The Texas Department of Insurance (TDI) allows qualified private employers to self-insure their workers’ compensation policy. To be approved as a Certified Self Insurer (CSI), the employer must first apply for a Certificate of Authority and file a surety bond with the Division of Workers’ Compensation.
Jet Insurance Company provides the Self-Insurance Workers’ Compensation Bond as an assurance to the Department of Insurance that the private employer will comply with all CSI rules and regulations, as well as fulfill the required workers’ compensation benefits to their employees. If it is found that the employer has committed a violation or failed to fulfill their workers’ compensation benefits, the surety bond may be used as restitution for losses incurred by the damaged employee themselves and/or the Division.
If you are looking to provide your employees with self-insured workers’ compensation benefits, click the button above to apply for the required licensing surety bond. Our application process is quick and you can purchase your bond immediately after receiving approved rate options.
According to the Division of Workers’ Compensation, the Self-Insurance Workers’ Compensation Bond amount must be either $300,000 or equal to 125% of the private employer’s incurred liabilities for compensation, whichever is greater.
Once you have submitted your online application, a Jet underwriter will conduct a quick review. You will receive approved rate options by email that are ready for immediate purchase. Simply choose the monthly, annual, or multi-year bond term option that is best for you and fulfill the payment. When all the steps have been completed, you will receive a copy of your bond form and receipt by email instantly.
To become a Certified Self-Insurer with the Division of Workers’ Compensation, the private employer must meet the requirements listed on the Certified Self-Insurance Qualifications webpage. For example, an estimated manual insurance premium for workers’ compensation of at least $500,000 in Texas, or $10,000,000 nationwide is required of the private employer.
Self-insurance allows an employer to pay for their own workers’ compensation benefits and losses rather than buying an insurance policy from a third party. In order to ensure that the private employer will follow all CSI regulations and fulfill their workers’ comp duties, the Division requires the Self-Insurance Workers’ Compensation Bond. This surety bond essentially acts as an extra layer of protection for employees of CSIs and the Division themselves. If a violation is committed such as a breach of contract, the bond will act as restitution for losses incurred by the damaged party.
Our application for the Self-Insurance Workers’ Compensation Bond can be completed fully online. Our underwriting team will need some general information such as your contact details, required bond amount, and personal social security number for a soft credit check. A Jet underwriter may contact you for additional details regarding your business financials. Once our review of your application has been completed, you will receive approved rates for monthly, annual, and multi-year bond term options. Simply choose your preferred payment plan, fulfill payment, and you’ll instantly receive a copy of your receipt and bond form.
Yes! We can file your bond for you at no extra cost. However, if you would like to file the bond form yourself, this option is available for selection at checkout.
The original signed and sealed Self-Insurance Workers’ Compensation Bond must be submitted to the Texas Department of Insurance’s Division of Workers’ Compensation at the following mailing address:
Texas Department of Insurance, Division of Workers' Compensation
Self Insurance Regulation, MS-60
7551 Metro Center Drive, Suite 100
Austin, TX 78744-1609
First-time Certified Self Insurer applicants must request an application packet from the Division. This can be done by calling 512-804-4775 or by email at [email protected]. For further details on how to fill out your application, take a look at the TDI Self-Insurance Application Guide.
As for CSIs that are renewing their Certificate of Authority, all renewal forms are customized for each private employer and will be sent to you by the Division once your renewal date approaches.
You can cancel your surety bond with Jet at any time! All we ask is that you send us a written cancellation request to [email protected], and once received, Jet will begin the termination process. A 60-day cancellation notice will be sent to the Texas Department of Insurance regarding your bond. The liability of the bond will then be officially released once the mandatory liability period has ended.
If you are enrolled in our monthly payment plan, you will be required to make payments during the 60-day period as your bond is technically active during this time. All future payments will cease once these last few steps have been taken care of.
As for refunds, if you purchased a multi-year bond term and choose to cancel early, Jet will review your bond for any unused premium. You will receive a reimbursement at the time of your official cancellation if anything is available.
Private employers that are part of our monthly payment plan won’t have to worry about renewing their bond! The Self-Insurance Workers’ Compensation Bond will remain in effect as long as payments are made.
If you purchased an annual or multi-year bond term, the Jet team will send you a renewal invoice prior to your bond term expiration date via mail and email. To renew, simply complete the standard payment due and your bond will remain active with the Division of Workers’ Compensation for another term.
Private employers are expected to follow the rules and regulations pursuant to Title 5, Chapter 407 of the Texas Workers’ Compensation Act as it applies to the duties and obligations of a Certified Self-Insurer. Committing a violation or failing to provide proper workers’ compensation benefits to your employees may lead to a loss of your Certificate of Authority, large fines, misdemeanor charges, other civil penalties, and/or a bond claim. Making certain that you meet all contractual and payment obligations is the best way to avoid penalties.
Claims on the Self-Insurance Workers’ Compensation Bond typically occur if the Division finds that the private employer committed negligence, fraud, made a misleading statement, concealed material facts, or failed to provide their employees with the regulated workers’ compensation benefits.
Any employee financially harmed may file an official complaint with the Division. In cases where the complaint is found to be valid, the Commissioner of the Division will hold a mandatory hearing to determine possible civil penalties and whether a claim on the surety bond will be filed. If a claim is pursued, the Self-Insurance Workers’ Compensation Bond will be used to cover the costs of the losses incurred by the damaged employee and may also be used to reimburse the Division for any claim payouts and associated expenses they may have paid for on behalf of the private employer.
It is in your best interest to work with any aggrieved employee and the Division of Workers’ Compensation to try and resolve the matter the best you can before civil penalties and a bond claim are pursued.
If you receive a claim notice from the Division of Workers’ Compensation, immediately contact Jet! We will ask that you provide us with all available information and documentation regarding the alleged violation and claim. These details will be utilized for our own review and investigation of the incident.
Per the Texas Self-Insurance Workers’ Compensation Bond form, Jet is legally obligated to pay justified claims up to the bond limit. Payouts will never exceed the bond amount. You, the private employer, are responsible for your own actions, and therefore must reimburse Jet for the claim payout made on behalf of your transgression. An omission to fulfill this requirement can lead to future difficulties in obtaining surety bonds in the State of Texas.
The Texas Department of Insurance Division of Workers’ Compensation allows an additional option for private employers that are interested in self-insured workers’ compensation. According to Title 5, Chapter 407A of the Texas Workers’ Compensation Act, an unincorporated association or business trust composed of five or more private employers may establish a workers’ compensation group.
However, Jet does not recommend this route due to the considerable headache it would cause you not only to apply but also to stay enrolled in the self-insured workers’ compensation group program.
The qualifications just to apply and the requirements to actively provide a workers’ compensation self-insurance group policy are quite extensive. For example, the private employers that wish to organize a workers’ compensation self-insured group must have five established years of operation within the State of Texas in order to qualify. To be approved for this program, you will also need various forms of security such as a custom Workers’ Compensation Self-Insured Group Bond (minimum $300,000 bond amount required), a $250,000 Fidelity Administrator Bond, a $250,000 Fidelity Service Company Bond, and possibly a $250,000 performance bond if the Commissioner of the TDI feels that it is necessary.
With this in mind, it would be a better option to either become a Certified Self Insurer as a single private employer or to simply purchase a workers’ compensation policy from a third-party insurance provider.