California employers are required to provide workers’ compensation insurance coverage to employees, including part-time workers, seasonal staff, and non-traditional employees. There are a few different options to obtain coverage, including self-insurance. Employers in California that have self-insurance are subject to annual reporting requirements. Here, our Fresno workers’ compensation defense law firm provides an overview of the annual reporting requirements for self-insured employers in California.
What is Workers’ Compensation Self-Insurance?
The California Department of Industrial Relations (DIR) explains that workers’ compensation self-insurance is an alternative to purchasing a traditional workers’ compensation insurance policy from an insurance company. In California, self-insurance means that the employer assumes the financial risk of providing workers’ compensation benefits to its employees.
Instead of paying premiums to an insurance company, self-insured employers are responsible for paying claims directly to employees who are injured or become ill due to work-related activities. To qualify for self-insurance, employers must meet certain financial criteria and obtain a Certificate of Consent to Self-Insure from the California Office of Self-Insurance Plans (OSIP).
Self-Insured Employers Must Submit an Annual Report to California OSIP
The California OSIP requires self-insured employers to submit an annual report, which is essential for monitoring and ensuring that these employers are adequately fulfilling their obligations under the state’s workers’ compensation laws. This report must be submitted by a specific deadline and should provide detailed information regarding the company’s workers’ compensation claims and financial status.
Four Key Issues that Must Be Addressed in a Self-Insured Employer’s Annual OSIP Report
What goes into a self-insured employer’s annual compliance report in California? Here are four key issues that must be addressed in the report as a matter of state law:
- Employee and Wage Information: One of the primary elements that must be included in the annual report is detailed information about the employees. This should include the total number of employees, the classification of their jobs, and the total wages paid.
- Claim Paid (Medical and Indemnity): The report must include a comprehensive list of all the workers’ compensation claims that were paid during the reporting period. This section should detail the number of claims, the amount paid for each claim, and the total amount paid in claims.
- List of All Open Claims: It is also essential for self-insured employers to provide a list of all open claims. Any claims that have not yet been settled or closed. The report should include information on the status of these claims and any actions being taken to resolve them.
- Future Liability (Open Claims): Finally, future liability must be addressed. The future liability section is aimed at providing an estimation of the amounts that the company expects to pay in the future in relation to open claims.
Speak to Our Fresno, CA Workers’ Compensation Defense Lawyer for Legal Help
At Yrulegui & Roberts, our Fresno workers’ compensation defense attorney has the professional and legal expertise to help protect the rights and interests of self-insured employers. Reach out to us by phone now or connect with us online for your fully confidential initial consultation. We provide workers’ compensation defense support in Fresno and all across the broader region in Central California.
