About Group Self-Insurance
AssuredPartners of Missesota is expert in Group Self-insurance. Enabled by Minnesota Legislature in 1982, all groups and new members to groups are approved by Department of Commerce.
The law allows groups of employers in similar business’ to join together to form an entity that is large enough to financially enable self-insurance, some examples:
- The Builder’s Group (Tradesman Contractors)
- Benedictine Group Self-Insurance Association
- Board of Social Ministry TRIFAC (Manufacturers)
- Minnesota League of Cities
- Minnesota Nonprofit Employers
In Minnesota, over 1500 business have elected to self-insure workers’ compensation obligations in about 25 groups. Members contribute “premium” to the group’s Claims and Expense Fund. All claims are reported to a qualified “Third Party Administrator”. Claim payments are made from the group fund, by the administrator, complying with workers’ compensation law.
Group Bylaws, approved by Department of Commerce, govern the functions of the group Board of Directors, how group funds are to be managed, how new members are approved and other operating issues.
Because members of a self insurance group are “jointly and severally” liable for the group’s workers’ compensation obligations, the group is required to purchase insurance to protect the state and assets of individual firms. The Minnesota Workers’ Compensation Reinsurance Association (WCRA) provides insurance that protects the group from any one “occurrence”. There is no limit and a $410,000 deductible applies. This Fund also has “aggregate” insurance that limits the total amount of claims the group must pay in a year.