Risks of Self-Insurance

Article 4, Section 50 (3a) and part 317 of Title 12 NYCRR of the Workers’ Compensation Law permits group self-insurance plans, otherwise known as self-insured trusts, self-insured consortiums, association trusts, or group employer plans.  Employers considering self-insurance plans should read these sections of the law carefully.

Joint and several liability, financial disclosure, security deposits, loss of experience modification, possible assessments, no stop-loss coverage, and extrication costs may be some of potential drawbacks of group self-insurance.

Self-Insurance FAQ’s

How is a self-insured group typically formed?

Is a self-insured trust guaranteed?

What are the implications of group self-insurance plans? 

How does one get out of the plan?

How do self-insured groups establish premium for their members?

What are other concerns for a business considering self-insurance?