Workers' Compensation: Risk of being self-insured
According to the results of a recent Small Business Opinion Poll conducted by Opinion Research Corporation (ORC) of Princeton, N.J. , a majority of small business owners surveyed are not aware of the financial risks of being self-insured.
Eighty-five percent (85%) of the 501 small business owners surveyed throughout the country were not aware of the closure of several self-insured groups over the past year. In New York, seven self-insured trusts failed this year. Several self-insured groups in Tennessee, Kentucky and California are involved in litigation.
Of the small business owners responding to the survey, 58% reported they were unaware that companies belonging to self-insured groups remain financially responsible. They would remain financially responsible for not only providing injury claims for their businesses, but for the claims of all businesses in their group.
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