reduces workers’ compensation costs and frees up working capital,” said the president of the board and chief executive officer. Tim East. “Workers’ compensation is usually a big expense, and this program benefits both business owners and the larger California economy.”
âSelf-insurance gives employers more control over claim delivery and cost savings,â said East. âIn addition, the membership fees of the Fund’s ASP have been reduced by 15% this year, providing even greater benefits and savings to members.
“The Fund’s historically strong and rigorous credit monitoring practices have enabled the Fund to safely weather the economic uncertainty of the coronavirus pandemic and to emerge strong and well positioned to continue serving its members into the future.” , said Dan Sovocool, Partner at Nixon Peabody LLP and External General Counsel of the Security Fund. âThe Fund continues to be a solid resource and a partner for California self-insured employers.
All employers of California are required to have work-related accident insurance to cover their employees in the event of work-related accidents or occupational diseases. Employers can meet this requirement by obtaining an insurance policy or by obtaining authorization from the Office of Self-Insurance Plans (OSIP) of DIR to self-insure workers’ compensation responsibilities. companies.
Self-insured employers maintain a deposit equal to their estimated liabilities. Employers can make the deposit in cash, letters of credit, bond or securities. The use of these instruments limits the employer’s ability to use cash or line of credit. On the other hand, the PSA of the Security Fund allows employer members to free up their cash or line of credit, which allows them to reinvest this capital in their business. The ASP provides the member with a low cost substitute for collateral without impacting the balance sheet.
California currently has more than 3,500 private employers protecting more than 2.3 million workers representing a wage bill of nearly $ 126 billion through workers’ compensation self-insurance plans.
A self-insurance plan protects one in eight people California workers. Self-insured private employers in California represent large and medium-sized private companies and industrial groups.
The California Self-Insurers’ Security Fund (CASISF) is proud to serve its members for 37 years since its inception on July 6, 1984. The Security Fund is a non-profit, member-driven organization led by a volunteer board of directors representing members serving members. The Security Fund is a strategic partner that supports California self-insured workers’ compensation programs. âWe are California Workers’ Comp Expertsâ with an exclusive focus on self-insurance.
More information on California The Worker’s Compensation Self-Insurance Program is available on the CASISF website – www.securityfund.org or by email [emailÂ protected] . For media inquiries contact Becky lysaght (510) 879-6035. #CASISF # CASISF37years
SOURCE California Self-Insurers’ Security Fund (CASISF)