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Worker's Comp GSI: Protections and Risks
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Excess Insurance and Liability
To protect the group self-insurance premium fund
from a single large loss or the loss of the total amount of all claims
combined, an excess insurance policy is purchased. Protection from a
single large loss is referred to as "specific excess
insurance." Protection regarding the frequency total of all
claims is referred to as "aggregate excess insurance."
Each member of a self-insured group being required to assume joint and
several liabilities means a financial risk for each member. Should
the assets of the group be insufficient to cover debts, each member would
be subject to an assessment in order to fund the shortage. The purpose of
an excess insurance policy is to help limit the group members' joint and
several liabilities.
Long-Term Financing Commitments
Alternatives to traditional insurance coverage, such as self-insurance,
group self-insurance, or captive insurance programs, require a long-term
financial commitment. Those interested in these kinds of
alternatives are required to fund the costs of establishing the program,
including capitalization of a captive and the time necessary to achieve
operating results.
Is Workers' Comp Group Self-Insurance right for my
company?
 click here to learn more . . .
Contact:
Ralph Matthews
916.563.1900
Vice President, Workers' Compensation
10445 Old Placerville Road
Sacramento, CA 95827
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