FAQ
What is a Workers’ Compensation Self-Insured Group (SIG)?
A SIG is a group of small or mid-size businesses with the same industry classification that have joined together to self-insure their Workers’ Compensation liability as a group. In California all SIGs must be approved by the State Office of Self-Insured Plans (OSIP).
Is Workers’ Compensation self-insurance a safe alternative to traditional insurance?
Yes, when structured correctly. California has one of the strongest self-insurance programs in the nation and has some of the strongest regulations designed to ensure the system protects both employers and employees. The Credit Union Self-Insured Group (CUSIG) is known within the industry as being one of the most financially conservative groups and establishes financial reserves that far exceed state requirements. In addition, CUSIG purchases excess and aggregate excess Workers’ Compensation insurance which limits each participant’s annual loss payments.
Is there a minimum size requirement for a participating Credit Union?
Credit Unions with an experience modification below 1.20, at least $500 million in assets, and at least $5 million in payroll are eligible.
Will this program increase the workload of our HR staff?
No. In fact, most participants see a reduction in the amount of time they spend on Workers’ Compensation claims management. When compared to traditional insurance carrier claims handling, CUSIG’s claims adjusters are more experienced and maintain lower caseloads resulting in more efficient claims handling and faster claim closure.
Are claims handled any differently through CUSIG?
No. However, as a self-insured group CUSIG has the flexibility to exert more control over the claims handling process. As a result, over the 5 year average cost of a lost time claim in CUSIG is 60% less than the California Workers’ Compensation Insurance Rating Bureau (WCIRB) average!
Will CUSIG provide employee safety training?
Yes. CUSIG participants are required to go through annual safety inspections. Participants can also take advantage of on-site safety training, and Credit Union focused safety programs. Some examples of training include developing an effective return-to work program, teller station and workstation ergonomic best practices, safety committee best practices, and on-site ergonomic workstation evaluations.
If we are successful in controlling our claims will our Workers’ Compensation costs go down?
Yes! Over the past 9 years Credit Unions participating in CUSIG have collaborated to develop highly effective loss prevention and claims management programs resulting in fewer claims and lower losses. Instead of paying excess premiums to insurance companies CUSIG participants have retain all funds after losses and expenses are paid!