Basics of GSI: Considerations

Increased dedication – Group Self Insurance demands more involvement from employers in the areas of loss control and claims management. Insurance companies allow you to pay a premium and forget about insurance or risk. A self insured group, by its very nature, demands that employers focus on workplace safety and injury response.        

No dividend distribution until group is financially established – While this could be seen as a disadvantage to some, it is actually another safety net provided for the program.

Joint and several liability obligation

An insurance company’s bottom line results (loss vs. premium) play a major part in their pricing.  During the past three years, in the standard market,  premiums have risen dramatically due to adverse overall loss experience and poor financial market conditions, of which the employer have little control.

Through aggressive CRM risk management controls, and state regulations, trust members are positioned to minimize their joint and several liability exposure:

• Focused, peer group not affected by other industries
• Proper underwriting, premium is set for every member based on their loss history
• Loss control and injury response programs are required of every member
• Claims response is quick and comprehensive.  Claims management is state of the art
• Excess insurance limits large and frequency losses
• Annual State Financial and Actuarial reviews assure long term financial capacity