California Self Insured Contractors Know the Hidden Dangers April 29, 2010
Posted by justgoodman in Uncategorized.trackback
The Contractors Access Program of California (CAP), a self insured group of contractors, is scheduled to be seized by California’s Office of Self Insurance Plans. Some say this take over could be as early as this week.
Let me first explain a little about self insured groups. The members of self insured groups are jointly and severally liable for each other’s claims and for the claims of the group. In other words rather than being insured by a carrier the group all pays in and protects each other. The seized group will have some significant challenges in the coming months. The 200 plus in this group will be liable for a reserves shortfall through a special assessment of the members for as much as $12M to $60M. Past members are on the hook for the years during which they participated.
The Office of Self-Insured Plans, (OSIP) which has consistently fought against financial transparency for SIGs, would not comment or give advanced notice regarding any enforcement action it might be taking.
If you are a contracted interested in a self insuring program or are in a similar program and want some advice call us today. We are more than happy to answer any questions for contractors in Orange County, San Diego and Northern California! You can reach us at 888-606-2406 or visit our virtual insurance agency by clicking here.
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