Should I Self-Insure?

Should my business self-insure?

To help you decide whether or not to apply to self-insure, please use the analysis checklist. This checklist will help to create a cost comparison between self-insuring or insuring through L&I.

More to consider:

  • Ask your L&I account manager for your company’s 3-5 year claim history. Review both the number of claims and the related claim costs. This will help you forecast your required self-insured assessments that are based on claims costs.
  • Review the worker hour information from your Quarterly Report. This will help you forecast your required self-insured assessments that are based on worker hours.
  • Review current and past self-insurance assessment rates.
  • Third Party Administrator (TPA) costs.
  • The Employers' Guide to Self-Insurance in Washington State (F207-079-000) provides additional details about employer requirements and responsibilities.

How do I apply?

How do I apply to be self-insured?

To apply to be self-insured, an employer must complete and submit the following documents:

Additional forms that may be required:
Review various forms noted in WAC 296-15-021 and WAC 296-15-121

Surety, a legal financial guarantee, must be secured by:
Self-Insurer’s Bond (F-207-068-000)
Escrow Agreement (F207-039-000) (request L&I designated banks)
Irrevocable Stand by Letter of Credit (F207-112-000) (only firms with a net worth in excess of $500 million)
Self-Insured Employer Certification of Excess Insurance (F207-095-000) (optional insurance coverage)

Completed application packets can be sent electronically to certificationsvcs@Lni.wa.gov.
Audited financial statements may be sent separately through postal services:

Department of Labor & Industries
Self-Insurance Section
PO Box 44891
Olympia, WA 98504

or

Department of Labor & Industries
Self-Insurance Section
7273 Linderson Way SW
Tumwater, WA 98501

Maintaining Status

How do I maintain my self-insured status?

Once you are approved for certification as a self-insured employer, there are requirements that need to be met in to maintain that certification. Those requirements are:

Refer to self-insurer’s reporting requirements in WAC 296-15-221.