The Department of Consumer and Business Services requires a self-insured employer to carry a surety bond as a protection that their employees will receive payment while they are unable to work due to work-related injuries. The Certified Self-Insured Employer Bond limit must be held a minimum of $100,000
In order to receive certification as a self-insured employer, the employer must demonstrate that they are fiscally responsible and able to provide payment for their workers. The bond is a measure of fiscal responsibility ensuring a Surety Company will make compensation payments to workers who are injured if the “self-insured” employer fails to do so.
The amount of the bond shall be at least $100,000 or higher under ORS 656.407. Limits higher than $100,000 are determined by the self-insured employer’s normal expected annual claim liabilities or an amount that will be reasonably sufficient to insure payment that may become due.
The best way to prevent claims on a workers’ compensation bond is to prevent injuries in the first place. A self-insured employer must enforce occupational safety standards set by the DCBS through ORS 654.097. Some ways to monitor occupational safety are to:
Through surveys, a self-insured employer can find areas of potential risks through employee feedback. Once these areas are identified, they can be modified to reduce risks by altering safety procedures or purchasing equipment that will help prevent employee injury or reduce strain that can result in injury over time. By examining past injury records, the self-insured employer will be able to identify common injuries that have occurred and pay significant attention to the prevention of such injuries. By knowing how injuries occurred and where concern for possible injury lies, the self-insured employer can create goals for a safe working environment, ensuring the welfare of their employees and reducing the risk of injury that would result in workers compensation bond claims.
Lastly, the employer needs to make workers compensation claim payments as they have agreed to themselves through their self insurance program. Failure to do so is a violation of the law that requires worker comp coverage for all employees.