The State of Oregon requires employers with one or more employees to obtain workers compensation insurance. Oregon’s State Accident Fund Corporation (SAIF) is a not-for-profit workers compensation insurance company that was created to oversee workplace safety and guarantee workers compensation coverage to employees. The SAIF system is designed to prevent and reduce employee injuries, provides benefits such as medical treatments, guides injured employees through their recovery, helps employees return to work safely and as soon as possible, and protects employers from legal action if faced with an employee workplace illness or injury.
When employers apply for workers compensation insurance, SAIF may find it necessary for the employer to obtain protection of the Industrial Accident Fund. This could be due to the employers business financial situation. If SAIF deems that the businesses financials are at a risky standpoint, SAIF will require a deposit as a guarantee of the annual premium payments.
The employer will need to make a deposit and keep on the deposit as an annual premium payment with SAIF for their workers compensation insurance to stay active. The deposit will be an equal sum to the estimated payroll of the employer for a period of six-months. If the employer cannot afford to make this deposit or if they choose to not make annual deposits, they then will be required to obtain the SAIF Employers Bond.
Under Oregon Revised Statutes Chapter 656, the SAIF Worker Compensation Employers Bond will be in place to cover unpaid wages, medical expenses and protects the employer from potential lawsuits.
Due to the specific criteria of the bond, Jet will need to determine all details pertaining to the business before approving the bond application. Please call our office at 855-296-2663 to start the process of eligibility.
The SAIF Workers Compensation Employee Bond amount is determined by the deposit for the business’s annual premium, the risk associated with the businesses financials, and the businesses history. Per Chapter 656, the bond cost should be between 2 to 7.5% of the bond amount. The bond must be continuously active for the workers compensation insurance license to remain in good standing.
The original signed and sealed bond form must be submitted to SAIF’s Workers’ Compensation Division. The address is as follows:
Workers’ Compensation Division
350 Winter Street NE
P.O. Box 14480
Salem, OR 97309-0405