California's 2014/15 Alternative Security Program Approved
Department of Industrial Relations Director Christine Baker approved it; the program provides financial guarantees to replace security deposits required to collateralize self-insured worker's compensation liabilities.
California Department of Industrial Relations Director Christine Baker this week approved the implementation of the 2014/15 Alternative Security Program. Operated by the non-profit California Self Insurers' Security Fund within the department, the program provides financial guarantees to replace security deposits required to collateralize self-insured worker's compensation liabilities. It frees $7.54 billion in working capital and gives self-insured California businesses greater financial flexibility, according to DIR.
The participation fee for the guarantee program was also reduced 10 percent from a year ago.
"Self-insurance and the ASP are two innovative ways that California supports businesses and helps them reinvest their capital," said Baker. "With worker's compensation representing a significant expense to businesses, this program benefits both the businesses and the larger California economy."
"Self-insurance offers tremendous advantages and substantial cost savings to California employers," added Jon Wroten, chief of DIR's Office of Self Insurance Plans. "With program improvements and streamlining efforts, it is now possible for a company wanting to enter self-insurance to move from initial application to fully insured in less than two weeks."
California currently has more than 9,850 employers protecting more than 4 million workers – one in every four California workers -- through self-insurance comp plans. All employers in California must have worker's comp insurance.