Real Experts- Trusted
When Do I need a State Fund workers comp
Most states require employers to obtain workers compensation insurance coverage in
order to provide their employees with medical benefits and compensation for lost
wages due to injury or illness, occupation disease, or death arising while on the
job. Typically, workers comp insurance coverage should be purchased from a voluntary
market insurance carrier when available.
In some instances, employers are unable to find a voluntary market insurance company
willing to quote their workers' comp coverage. Some common reasons for this include:
Since workers compensation insurance is required throughout the United States, every
state must provide access to work comp insurance so employers are able to purchase
coverage in the state. State Fund programs are also referred to as the Residual
Markets. They are more commonly known as State Insurance Funds, Assigned Risk Plans,
or Workers' Compensation Pool Policies.
There are several ways in which a particular state may set up one of these residual
markets. Some states establish their own State Fund to write coverage. Other states
may create competitive State Funds which write both pool policies and voluntary
market policies. States such as Florida
establish a Joint Underwriting Association
(JUA) to provide coverage. However, most NCCI states establish Workers' Compensation
Insurance Plans (WCIP, or Assigned Risk Plans), which are administered through NCCI
(National Council on Compensation Insurance).
Each WCIP State Fund provides a mechanism through which eligible employers who are
unable to find workers compensation coverage in the voluntary market must use to
purchase workers' compensation insurance. Some states require proof of declination
from one or more private carriers in order to access the State Pool.
Insurance coverage through the State Fund often costs 15% - 40% more than it would
through a standard voluntary market. Therefore, State Fund programs should usually
be an Employers last resort. Even when State Insurance Fund rates are reasonable,
the Funds are often more difficult to deal with and unable to provide out-of-state
work comp coverage, if needed.
At Workers Compensation Shop.com, we work with State Funds and Residual Markets in
most states; however, our goal is always to help our customers avoid these markets
each year as their policies renew. Our Specialists are trained to help employers
understand what it takes to lower their workers comp rates and find voluntary market
If you are with Your State Fund for coverage, or have a workers comp Pool policy in
your state, their is a good chance you can save money on coverage. Sometimes its
simply a matter of shopping your policy with a national agency like Workers
Compensation Shop.com. It often comes down to controlling your workers comp losses
and claims over a period of time. We have carries and safety services designed to
help with these issues.
Employers should always endeavor to prevent injuries from occurring with good
training practices and safety initiatives. When injuries do occur, employers need to
have a quick, caring, and responsive claims management program in place to help
employees recover and return to work as quickly as possible. Employers should also
communicate with employees frequently throughout the recovery process and provide a
Return to Work Program when possible.
Call One of our Workers' Comp Specialists at 888-611-7467, or
Find your best workers compensation quotes. It takes 3 minutes.
The State Insurance Fund is often 15%
40% higher than a policy written through a private insurance company.
Our Workers' Comp Specialists are experienced in dealing with the NCCI residual
markets and State Fund insurance programs throughout the United States. If you need
a State Fund policy for your business, contact us at 888-611-7467 today for help.
When we shop your workers compensation coverage, we work hard to find quotes outside
of the State Insurance Fund. We currently offer several State Fund De-Population
Programs through our private insurance companies to help business owners avoid
paying higher rates for State Fund insurance. Our agency is appointed with dozens of
insurance companies specializing in higher risk industries and businesses who have
had a few large claims affecting their experience modification rating.
In the event we are unable to offer coverage options with our partners, we will
solicit quotes from the appropriate State Fund and then advise you on what steps
your business can take to help avoid a State Fund policy at your annual renewal.
Our agency has access to most State Insurance Funds. We've already helped thousands
of employers purchase State Fund coverage when a voluntary market policy is not
available. We are appointed with NCCI and can provide State Insurance Fund and
Assigned Risk quotes in the following states: