- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If your state requires a self-insured workers’ compensation bond before you can self-insure, send us the requirement. We’ll look at the bond form and amount and tell you what the surety needs.
A self-insured workers’ compensation bond is a surety bond that a state workers’ compensation agency can require from an employer that wants to pay its own workers’ compensation claims instead of buying a traditional policy.
Not necessarily. States that allow self-insurance set their own security rules. Some accept a surety bond, and some accept other forms of security, such as a letter of credit or a deposit, either instead of or along with a bond.
Check with your state workers’ compensation agency, or send us the paperwork and we will start there.
Usually the surety will look at more than a credit score. Expect requests for financial statements and other information about the business.
If your financials are not strong, tell us up front. Surety companies do not all underwrite the same way, and some bonds may need collateral.
These bonds can involve large financial obligations, so underwriting is usually detailed. A surety may ask for audited financial statements, loss history, information about the business and its claims handling, and sometimes collateral.
If you are preparing an application, start early. A complete file helps the surety give you a clear answer.
No. A policy transfers the claim risk to an insurer. A self-insured bond is security that backs up the employer’s own promise to pay claims.
Talk with your state agency, your attorney, or a workers’ compensation specialist about whether self-insurance fits your business.
You normally pay a premium for the bond, not the full bond amount.
The price depends on the bond amount, your financial strength, loss history, collateral, and the surety company. Because the amounts can be large, we cannot give a price until the surety has reviewed your file.
Send us the state’s requirement and basic company information. The most useful items are:
It depends. These are larger, more detailed files, so they usually take longer than a simple bond. Timing depends on the financial information, any collateral, and the state’s review.
If the state gave you a deadline, send it with the first request.
If this is not the bond you were asked for, these pages may help.
Yes. Whether self-insurance is allowed, what security is required, and which forms the state uses all vary. Do not assume the same bond works in another state.
Send us the utility’s letter or bond form. We’ll tell you what the surety needs next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
